Small and medium-sized enterprises (SMEs) are companies with annual sales of no more than EUR 50 million. This group makes up over 95 percent of all companies in Germany. With this high number, they are an important cornerstone of the economy in Germany, but also of large companies beyond the 50 million euro annual turnover. However, SMEs find it very difficult to get loans from banks. Especially in the start-up phase or rapid growth of the company, capital needs are inevitable and unfortunately rarely to be satisfied. Banks often hesitate because they need certain collateral that is hard to come by small businesses. BankFit does not provide large loans to SMEs with long maturities. BankFit offers a short-term loan, which only serves for an order bridging or a quick purchase of goods. The term is limited to 30 days and the loan amount to 10,000 euros. As a result, the credit criteria are different, as those, which are used by many banks. But more on that later.
Credit with little interest
That you have to pay interest on a loan is usually as clear as the morning follows the night. Interesting is the amount of interest, because it determines the price of the loan and must be included in the repayment. A loan with little interest is therefore a cheap loan and therefore easier to repay.
However, interest is also charged because the lender carries some risk when lending money to someone. This default risk is associated with losses that need to be balanced. Nevertheless, some loans have lower interest rates than others. A comparison is definitely worth it and should be made strictly.
Reasons why SMEs find it difficult to get credit from banks
- Credit: Banks assess your future ability to service the capital based on your current economic performance and likely future prospects for your business.
- Collateral: The require banks, in the event that your debt servicing capacity should fall during the repayment period.
These two points are important conditions to even make a request for credit at a bank. These two points condition and influence each other. For example, if the credit rating is high, the question of collateral and vice versa. But both are factors that depend in their ability to persuade much of the respective bank. It’s a vague haggling and the banks are very careful. What should one do, then, if one has only to handle an urgent repair or order bridging financing? Neither does one need a long-term credit with hard credit claims, nor a larger sum, such as, for example, if one needs a start-up fee as a self-employed person.
BankFit offers a solution
To get a loan from BankFit, you have to meet different criteria as a self-employed person than with banks. A credit check is essential for any reputable credit provider. In order to take advantage of our short-term self-employment loan, your company should have been on the market for at least a year, have a relatively positive regular cash flow, and spend at least € 50,000 a year.
Loan comparison for self-employed
The offer of BankFit is still unique in the B2B credit segment, because it is only a bridging loan for self-employed, as it is not otherwise offered. Only 30 days runtime, only manageable heights and no pre-costs. Try it on the calculator. Set desired amount and duration and go!