10 Questions You Should Ask Before You Take A Business Loan
As with most major decisions, there are things to keep in mind. If you are going to buy a new car, you need to know what the car’s fuel consumption, insurance cost and other costs are before you buy it. It’s the same with corporate loans. There are many differences between lenders and things to consider before taking out a business loan.
1. Is the application or quote binding?
Do not get locked out and deceived by an application or because you ask for a quote. Always ask if it is binding to apply or ask for a quote for a corporate loan.
2. Does a UC take you as a private individual?
It is no wonder that banks and lenders must take out credit information. It is rather a sign of health. On the other hand, be sure to keep apart your private finances and your company’s finances. Therefore, it is good that there are credit reports that focus only on the company and some that only take a credit report that is visible between you and the person who has ordered a statement. It is therefore not visible to everyone. Creditsafe is such a credit report.
3. Is there any setup fee or startup fee?
Be careful to see if there are any set-up fees or start-up fees to take into account when you start to calculate the cost of the corporate loan. The monthly interest rate or fee may be considered low, but if the setup fee is in the thousands of USD (which it may be in some cases), then the total cost can be very high.
4. Is there a portal such as “My Pages”?
It may be good to have a login to some form of “My Pages” to keep track of your loan with payments and other things. You may need to raise your loan or somehow change your payment plan? Then it is easiest to do so in the logged in mode.
5. How accessible is the lender?
Being an entrepreneur is living a special lifestyle. You usually never relax from job mode, but breathe and live your job. Therefore, you expect your partners and suppliers to do so as well. At MoneyAccess Finance we want to be there for you and that is why we have telephone hours at. 07: 00-17: 30 (Mon-Fri) and respond to emails and messages in social media as soon as we can, even outside telephone hours.
6. Are fees deducted directly from your desired loan amount?
How does it work, do you think? In fact, there are banks and lenders that are charged a form of setup fee directly on the amount for which you have been approved. For example, if you have applied and been approved for USD 100,000, these lenders can deduct for example USD 2,000 and only pay out USD 98,000 to your account. Snoopet, huh?
7. Do they apply a fixed loan period?
Many small businesses only need a temporary supply of money for a shorter period. Maybe even just a month or two. Make it clear to you how long you may need the money and how quickly you can repay the loan. Then you can compare lenders and see how expensive it can be to be locked into a fixed loan period. Some have the same for all customers and loans, eg 4 months. Others want half of the original loan period to have expired before you can repay. At MoneyAccess Finance you can repay your loan in advance at no extra cost. So you only pay for the time you use the loan.
8. Do they have a complicated process?
At banks, long and complicated processes are common. Often it requires some kind of physical meeting with a banker. This takes time. Time you don’t have as a small business owner. Some also require you to attach and display unnecessarily much information. Apply online to save time and do what you do best – run your business.
9. When is the money paid?
Do not expect to have the money the same or the next day if you apply for business loans from a traditional bank. Some have, as I said, long and complicated processes before you even get approved for a loan. Thereafter, a long wait to have their loan paid off can take over. If you have an urgent need, you should look for those who can pay the money the same day. Maybe some tool, machine or equipment has broken that you have to buy to keep working and making money?
10. Is there a charge even if you do not use the credit?
Some lenders charge a monthly fee, whether you use the credit or not. The fee may vary from lender to lender and case by case. An average fee for a small company is a few hundred kronor, which may not seem like much, but it is a lot of money to pay for nothing …
Corporate loans in an easier way
At MoneyAccess Finance, we want to make it so fast, safe and easy for you to apply for a business loan. We have peeled away everything called setup fees, binding times and hidden costs in order to focus only on a fixed monthly fee. We have done this to ensure that you as a small business owner always know exactly how much to pay each month. Once you have increased your income, you can repay the loan early, at no extra cost.