Investment loan - what do I need to do to get it?
If most of you hear the word "credit", you will probably combine it with the term "mortgage". There is nothing strange about it, because it is one of the most popular services provided by banks. Sometimes, however, we forget that not only private individuals can take out loans for a given purpose - companies can also do this. Investment loans for companies are very popular and allow them to cover impossible investments on their own. What should be taken into account before we apply for such a loan on behalf of a company?
Purpose of the loan
As in any credit, including investment credit, it is very important to indicate the purpose for which we will allocate it. Without this, no bank will transfer funds to our corporate account. Interestingly, some banks also require very detailed information on how we will use the loan. We can treat this as a certain "business plan", which we will be accountable to the lender.
Own contribution - obligation
As in the case of personal loans, the company must also take into account the nature of its own contribution. Few banks deal with the total financing of investments for companies. This usually ranges from 70% to a maximum of 90%. If we do not have enough money to cover a certain part of the investment, we can also count on credit, but with one very serious disadvantage. Well, our possibilities for obtaining large amounts of money will be significantly reduced!
It is not without significance how long our investment loan will be spread out. For companies, this is an extremely important issue, as it allows them to plan their budgets for the coming years in a certain way. Usually banks grant loans for a period of several years (usually it is about 5 years), but in the case of large investments, we can count on a significant extension of this time. Sticking to the subject of time, it is also worth setting precise conditions for what will happen if we want to repay the loan earlier. It may seem like a good idea, but it may cost us a little more money than we would like!
An investment loan may be a commitment for a long time (even up to 15 years). Therefore, before concluding a contract, you should carefully read its terms and conditions in order to minimize the burden on the company. Be sure to pay attention to it: interest rate, additional costs (commission, insurance), repayment terms, amount of financing, collateral, length of application processing.
As you can see, the conditions for obtaining investment credit for companies are somewhat similar to those for private individuals. Often, however, it is essential for our company to be able to implement costly projects! We hope you already understand its importance for the future of your company!