Business Loan – Is it difficult to get it?
It is a company loan. The price of loans for small and medium- sized businesses should be higher.
Which is why it is more difficult for small businesses to get loans.
The Munich Ifo Institute regularly asks companies how they rate credit institutions’ willingness to lend. The resulting credit hurdle shows the percentage of companies that consider restrictive lending to be possible. Accordingly, German companies are now getting bank loans more easily than ever. Small companies (fewer than 50 employees or less than $ 10 million in sales), however, have a much more difficult time than large ones.
In small companies, it is often the case that overall responsibility can rest with the entrepreneurs themselves. Unfortunately, the commercial aspects of entrepreneurship often take a back seat. It is important for companies that they come to the fore. Therefore, they cannot set meaningful target values and do not know exactly where they stand with their company. As a result, they are unable to calculate reasonable target values. Targeted management controlling is not possible in this way.
Check house loan info
With a view to Basel III in particular, credit institutions now more than ever need reliable planning and indicators for their customers in the lending business. Small businesses usually only need small loans. It is all the more important for the house bank that the loan application is checked quickly and that all necessary information from the documents is available promptly.
You can read here what information should be included in credit documents. However, make sure that you really restrict yourself to the information that is important for the house bank.
A photographer recently complained to me that his application for a loan of $ 30,000 was rejected by all the credit institutions mentioned, even though he had a 100-page business plan.
From an economic point of view, it is more logical for the house bank to reject the loan from the start. In the current study, 20.7 percent of small businesses said they had difficulty lending. Conversely, this also means that almost 80% of small businesses today have no difficulty borrowing.
The permanent insight into the economic situation of your company and the creation of bankable credit documents are the basis for making your company one of those who can easily take out loans.