Business credit - Apply for business credit for your business

In a world where small businesses face financial challenges, access to capital is not just an advantage - it is a necessity. Corporate credit provides the financial flexibility and security needed for small businesses to grow and adapt to changing market conditions. Whether covering unexpected expenses or financing expansion plans, business credit can play a crucial role in the growth of your business. 

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

In 6 minutes or less you will learn how business loans differ from a business loan, the interest rate on business loans and what requirements there are for business loans. 

What is corporate credit?

Business credit is a so-called overdraft or overdraft facility that gives your small business more financial freedom and flexibility. It is a line of credit provided by a bank or lender where you use the money according to the needs of the business. 

Business credit can be crucial to a small business's finances because it allows for various investments, such as: 

• Capital assets
• Expansion projects
• Management of cash flow in different periods

With business credit, you can ensure that your business gets capital at the right time to support both growth and day-to-day operations.

Business loan vs business loan

Business credit is similar to a business loan in that your business gets a capital injection, but with one big difference - with business credit, you are granted an amount of money and you choose how much of that amount you then use. This is not how a business loan works, where you, the borrower, are required to repay the full amount borrowed, plus interest on top of that amount. With business credit, you only pay back the money you used, not the full amount granted. 

Business loan for start-up companies 

For a small business start-up, business credit can be indispensable - because new businesses may not always have an established credit rating or long business history, it can sometimes be more difficult to qualify for traditional business loans. This can make business credit a valuable and more flexible resource during the early and unpredictable days of entrepreneurship. 

Interest on business credit: what about it?

With business loans from traditional banks and lenders, you pay interest only on the money you use, as opposed to a business loan where interest is paid on the entire amount borrowed. 

At Qred, we do things a little differently - instead of interest, you pay a fixed amount per month for your business loan. So we have no interest or other fees; you pay the same fixed amount every month. Business loans with us have no term, and you only pay for the months you have the credit. 

This is how to apply for business credit from Qred

Business credit online at Qred is fast, secure and easy. Applying for a business loan is a smooth process that can be summarized in three simple steps:

1. Apply in one minute: Quick and easy application process. The application is free and without obligation, and we do not do a BKR check on you as a private person.

2. Get response within an hour: After you apply, we'll contact you within an hour - you'll get a decision on how much credit your business will get.

3. Same day payout: Sign with iDIN and receive the money the same day.

Common business loan requirements

When applying for business loans as a small business owner, it is important to be aware of some 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 Chamber of Commerce number.

• VAT number: The company must be registered for VAT.

• Business Time: Many lenders require that the business has been operating for at least six months to a year.

• Financial Health: The business must have a stable financial history with no debts to the IRS. Creditworthiness is usually assessed by a credit check.

• Turnover requirement: Some lenders may have requirements for the company's annual turnover, which often must exceed a certain limit.

It is also common that the owner or director of the business must act as guarantor, meaning he or she is personally financially responsible if the business cannot repay the loan.

These requirements are designed to ensure that the company is deemed capable of managing and repaying the credit, which reduces the risk to the lender. 

Small businesses with Qred

Business credit can make your small business run more smoothly by increasing financial flexibility - at Qred, we understand these unique needs of small business owners. That's why we offer customized financing solutions that are fast, flexible and without complicated terms. Our goal is to make financing simple and accessible, so you can focus on what matters most - running and developing your business. 

Whether you need help selling invoices, getting a business card, or want to learn more about entrepreneurship with our articles, we're here to contribute to your journey. Start Qred today, and good luck with your venture!

FAQs about business credit

What is corporate credit?

A business loan is a type of financing that gives businesses access to a predetermined amount of capital that can be used as needed. It is a flexible solution for managing cash flows or financing investments.

What are the requirements for an overdraft?

To get an overdraft, the business usually has to meet certain criteria, such as a stable financial history, operating time, and often a check of the company's creditworthiness. There may also be requirements for minimum sales and that the business has no debts to the Internal Revenue Service.

What does an overdraft cost?

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