Non-bank loans are not just reserved for consumers. Payday loans and non-bank installment loans may also be used by persons conducting business activity, although not necessarily on the same terms as individual clients. The difference lies primarily in the formalities. We checked the requirements that a company that wants to borrow money from a private financial institution must meet.
Sooner or later, almost every person running their own business will face financial difficulties. They can manifest themselves in the form of problems in raising capital for business development or the inability to make money needed to service current expenses, eg settling liabilities to contractors or employees. At such times, entrepreneurs usually reach for a loan, but it does not necessarily have to be a bank loan.
Businesses have to make less choice
The credit availability criteria for corporate clients are more restrictive than for private individuals. Why? Because entrepreneurs belong to the group of increased risk. A self-employed person is less financially reliable. It is more difficult to predict its future profits, and the lack of stable income may result in downtime and late payment of installments.
In one sentence: the entrepreneur has a harder time. And not just at the bank, but also at the loan company.
At the bank, the owner of his own business must meet higher income requirements and prepare for more formalities. There is an additional problem with payday loans and installment loans outside the bank: not all lenders offer their services to self-employed workers.
Unfortunately, only a narrow group of non-bank companies direct their loan offer to entrepreneurs.
Payday loans for start-ups
The worst situation is for people who have been running their business activity recently. Like banks, most non-bank loan institutions require the company to operate on the market for at least six months. Less often, a shorter period of 3 months is sufficient.
Only some institutions (eg Lite lender) grant loans to “fledgling” companies from the very first day of operation.
A quick company loan up to USD 5 million
Although the list of entities in which an entrepreneur can count on an instant loan is not as long as in the case of consumer offers, the range of available amounts that can be applied for will cover almost any cash requirement.
Documents needed for a business loan
Although the entrepreneur’s path to a loan is more bumpy than to the consumer, he can obtain the necessary financing with a minimum of formalities, even on the identity card itself. The basis for granting the company payday will then be a statement, ie a written declaration of revenues.
PROOF LOAN FOR COMPANIES
Among the companies that use the most simplified application procedure are, among others Lite lender. To borrow from Lite lender for business development, all you have to do is have a business registered and a permanent address and not be on the BIG debtors register. The credit decision is issued by Lite lender within a maximum of one hour.
LOAN FOR BUSINESSES ON ACCOUNTS
As proof and account statements (from the last 3 months), the entrepreneur will borrow, among others in Lite lender. The loan application usually takes a few hours to process (waiting for the decision should not exceed two days).
In turn, lender requires the applicant to provide statements for the last 12 months (from the company’s account). To apply for a loan, the company must generate annual revenues of at least 130 thousand USD. The credit decision is issued even in 1 day.
REGISTERED AND ACCOUNTED DOCUMENTS
The set of documents necessary to register a loan application for many lenders depends on the characteristics of the enterprise. An application for a non-bank loan may require submission of a certificate of entry in the business register, certificate of REGON number and tax identification number, financial books from the last quarter and the previous calendar year, a list of fixed assets, a list of receivables and liabilities.
LOAN DOCUMENTS FOR MORTGAGE
In the case of mortgage loans, the following are also required: land and mortgage register number and document confirming the method of purchasing the property together with a photograph of the interior of the property.