Business Loans: what they are, to whom they are addressed, conditions and interest rates
Among the numerous financing options available for 2019 are business loans . This type of financing is different from personal loans as it is not aimed at any type of client. So before analyzing the economic characteristics of this product it is good to focus on who are the beneficiaries of these loans. As can easily be understood from the name, business loans are short or medium-term loans that are obviously addressed to companies , but more generally to all those who carry out a business. Therefore, all self-employed workers who work as freelancers , artisans , individual companies regardless of their sector of the economy, and finally companies and entities, can access the business loans. What differentiates business loans from personal loans is not just the type of clientele that this product targets. A very important difference lies in the fact that these are not non-finalized loans. In order to receive a company loan, it is necessary to present the cost estimate that must include the purchase of goods or services strictly connected to the performance of their business activity.
Therefore, thanks to company loans, companies will be able to meet various expenses necessary for the growth of their business , with the advantage of being able to meet these expenses in convenient installments. If you are interested in this type of financing our advice is to evaluate different solutions so you can compare the economic conditions offered based on the estimates that will be proposed. To analyze in detail the main features of business loans, let’s take a look at what are currently the best solutions on the market.
One of the leading banks in its product range for business loans. The product that is proposed by this company is the Business Loan , which has the advantage of being flexible and adapting to customer needs. With the business loan it is possible to receive an amount of up to 200,000 euros , which obviously will have to be used to face the eligible expenses related to the development of your company. Regarding the duration of the repayment plan, this can be set by the customer at the time of the request in order to fix the monthly rate that you prefer. In general, however, the duration must necessarily be between 6 months and 120 months . Finally, the Business Loan is very flexible also from the point of view of interest rates. It is in fact possible to choose between a fixed rate that guarantees a single installment for the entire duration without surprises, and a variable rate thanks to which you can save money in the event of positive movements in the financial markets.
Another very good company loan is offered . The general characteristics of the loan are very similar to those we have listed so far. It is in fact a loan aimed at freelancers, companies and companies that are interested in investing in their business by addressing expenses for the purchase of machinery, IT services and so on. Also in this case it is possible to choose between a fixed rate and a variable rate . To receive a detailed cost estimate and therefore know the monthly repayment rate and the applied interest rates, contact the company or go directly to one of the branches. To receive further information about the company loans offered by the bank, it is possible to fill in the form available on the company’s website by entering our personal data and a telephone number. We can also specify whether to be contacted by phone or via Whatsapp. Once contacted by the company we can then schedule an appointment at the nearest branch in order to receive a detailed estimate for our company loan.
Although the products just analyzed are particularly interesting, it should be noted that business loans are not only offered by banks. In some cases it is indeed possible to access even cheaper products. For example, we are talking about non-repayable loans for micro, small and medium-sized companies , or loans at zero interest rates and, more generally, for subsidized loans . These loans are usually offered to those who are willing to start new startups . Therefore, those who want to start their own individual company, a small business or a company can take advantage of these loans. Usually, priority is given to these business loans to special categories of customers such as young entrepreneurs aged between 18 and 35 or female entrepreneurship . Therefore, if you are willing to start a new business and are looking for a company loan, we advise you to take a look at the calls for tenders in your region for the granting of non-repayable loans or subsidized loans. To see if you can have access to the desired credit, just read the call for bids regarding the sectors of the economy affected by the call, the maximum amount payable, the eligible expenses and anything else.
Business Loans for Employees: loan payroll request for liquidity
Another type of loan that is identified under the name of business loans is that of loans to employees. This financing option is very interesting as it can allow you to save yourself a lot. First of all, let’s see how the business loans for employees work in general. It is a personal loan that has the distinction of not being provided by a real credit institution, but by an employer. These are in fact what are called the fringe benefits , ie “favors” that the employer can choose to offer to their employees in order to strengthen the link with the company. As far as the economic treatment offered is concerned, the payroll loan for liquid assets can be considered to all effects a transfer of one fifth of the salary .
The payment of the loan takes place on the paycheck and the repayment installments agreed for the entire duration of the loan will be deducted from the same every month. The advantage of business loans for employees is certainly in convenience . By choosing this solution it is indeed possible to access the desired amount through a loan with a particularly low interest rate . Moreover, compared to the loans offered by the lenders, this solution can be requested more easily because the required requirements are minimal . Our employer knows everything about us and our economic situation, which is why he will immediately be able to assess the installment we can fix. So based on the amount at which we are interested we can set the ideal duration. Requesting the business loan for employees is very simple, and to do so, simply contact our employer directly without going through any financial intermediary.
In particular, in order to make a cash-on-demand payroll loan request, we need to send a document to our employer that can be sent either by email or by paper. This document must obviously include our personal data and the amount to which we are interested, which usually does not exceed 5,000 euros for this type of financing as we are not approaching a credit institution. In addition, it is necessary to specify the duration that we prefer for our repayment plan, which can usually take up to 48 months. Finally you must report the expenses that will be incurred with the amount you are requesting. In the event of termination of employment before full reimbursement, the employer will be entitled to recover the portion of money not reimbursed by the severance pay and the termination indemnities. To conclude the speech about business loans for employees, our advice before proceeding with the formal request is to address directly to your employer to present your need for money and try to agree on the possible methods of loan in payroll for liquidity .