In today’s market, business loans are tough to get a hold of in Sweden. They aren’t impossible to get a hold of, they are just tough to get a hold of. If you know and understand what banks and lenders are looking for in a quality small business borrower, it really is not that difficult to entertain those requirements.
Small business owners are always wanting more money than they can handle. Once you have decided the different aspects of your business that need funding, you can match that need with a business loan type. There are all different sorts of business loans that are available to the business owner.
A few example of business loans that your business can be approved for are:
Working Capital Loans – A working capital loan is a good short term loan to hire new employees, purchase new equipment, start a new project, etc. These loans are not meant to be held on for a long period of time. Once the project or building process is complete, the loan should be paid off as soon as possible.
Inventory Financing Loan – If your business has inventory laying around not being used, you can use that inventory as collateral to borrow funds. This would not be an unsecured business loan.
SBA Loans – The Small Business Administration whom is funded by the federal government offers loan guarantees to certified SBA lenders. You must go through rigorous qualification s in order to be approved for an SBA Loan.
In order to be approved for a truly unsecured business loan in Sweden, you must be able to prove to banks and lending institutions that you are a low risk small business borrower. Företagslån utan säkerhet are business loans where the bank approves you for a loan 100% based on your corporate foundation. Your corporate foundation is pretty much your corporate numbers. This includes your business credit scores, your business credit portfolio, your personal credit scores and portfolio, and your financial numbers.
What if the banks money was your money? Who would you approve for borrowing your hard earned money? Would you lend it out to a company that doesn’t have a business plan? Would you lend it out to a company that doesn’t have good credit scores? What about a company that isn’t cash flow positive? No, you probably wouldn’t. The reason why you wouldn’t do this is because you would be afraid that t you would not be paid back.
This same concept goes for Swedish banks lending to you and your small business. The fastest way to be approved for a unsecured business loan is to make sire you have all your ducks in a row. If you plan on applying for a business loan at your local community bank, ask the commercial loan officer what is needed to be approved for an unsecured business loan. This should give you exactly what you need to prepare.
Here are a few items I know for a fact you are going to need to be approved for unsecured business financing:
- Good business credit scores with all three business credit reporting agencies.
- A business plan that offers market research in your industry that proves you can be successful.
- Proper financial documents that can prove to a bank that you are organized and cash flow positive.
- Proper articles of incorporation in your state.
- A business address with a business phone number.