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Quick and smart business loan

How to get a quick and smart business loan

We know that it's a struggle to get financing for you comapny. Especially when you need a quick business loan to help your company grow and be profitable. That's is why we were created. Fast and smart corporate loans for small business owners are crucial for the economy.

Taxes and business loans

For owners of small-scale companies, a way to get a relatively low tax on withdrawals from the few-man company can be to raise interest on own money that is lent to the company. As long as the interest rate used is market-related, the interest rate will be taxed as income from capital of the entrepreneur at 30 percent capital tax. After tax, the entrepreneur can retain 70 percent of the company's withdrawal. The interest expense is deductible for the company.

Loans to the company where interest rate taxation almost always gives a lower taxation than salary and always lower tax than is due to dividends from the company for which the company first paid corporation tax.

Example: The company pays out 10,000 in interest to you. You pay capital tax by 30 percent. The tax will be 3000 kr and your net 7000, ie 70 percent. Let's compare with the lowest tax on dividends. If the company has 10,000 in profit, 2200 will always be paid in company tax. If the remaining 7800 can be given as capital taxed dividend, the recipient may retain 6240, ie. 62 percent remains of original 10,000.

However, you must borrow a right high amount to the company to get such interest. It may be against what else you could have invested your money in or where else you could have had interest on them or another return. Those who are careful can not put the interest rate higher than the government loan rate plus one percentage point when borrowing to their own company. If the paid interest exceeds the market interest rate - overrange - it becomes a completely different tax assessment. The Tax Agency considers that overruns shall be considered a disguised dividend. The interest rate will therefore be taxed according to the rules on tax on dividends in small companies.

This means that the overrente can be taxed in one of the ways that apply to dividends from few companies. The overpaid capital tax is taxed within the capital-taxed dividend. If the dividend has already been fully utilized in ordinary dividends during the year, the disbursed dividend will be taxed in the form of overruns as a special income from employment and placed on top of salary and other earned income when the usual tax is calculated.

The small companies are countries largest employer and account for 4 of 5 new jobs.

Unfortunately, half of small businesses find it hard to find external funding to grow and invest. Companies with 20 or more employees often use bank loans to grow business, but for the smaller companies it is very unusual. This indicates that the smaller companies have difficulty obtaining corporate loans from the bank. It writes Entrepreneurs in its latest funding report. But be aware of that you can start a business without a loan. Click here!

In many of the smaller companies, the business is funded with additions or loans from the owner, family and friends. Factoring may be an option for the slightly larger companies who regularly bill a large proportion of their sales. All this indicates that the banks have completely given the corporate loan market for the smallest companies. These companies are referred to other sources. Entrepreneurs suggest, among other things, that facilitating challengers to major banks to increase competition in the market.

According to SCB, there are about 1.5 million active companies. About 99 percent of all companies in the country are small businesses, that is, they have fewer than 50 employees.

Major companies generally default on 30-day payment time

Even though there is a law that states that the maximum may be 30 days' payment period, unless otherwise agreed, there is a greater tendency for large companies to default on the 30-day payment period and use small businesses as if they were a bank. Above all, smaller companies in Sweden find it difficult to borrow money from the big banks, increasing the need for fast, short-term solutions such as Qred. Therefore, it may be good to have a "backup", ie being able to borrow money quickly when needed or in growth.

According to Corporate Social Manager Patrik Nilsson, "Larger providers use small businesses as banks by extending payment times, as it benefits them economically." Business owners last year conducted a survey that showed that 20 per cent of companies estimate that payment times have been extended while 77 per cent felt that the situation was unchanged.

We, here at Quick Business Loans, says that "We offers corporate loans to all companies, even start-ups and individual companies can borrow. What the company needs is a bank account. We conduct a credit analysis and usually pays out the loan within 1 day. Maximum amount is 250,000. We want it to be as easy to take a business loan like buying a book online."

We offers corporate loans to all companies, even start-ups and individual companies can borrow

7 things that will conduct if you get a business loan or not

With some simple tips, you can improve your chances.

  1. 1. Risk vs. Ability As a lender, the worst thing is that the company can not repay its loan. One tries to estimate the risk of the companies failing to handle their payments. The fact that the company may have great possibilities is less interesting, as a value increase favors the owners, but at best, the bank will receive "only" back lending money. Read about 6 myths that get busted here!
  2. Thumbnail: Shareholders are more focused on opportunities, banks focus on risks.

  3. 2. Cash flow vs. Results The company's profit is nice. However, for the lender, it is more important that the company generates cash flow so that the company can handle amortization and interest payments. If the entire result eg being unlocked in accounts receivable and inventory, it will still cause problems with cash flow.
  4. 3. History vs. Future
  5. Many lenders look in the rearview mirror instead of forward. Why ask the sensible one. Statistically, it is clearly proven that it is less likely for companies with a long and stable history to go bankrupt compared with companies that have a short and / or broky history. Understanding and understanding the future of a company requires a great deal of understanding from the lender and that the borrower can present in a simple and credible way future plans.
  6. 4. Person vs. Business A company is never better than the people behind the company. A person assessment is therefore an important factor in understanding the company's risks. A sloppy person with eg Payment remarks therefore weigh much more negative than a private person with a good, well-organized and stable economy.
  7. 5. Expectations vs. hopes Many entrepreneurs are expecting the future to look much better. It is well in the nature of the entrepreneur. Unfortunately, these expectations are often hopes. As a loan applicant, you should display agreements in a simple and credible way and explain why your expectations are not just happy hopes. Read more in 15 ways to grow your business fast
  8. 6. Customer-dependent vs. customer confidence Is your company dependent on a small number of customers, or perhaps even a single major customer, which is the main part of sales? What happens if the company loses the contract? Show on appointment times and the customer confidence that your business has so that the lender feels safe in his analysis.
  9. 7. Order and save vs. Money until Friday Are you ready to figure in the numbers or are you out of hand with money that is enough for the week? Planning and predictability are as important to you as entrepreneurs, as it is for the bank.

Accounting for corporate loans

We get many questions about how to book corporate loans. Many small business owners manage their own accounts and wonder how to make corporate loans. It's easy to post if you uses a Fortnox, Visma, Speedleger or SPCS accounting system, and below is an example.

Book corporate loans from Company Loans

Our loans are short-term (less than 12 months) and must be booked on a 28-account, such as 2840. When you receive the loan on your company's bank account, you can post it as follows:

The earning loan / corporate credit is recorded in the same way, regardless of whether you use the corporate loan for salaries, stocks, investments or anything else.

Corporate loans from our Company Loans are recorded in the same way as short-term bank loans. If you are unsure, you should contact an accountant or your accountant.

Don't wait, apply for a business loan today!

It is fast, safe and really easy to get a business loan from us. Apply today!