If your company needs external financing, and after considering various options such as factoring, you have decided that the appropriate form of financing for your business will be a business loan or a business loan, we invite you to familiarize yourself with our ranking of business loans. In this ranking, we compared a few companies on the market that provide these financial products. When comparing loans and advances to companies, we took into account factors such as the commission charged by the bank or financial institution, and in particular, the APRC (actual annual interest rate) as long as such information was available – unfortunately it was available in the minority of the analyzed offers. The next analyzed factor was the maximum amount that can be borrowed, as well as the loan repayment period.
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The loan is uneven and depending on the needs of your business, you can choose a different form of financing your business. Currently, both banks and loan companies offer entrepreneurs various types of company loans. Among them you will find offers, among others:
- revolving loans in the company account,
- working capital loans,
- investment loans,
- mortgage loans,
- bridging loans,
- Lombard loans
- cash loans.
As you can see, the choice is quite large. So how do you decide which offer is best for your business? First of all, it’s worth using the company loan ranking, which allows for a quick and transparent comparison of offers from many lenders. However, this is not all. The choice of the final offer depends on many factors, but one of the most important is the cost of credit for companies.
How much does a company loan cost?
It is not easy to answer this question directly, because the total cost of credit for companies consists of several different fees. The most important of them include commission and interest rates.
The commission is a fee charged by the bank for granting and launching a loan. Its amount depends on the amount of credit you have obtained. The bank commission is a one-time payment, however, you can include it in the sum of the loan and pay it back together with monthly installments. However, in the latter case, you’ll also pay interest on the commission.
In turn, the interest rate on a company loan is a value that is used to calculate interest. The interest rate consists of two types of fees: a fixed bank margin variable rate. In the case of a margin, the matter is simple. Based on your company’s creditworthiness, the bank sets the interest rate that will apply throughout the loan period.
The variable rate issue looks a bit different. Its amount depends on the interest rates imposed by the Monetary Policy Council. If you take a company loan in PLN, your WIBOR rate will be your reference point. This is the interest rate applicable to the interbank market. In other words, it is the interest rate at which banks in Poland grant loans to each other.
The bank’s commission and interest rate are the main components affecting the cost of credit for companies, but not the only ones. What other fees should you pay attention to? They are e.g.
- fee for considering the loan application,
- early repayment fee,
- fee for the unused loan amount,
- various types of insurance (life insurance, low contribution, etc.),
- valuation of collateral,
- fees for preparing an annex, reminders sent, etc.
What to look for when choosing a business loan?
The cost of the loan is one of the basic factors that influence the choice of the lender. Don’t limit yourself, however, to him. When looking for the best company loan for your company, pay attention to the following:
- what is the purpose of lending – is it financing your current expenses or an investment in the development of your business?
- how much money do you need?
- What is your company’s financial standing?
- what formalities do you have to meet and how long will you wait for the loan decision?
- What is the maximum loan term?
- Will you be able to take advantage of the grace period when paying off a company loan?
- do you need to have your own contribution, and if so, how much?
- What is the form of business loan collateral?
Only after analyzing these factors can you make an informed decision about taking a company loan that will suit your company’s needs and financial capabilities. Fortunately, you don’t have to search for this information yourself. You will find many of them in the company loan ranking.
Credit or loan for companies?
Although the terms credit and loan are often used interchangeably, they are two different financial products. First of all, the loan is only offered by banks. For this reason, it is slightly more difficult to obtain, while its conditions are usually more attractive.
On the other hand, the availability of loans for companies is much higher, and the formalities associated with them are smaller, and the procedures faster. Although the cost of such a loan may be higher than a bank loan, using the ranking of the best company loans, you will certainly find the right offer for your company.