Business Loans

Loan application for start up of a business



Anyone who wants to finally fulfill their dream of becoming self-employed starts a company. Of course, this project must be carefully considered in advance and financial planning is also required. Depending on what kind of company it is later, different financial resources are required. The self-employed, who of course only want to work as freelancers from home, generally do not need large financial resources.

A lot of money is usually required

A lot of money is usually required

But if you want to found a real company with premises, office supplies and other necessary purchases, a lot of money is usually required. Of course, anyone who has saved in advance for starting a company or has made enough money in the past no longer has to worry about financing. But there are also a relatively large number of people who have to take out a suitable loan to set up a company.

If you are in such a situation after all, it is a real vicious circle. On site, at the numerous banks, as a business start-up you usually do not get any credit for starting a company. Without sufficient security, such as proof of income or wages, the situation is virtually hopeless. Branch banks grant a cheap loan that can be used to set up a company only if they receive certain guarantees and do not take any risks.

The situation is not hopeless

The situation is not hopeless

As an independent borrower, you cannot expect a loan from a local bank, but there are numerous lenders on the Internet that are a lot easier to convince. While certain types of collateral, excellent creditworthiness and non-existent negative Credit Bureau entries usually play important roles, direct banks also have the option of choosing alternatives as collateral.

So there is still a cheap loan that can be used to set up a company and also approved. Of course, the self-employed have to resort to alternative forms of security, such as a very good guarantee or equivalent security. If you can prove this security to the direct bank, there is usually nothing standing in the way of a loan approval. A cheap loan for founding a company is therefore easily possible.

Favorable interest rates and individual conditions

Favorable interest rates and individual conditions

Anyone who has opted for a cheap loan that can be used to set up a company can benefit from very low interest rates and profitable conditions. Internet banks enable their borrowers to make a relatively simple application online. After the self-employed have filled it out and used it with the direct bank, you only have to wait a relatively short time until you find out about the approval. Even a larger sum of money (10,000-15,000 USD) is possible via a cheap loan for the company foundation.

In addition, low interest rates, which range from around 3-6%, allow the self-employed to take out the loan over a very long period. So that the new company can start successfully and that there can be no problems due to the financial burden in the coming months and years, the self-employed worker should best opt ​​for a very long term of up to 120 months. So nothing stands in the way of professional self-realization.

Business Loans

Financing the family business: business loans

Households are sometimes faced with problems of business financing, particularly in the family context, whether for an SCI or a commercial enterprise. has details for clarification

Company financing and act of transfer of shares: the prerequisite for investment.

The sale of shares avoids the rigor and the very high costs sometimes associated with a capital increase, another method of investment within a company. If you do not use a bank loan, hosting an investor in your company may involve the sale of shares. In order to achieve this, a contract will have to be concluded. This contract for the transfer of shares will represent the seller, says the assignor, and the buyer, says the assignee.

The compulsory clauses of the act of transfer of shares.

It will be necessary to draw up an act of transfer of shares. This contract must include a whole series of mandatory information. Note that it will not be possible to welcome an investor within the LLC, by way of transfer of shares, only if the approval is voted by the partners (according to the conventions between partners).

First step: notification of the proposed transfer of shares.

Once the conditions for the transfer of shares have been determined, the approval procedure will have to be launched. For that, it will be necessary to inform the company, and the associates, of the project.

Second step: the partners’ vote.

Once the partners have been informed of the project, the manager will call a general meeting or the partners, gathered within this meeting, will have to vote on the project.

Third step: obtaining or refusing accreditation.

The partners’ vote must take place within three months after notification, otherwise approval will be automatically granted.

Fourth step: modification of the company’s articles of association.

The statutes of an LLC include a whole series of mandatory clauses. Among these are that establishing the list of partners, as well as that determining the distribution of shares between these partners.

Fifth step: Registration of the assignment.

Once the transaction has been completed, it will be necessary to register it with the corporate tax service (SIE). For the transfer of shares in an LLC, this registration will be made at the rate of 3%.

Corporate financing: the importance of pacts and conventions

Transferring shares to an investor will allow him to enter the company. However, it is from this moment that he can really finance the activity of the company, its development. However, this funding will not go through the transfer of shares in itself, but through other channels. Investors wishing to be remunerated could request that dividends to be paid to them as a priority (priority dividend clause). In addition to relationships between partners, corporate financing may go through current account contributions.

An agreement will determine the conditions of the loan, in particular the terms of its repayment. In particular, it will be possible to provide for interest on the loan in the form of interest, which will be deductible from the taxable income of the company. In fact, only a partner can, by definition, grant a current account to the company. However, the choice to use such a method of financing the company may cause the partners to lose control over their company.