We also help startup companies!
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It has traditionally been difficult to get business loans to start-up companies and new companies. Since 2015, our main goal has been to help as many new small business as possible with the right kind of financing.
Therefore, it does not matter whether you have a new or old business. It also doesn't matter if you're small or big. Forget about the year-long history, balance sheets, profit reports and complicated business plans that the bank wants to see. At Qred, we care about you and your future plans. We may not be able to help you with a business loan right now, but you can always come back after a few months when the situation has changed.
We offer all types of business corporate loans. This is how a loan through Qred works:
The loan has...
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Start-ups may have difficulty obtaining bank loans due to high risk and smaller loan amounts, as banks prefer lower risk and larger loans to established businesses.
Qred believes that the requirement for financial statements to Bolagsverket in order to avoid start-up status may be unreasonable, as the first years are crucial for growth. Establishment loans are specifically geared towards business start-ups and it is important to plan carefully before applying to ensure the right amount and repayment schedule. Traditional bank loans are best suited for businesses with established cash flow, while Qred offers flexible options with less historical finance requirements and faster payouts.
Maybe you're considering starting a business? Or maybe you just started a new business? Unfortunately, lending money in the bank to a start-up business is not easy. Firstly, the risks are greatest at the beginning, before the business has started, and secondly, the amounts are quite small. The bank likes low risk and gladly lends large amounts to large companies. It's simply not worth the time the bank spends on start-ups.
A start-up company is a company that has not yet started operations or submitted its first financial statements to the Bolagsverket. Some banks even require three financial statements in order for the business not to be considered a start-up. We at Qred believe that this is wrong, as the first three years are the most difficult for a company. Then you may need temporary capital injections to grow. It's always a good idea to calculate your borrowing costs. For example, with the help of a business loan calculator.
Before applying for a business loan, you should have done your homework. What should your business be doing, how much money do you need to get started? How much can you repay per month? This you should think carefully so that you apply for the right amount and can clearly explain how the loan will be repaid.
In our Qred Score, we, like many other banks and lenders, rate limited liability companies as something positive. You've gone in with a share capital and there are usually several people in the company. You can also add someone who acts as a personal surety along with the loan applicant. This is called a surety, and our requirements for a personal surety are:
Payment notices do not prevent us from granting loans, but it can be an obstacle. You may be offered a lower amount at a slightly higher price before you have made any payments.
As a newly established sole proprietorship (ENK), it can be difficult to find the right type of financing. Usually, you have a slightly smaller business that is seasonal or otherwise sensitive. Banks have traditionally struggled to offer affordable loans to sole proprietorships. It simply hasn't been profitable enough. At Qred, we believe that this is wrong, which is why we want to help the smallest and start-up businesses with financing. We do this by offering smaller loans, and in this way we get to know each other and can increase the loan in the long term.
As with any other loan from Qred, there is an advantage if you can get one or two people to bail out personally for the loan. That means you get a personal payment responsibility for the loan. If you and the other person have arranged finances, it will usually be easier to get both the loan amount and the fee for the loan covered.
As mentioned, Qred can help all types of companies with financing. We look very favourably on two people sharing responsibility between a commandertist and a complementarian.
When applying for credit to a start-up company, a credit check is often made by the company. It is very rare for the credit rating to be particularly high, as the credit reporting agencies have no history to base the rating on. As a company, you deserve a high credit rating by having a stable and predictable turnover and profits and avoiding any form of payment default.
We at Qred have our own QRED score, which takes into account the business concept and the people behind the company. Call our agents for a professional appraisal and a quick credit decision.
Almost every day, someone calls in to Qred and asks if they can get a loan to fund their start-up business. The first thing we ask is whether the company is registered with Bolagsverket (i.e. that there is a valid organization number). Next, we try to find out where the business is located in the development and what needs it has. Business loans are an important part of financing, but there are often several sources of financing that you should consider to put together a solution for your business that can help you meet both short-term and long-term needs.
There are some obvious questions you need to ask yourself before you start raising startup funding, namely:
1. Own funds
Many entrepreneurs do not want to mix private finances with corporate finance. It is a good idea, but at the beginning it is you who have the best insight into the business idea and its potential, and therefore it is you who can best assess the risks. Therefore, you should always be prepared to invest some of your own money to get started. It's also a strong signal to banks and other lenders that you believe in your business idea. Remember that 99% of all businesses are financed with their own funds!
2. Traditional sources
The traditional Norwegian big banks rarely lend money to small businesses, especially start-ups, unless the owners already have a long track record and a strong personal relationship with the bank. They often require collateral in the form of real estate or personal guarantees. A traditional bank loan can usually be set up with a long repayment period of 3-5 years, but it usually requires a long process with high collateral requirements and, in some cases, expensive establishment fees.
3. Factoring
Another option is to sell your invoices, something that is now often used as an alternative or supplement to traditional business loans. Factoring works well for small amounts and shorter periods and is usually quick and easy, but usually more expensive than business loans.
4. Alternative business loans through digital channels
The quickest option now is a digital service that sprang up in the wake of the financial crisis, when banks largely stopped lending money to small business. These digital players usually have lower costs than the big banks and have simplified the application process so that it can be completed in minutes online. Traditional factors such as credit rating and business performance still play a role, but new social factors such as website quality, web traffic, social media presence and rankings on comparison websites combine to give a better picture of the business and its potential to repay the loan.
What does it take to get a loan application approved? Typically, these alternative lenders will want to see a well-ordered personal finances, understand the business idea, understand why the loan is needed and how it will strengthen the business. A good creditworthiness (no residual debt, no payment notes and stable income) increases the chances of getting a loan.
It is not easy to start your own business, but it can be even more difficult to get a profitable business up and running without capital. Marketing, machinery, premises and staff, after all, cost a lot of money, but are crucial to the future of the company.
So to make your business grow, you need to add capital to the business. Fortunately, there are a number of financing options if you do not have the opportunity to invest your own money.
Below you will find three ways to finance your startup business and the advantages and disadvantages of them.
Corporate loans are the most common form of corporate finance today. With a business loan, businesses can borrow a lump sum that they can use for optional investments, such as machinery, premises or salaries of employees, to grow their business.
The loan is paid back according to a fixed amortization schedule, either daily, weekly or monthly, along with interest and other costs.
There are usually two different types of business loans:
Pros and Cons of Business Loans
Advantages:
With a business loan, you can quickly get capital into the business and pay it back at a pace that suits you. In addition, you can apply for a business loan to avoid a strain on your and/or your company's creditworthiness.
Disadvantages:
Not all lenders offer loans to new businesses. This is due to the fact that many start-ups have not yet reached a stable turnover. If the enterprise has an uncertain economy and low income, the risk for the lender increases, which can lead to a high interest rate or refusal of the application. Qred is trying to find solutions to help even start-ups.
Venture capital is a popular form of investment in which individuals or companies invest money in start-up businesses. In exchange for the capital, they get a share of the company, which means they get to take part in future profits.
As the name implies, this is a form of investment that is associated with high risk. Therefore, it is suitable primarily for start-up companies with great growth potential in the near future.
Advantages and disadvantages of venture capital
Advantages:
You get a large amount of money into the company that you can use to drive the business forward. If you find an investor with good business skills, you can also get a good partner who wants the company to develop in the right direction.
Disadvantages:
You are giving away part of your business, which means you can no longer make decisions on your own. Read more about venture capital if you are interested in this financing option.
Crowdfunding - or mass financing - involves ordinary private individuals investing a small amount of money each to fund a business or project they believe in. The concept originated in the United States, but in recent years has become a global phenomenon.
Advantages and disadvantages of crowdfunding
Advantages:
If your startup company is developing innovative products or services, crowdfunding can be a good option for raising capital. It can also be a good way to promote your business to the right audience.
Disadvantages:
Many platforms may take a commission on the contributions collected to the project. Crowdfunding is not suitable for all businesses, especially those developing new inventions.
1. How does Qred assess the risks of lending money to start-ups without taking a credit check on the individual applicant?
Qred assesses the risks of lending money to start-up businesses using a credit check. By focusing on a company's future and plans, they can offer financing without making demands for cumbersome historical data.
2. What strategies does Qred offer to make it easier for start-up businesses to get financing, especially in terms of avoiding complicated business plans and historical balance sheets and profit reports?
Qred offers a simple application process that only takes 1 minute, with a response within 1 hour and payment on the same day. In addition, their loans have no start-up fee, tie-in time or hidden costs, making it easier for start-up businesses to access financing.
3. What types of collateral do traditional banks typically require to provide loans to start-up businesses, and how does this differ from Qred's approach?
Traditional big banks typically require collateral in the form of real estate or other types of guarantees to provide loans to start-up businesses, which differs from Qred's approach, in which they focus instead on the company's potential and creditworthiness.
Good luck with your business!
Founded in 2015 by entrepreneurs for entrepreneurs, Qred offers Norwegian entrepreneurs a new and different option for corporate finance. Today, Qred is the market leader in the Nordic region, something we are very proud of.
We launched our services in Norway in 2022 and have helped thousands of Norwegian entrepreneurs. Our friendly and experienced team understands the challenges and needs of business owners and we are proud to be one of the highest rated business lenders on Trustpilot.
We help you find the solution that best suits your business.
Kristina is responsible for the Norwegian market and has a broad background in banking and finance with over 5 years in Nordnet. She holds a bachelor's degree in marketing and management from Innlandet University College. Kristina helped to start up the Norwegian market from scratch in January 2022.
