TAKING OUT SME CREDIT: SIMILARITIES AND DIFFERENCES TO THE BANK
Nowadays, current accounts are opened online and transfers and investments are made directly online. However, when a business loan is needed, many business owners choose to go to the bank they trust. But there is already the first advantage that speaks for a marketplace lending platform, because a loan request can also be made online. Compared to the classic way, you can submit your credit inquiry online, directly from your office. You have the flexibility to decide when you want to take out the loan and can therefore act completely independently of the opening hours.
Credit check on business loans
To check your business credit online, as with a bank, certain documents and data are required. Both an online loan platform and a bank evaluate each loan request based on certain criteria. The determination of creditworthiness and creditworthiness is of high value.
While it is determined within the creditworthiness whether the company is able to bear the additional requested debt on the basis of the financial key figures, company-related data such as the age of the company, the development and further information are examined more closely for the creditworthiness. Among other things, the payment behavior is analyzed and how fluctuations affect the company and how robust it reacts to them. The decision for a loan is influenced by quantitative and qualitative indicators.
We need the following data from you to assess and determine:
- Valid passport or ID copy (including foreigner ID) from the authorized signatory or holder
- Annual accounts for the past 2 years (balance sheet and income statement)
- Depending on the security specified, additional documents may be required
- Current list of orders and accounts receivable
- For sole proprietorships: copy of the last definitive tax assessments including assessment details (private)
- For sole proprietorships: copy of the current tax return
- Possibly. Liquidity or budget plan
- Possibly. Copy of the last interim financial statements
- Possibly. Other documents, depending on the business model
Our tip: Prepare all documents before you submit your loan request. This enables you to positively influence or at least accelerate the decision-making process and to apply for the planned business loan quickly and easily.
The determination of the quantitative key figures includes the calculation of the free cash flow within the portability calculation. For this purpose, the figures from the balance sheet and the income statement are taken and offset and evaluated accordingly. In addition, other data from external information centers are used for assessment.
Determination of the interest rate
When reviewing business loans, companies can improve your interest rate by providing us with security. A security can consist, for example, of a mortgage or a surety. A company is offered a better rate of interest, especially with a mortgage.
Why is it becoming increasingly difficult for SMEs to apply?
This topic has already been discussed strongly and often in the media. Small and medium-sized companies in particular must find that the requirements of banks are difficult to meet. Starting with amounts that are too small, which are not profitably efficient for banks, or with excessively high collateral and key figures that remain inaccessible for many SMEs.
Compared to traditional banks, our costs are kept to a minimum. We only operate online. Classic banks have a large branch network and have to manage and manage it accordingly. In addition, we have automated processes that allow us to process loan offers within a few days. Of course, our customers can also contact us by phone for any questions or ambiguities. Together with our loan experts, we always strive to find the optimal solution for every borrower.
You currently need funding and would like more information. Take a look at our website and apply for your corporate loan directly online.