Investment loan – what is it?
An investment loan is a type of loan granted to companies to pay for new investments. This type of financing is characterized, above all, by the large amount of available amounts – it happens that banks do not set an upper limit on the amount of investment loan. To get a loan, a company often has to have its own contribution – most often it ranges from 20 to 30 percent. investment value.
Some financial institutions offer an investment loan without own contribution. The most well-known are investment loans granted by Credither or MyBank. Both banks cover 100% of the investment value.
We have it at SumMoney: Cash loan – list of offers
Investment loans for companies can be granted for up to 20 years if your company chooses a long loan period. This option brings a lot of benefit – you can repay the loan before the end of this period, and often a periodic grace period in paying off capital installments is also possible. There are also short-term (up to one year) and medium-term (from one to three years) loans available on the market.
Investment loans can be used by the entrepreneur only for investment. With this financial instrument, companies can afford, among others to buy:
- machines and devices used for the production of goods,
- real estate that will belong to the company,
- means of transport,
- know-how, licenses, patents and copyrights,
- computer equipment and other items needed to provide services or produce goods.
With the help of an investment loan, you can also finance the purchase of shares in another enterprise or purchase of securities.
Investment loan – how to get it?
Getting an investment loan is not difficult. Before choosing the right offer, talk to an advisor or financial expert who will be able to assess your investment risk and help us choose the right product for your business needs.
It is worth comparing products available on the market and use ready-made hints. The ranking of investment loans and the investment loan calculator give us the opportunity to combine all options with each other.
It will be useful to you: Cash loan installment calculator
When you choose an investment loan, the bank will ask you to prepare the necessary documents in the next step. The list of certificates needed may vary by institution. Most often, however, they will be:
- Business plan – the most important of all documents. He is the one to convince the bank that the investment will be profitable and your company will be able to pay off the debt.
- Registration documents depending on the legal form chosen. It may be an excerpt from the National Court Register, a certificate of entry in the business register, a certificate with REGON number or a partnership agreement.
- A set of financial documents depending on the chosen form of taxation, among others PIT-36 declaration, testimony about the amount of revenue obtained or balance sheet and profit and loss account.
- Additional documents, such as an extract from company accounts or formal and legal documents of the enterprise.
Investment loan – conditions
The basis for receiving an investment loan is a well-written business plan. If you can convince the bank that you will manage your borrowings well, you have already done most of the work. Which is surprising – the investment loan is intended not only for companies that have been on the market for a long time, but also for those newly created.
When applying for an investment loan, it is important to remember to secure the loan and prove the company’s revenues.
An investment loan for new companies can be paid out from the first day of business. In this case, it is enough to provide the bank with estimated revenues that our company will achieve.
Investment loan cost – Regardless of the lender’s choice, your business must take into account the cost of an investment loan. In many banks, the amount of commission is set individually, but most often it ranges from 0 to 5 percent. To this should be added the bank’s margin (depends, among others, on credit conditions, creditworthiness or type of collateral), a preparation fee and a commission for early repayment.
Of course, some banks wanting to retain customers often give up charging additional fees, so it is important not to use the first better offer on the market and know the conditions of most of them in order to be able to negotiate with the bank.
Good to know: What documents will you need to be able to get a company loan?
Investment loan interest rate – in many banks the interest rate depends on the creditworthiness of the company or is based on the Euridor 1M, 3M or 6M rate (depending on the selected interest period). The interest rate on the investment loan will in many cases be tailored to the needs of your business.
Investment loan for companies
The main advantage of investment loans is the possibility getting extra cash, which will contribute to the development of our business. Due to the fact that investment loans for small companies have appeared on the market, virtually anyone can benefit from this type of financing. An investment loan for the purchase of real estate has become one of the most popular forms of credit.
Enterprises that are thinking about buying a flat, warehouse or production hall are eager to use offers prepared by banks. Unfortunately, institutions granting loans for the purchase of buildings require a number of documents confirming the creditworthiness of the company and appropriate documentation that this investment is necessary to improve the functioning of our company.
The type of security is also an important element. Most often it is a blank promissory note, bank account block, real estate mortgage entry or assignment of receivables.
Before your company decides on an investment loan, it is worth checking the loan repayment terms and the maximum amount of investment financing. Also, don’t forget about products such as ranking, calculator or investment loan comparison. As an entrepreneur, you know that every zloty counts.