Anyone who wants to apply for and take out a loan should first deal with the individual criteria of business loans. Because these can decide about a lot of money. For this reason, a comparison is important. Finally, each loan sets an interest rate that indicates how much you have to pay off along with the loan amount. In order to recognize cheap business loans, a comparison is important. After all, nobody wants to pay too much.
The most important facts at a glance:
- In the case of a business loan, you can choose between a planning, framework and installment loan.
- Those conducting a business loan settlement should pay particular attention to interest rates, fees and flexibility.
- As a borrower you usually have to show a regular income and may not have a negative private credit entry.
1. Three different loans: Which one is best?
First of all, you should know that business loans have three different types of loans that can always be used for a different purpose:
- On the one hand there is the credit overdraft overdraft. Here the bank grants a loan to cover the current account. The amount of the loan is usually three times the monthly net wage. However, the interest rates are very high and usually vary between nine and 13 percent. It is therefore suitable only for bridging for a shorter time.
- On the other hand, you can also get a installment loan. In contrast to the credit line there is a fixed interest rate and monthly installments, which always remain the same. The terms usually vary from one to six years. The loan amount, however, can often be selected between 1,000 and 50,000 euros. The installment loan is available immediately. Incidentally, a business loan comparison is particularly worthwhile here, since the interest rates differ from bank to bank.
- In addition to these two loans, however, there is also the framework loan. This is a separate form of installment loan and is also called call or vario loan. This is because it is available directly on demand. The interest rate and the repayment are hereby agreed. It is partly about the amount of the deducted amounts.
2. What should you look for in a business loan comparison?
Anyone who finally decides on a type of loan should always pay attention to a few aspects when making a business loan settlement. Incidentally, a [loan calculator] can also be advantageous for this purpose. Here you should enter the loan amount and the term to find out the interest rate.
Thus, we would also be right at the first point: the interest rate. Here, above all, the effective interest rate is important. Because this contains both the processing fee and the amortization as well as various other costs and fees that will be incurred.
Furthermore, one should also look at the flexibility. Because only this makes it possible to find cheap business loans. Thus, the early loan repayment or the replacement of the loan should be possible, and preferably free. This is important because it can save interest and therefore money. Often, however, the so-called prepayment penalty applies. Here you should compare the costs of banks in a business loan comparison.
You should also be able to make special repayments. These should also be best offered for free. It is advisable to look at how the bank reacts if you can not repay a monthly installment. Some banks charge no additional costs here. This is of course very beneficial and should be evaluated positively in the favorable business loan comparison.
3. What requirements do borrowers have to meet?
Of course, not everyone can get a business loan. This is because the banks want to hedge, so they get the money back. Often, a minimum requirement is a regular income. However, this does not necessarily have to come from a permanent job, but can also be part of the additional income. Some banks also have their training content here. This is therefore a little different from bank to bank.
In addition, banks often require that there is no negative private credit entry. In addition, there are often other requirements that must be met as a borrower to obtain a business loan. Above all, a good credit rating is important. Because this also has a big impact on the interest rate. In general, the better the credit rating, the cheaper the interest rate.
A business loan can often only be obtained through a credit check
So if you do not have a negative private credit entry and a steady job with regular income, you can certainly get a loan. However, having a negative private credit entry does not automatically mean that no bank will grant a loan. It just means that you will have a harder time and that the interest rate will probably be higher. If you are interested, you can also use our online loan without private credit comparison.
4. 3 reasons why an online business loan comparison makes sense
Reason number 1: Great offer
The first reason relates primarily to the question of why a comparison is even important. This is because there is a wide variety in the market. So there are many different banks and credit institutions that offer business loans. However, these always require different fees and are sometimes designed very differently in terms of flexibility.
Reason # 2: Find cheap business loans
By a business loan comparison you can also find the cheapest loans. Because, as already said, the conditions vary from bank to bank. Therefore one meets high interest rates and sometimes low ones. Thus, a loan terms comparison is also important to find cheap business loans.
Reason number 3: Faster and easier
The last reason, however, refers in particular to the online comparison. Usually you go from bank to bank and get the individual offers directly on site. However, this is very time consuming. Therefore, an online business loan comparison makes sense. After all, this is easier and faster. In addition, it can be seen by all credit providers in an overview, since they are usually listed in a comparison. This often takes into account all the important details.
Any amount of money can be saved with a business loan comparison.
5. What should be included in the loan agreement?
In addition, we also looked at what belongs in a loan agreement. These include, on the one hand, the provisions regarding repayment. The term and the credit rate have a not insignificant influence on this. Because the longer the term and the lower the credit, the more you pay afterwards.
On the other hand, it is also important that the costs of residual debt insurance are included in the contract. By the way, this insurance gives banks the necessary security in case of unemployment or death of the borrower.
6. The conclusion: Compare worthwhile
In conclusion, we can finally say that a business loan settlement is definitely worthwhile. After all, there are not only diverse providers, but also different types of credit. It is important to pay attention to the conditions, in particular the favorable loan interest and fees, as well as the flexibility. They can be easily determined by a loan interest comparison. But you should also look at the requirements in advance. Because most banks require a regular income and a positive private credit score. There are often other requirements. Overall, one should therefore be able to demonstrate a good credit rating. As a result, you have better opportunities for a loan and better ways to find a suitable and cheapest possible offer.