In addition to private customers, the banks also look after a large number of corporate customers, most of which are banks’ own business lines. In addition to financial investments and the checking account, most banks naturally also offer various types of loans and forms of financing for such business customers. A loan that is very important for many customers is the business start-up loan, which is often only referred to briefly as a start-up loan.
For quite a few self-employed, freelancers or young company makes such a start-up loan is a very important jump start when it comes to the construction of the planned activities. However, the banks are very precise when it comes to checking who receives the start-up loan at all. But the potential borrower should also pay attention to a few points before deciding on a business start-up loan.
What requirements should the loan seeker meet?
In order to receive a start-up loan, the loan seeker must meet a number of requirements. Because especially in the start-up phase, there is still a relatively high risk that the planned business will not lead to the expected success, so that the banks take on a not inconsiderable credit risk when granting start-up loans. Therefore, not only the creditworthiness of the loan seeker as a person is checked, but also the business idea and any existing business figures are analyzed in detail. In any case, the borrower must first be of legal age and have credit bureau information that does not contain a negative entry. In addition, banks almost always require a business plan to be submitted, especially when no concrete business figures are available. The business plan should show that the business idea has prospects and that the concept is also financially and economically coherent.
What should loan seekers look for when starting a business?
The credit check is on the one hand, but on the other hand, the loan seeker also has the right to place several offers side by side. When comparing the various start-up loans, individual conditions should therefore be considered. The most important loan condition is also the effective annual interest rate for the start-up loan, which the borrower then generally has to pay to the bank over many years. Especially in the case of young companies or the self-employed, you often have to reckon with every euro in the first few years after starting your own business, so that even a small saving in the interest rate can be very helpful.
Therefore, the offers should be compared intensively and the loan seeker should not be afraid to negotiate the interest rate. Other noteworthy loan terms for the start-up loan include the possible terms, possible fees, of course the loan rate and any collateral required by the bank.