Business credit - Get business credit for your company

In a world where small businesses face economic challenges, access to capital is not just an advantage - it is a necessity. Business credit provides the financial flexibility and security that small businesses need to grow and adapt to changing market conditions. Whether it's to cover unexpected costs or to finance expansion plans, business credit can play a crucial role in your company's growth.

In this article, we look at what business credit is and how you can apply for it for your business - stay tuned!

In 6 minutes or less, you will learn how a business loan differs from a business loan, the interest rate of a business loan and what the requirements are for a business loan.

What is business credit?

A business loan is what is known as an overdraft or account credit, which gives your small business more financial freedom and flexibility. It is a line of credit granted by a bank or lender, and you can use the money to meet your business needs.

Business credit can be crucial to a small business's finances, allowing for a range of investments including: 

• Capital goods
• For extension projects
• Managing cash flow at different times

With a business loan, you can ensure that your business has access to capital at the right time to support both growth and day-to-day operations.

Corporate credit vs corporate loan

A business loan is similar to a business loan in that your business receives capital, but the big difference is that with a business loan you are given a sum of money that you can use as much as you want. This is not the way a business loan works, where the borrower is obliged to repay the full amount of the loan plus interest. With a business loan, you only pay back the money you use, not the full amount granted.

Business credit for start-ups

For a small business start-up, business credit can be invaluable - as new businesses do not always have an established credit rating or a long business history, it can be more difficult to get traditional business loans. This can make business credit a valuable and more flexible resource in the early stages of a business and in unforeseen situations.

The interest rate on a business loan: how does it work?

With business loans from traditional banks and lenders, interest is only paid on the money used, unlike a business loan, where interest is paid on the full amount of the loan.

With Qred, we do things a little differently - instead of interest, you pay a fixed monthly price for your business loan. We have no interest or other charges, you pay the same fixed payment every month. Our business loans have no commitment period, and you only pay for the months you have credit.

How to apply for a business loan from Qred

Applying for a business loan from Qred online is fast, secure and easy. The application process can be summarised in three simple steps:

1. Search in a minute: a quick and easy search process. The application is free and non-binding, and we don't do a personal credit check.

2. Get an answer within an hour: after your application, we'll contact you within an hour - you'll know how much credit your company will be granted.

3. Same day payment: sign with BankID and receive the money the same day.

General requirements for business credit

When applying for a business loan as a small business, it is important to be aware of some of the basic requirements that lenders often impose. These requirements can vary slightly, but here are the most common among traditional lenders:

• Registered company: the company must be officially registered and have a valid business ID.

• VAT registration: the company must be registered for VAT.

• Length of operation: many lenders require that the business has been in operation for at least six months or a year.

• Financial history: the company must have a sound financial history with no debts in foreclosure. Creditworthiness is usually assessed through a credit check.

• Turnover requirement: some lenders may impose requirements on the annual turnover of the company, which often has to exceed a certain threshold.

It is also common for the owner or CEO of a company to act as a guarantor, which means personal financial responsibility if the company is unable to repay the loan.

These requirements aim to ensure that the company is considered capable of managing and repaying the loan, thereby reducing the risk to the lender.

Small business with Qred

Business credit can make your small business run more smoothly by increasing your freedom to move money around - at Qred, we understand the unique needs of small business owners. That's why we offer tailored financing solutions that are fast, flexible and without complex terms and conditions. Our goal is to make financing easy and accessible, so you can focus on what matters most - running and growing your business.

Whether it's help with selling invoices, getting a business card or learning more about doing business through our blog, we're here to support your journey. Get started with Qred today and good luck with your business!

Frequently asked questions about business credit

What is business credit?

Business credit is a form of financing that gives companies access to a predetermined amount of capital that can be used as needed. It is a flexible solution for managing cash flow or financing investments.

What is required to get an overdraft facility?

To qualify for an overdraft facility, a company usually has to meet certain criteria, which often include a solid financial history, length of time in business and often a credit check. There may also be requirements for a minimum turnover and that the company has no debts in foreclosure.

How much does an overdraft cost?

The cost of a business loan depends on the lender. With Qred, you only pay a fixed monthly fee for a business loan, while other lenders may sometimes charge both interest on the amount used and possible administrative fees.