Need a springboard to launch your business? Find out about the business loan that will make it easier for you to get started. Small Business Trade Credit is one of the best financing options for your business, as it provides a number of significant benefits.
The most common financing solutions used by SMEs
As the owner of your business, it is only natural that you are looking for the best financing solutions. SME credit is, as such, one of the most practical corporate financing options. Get a business loan for your SME and enjoy all the advantages that come with it. Credit for SMEs is a more flexible possibility and offers higher amounts than conventional loans.
Managers of SMEs looking for a financing solution often resort to traditional solutions offered by banks. By opting for business credit, you can choose the amount requested as well as the duration of the loan. You have :
- The operating credit. These are solutions that work directly in relation to the current account of the said company. Note, however, that a line of credit also means fairly high interest rates in general. However, everything will depend on market conditions.
- A second option is to opt for medium or long term financing. These are most often loans or leases, especially if the object of the request is the purchase of a vehicle. This time, the interest rates are more advantageous overall.
Choose SME credit as a more effective solution
Le crédit entreprise est une solution spécialisée et innovante qui permet aux PME d’obtenir des financements en adéquation avec leurs besoins, sans devoir passer par sa banque. Un organisme de financement privé peut parfaitement faire l’affaire pour obtenir un crédit avantageux. En choisissant cette alternative, le client a la chance de bénéficier d’une expertise en matière de crédit. Le crédit entreprise est l’équivalent du crédit privé qui n’était autrefois octroyé qu’aux particuliers.
The difference between conventional offers and new business credit solutions for SMEs is that they offer more flexibility, a more attractive cost and a sought-after simplicity. These differences have been carefully studied in order to compete with the solutions generally offered by traditional banks.
Why is business credit a good solution for an SME?
New private credit financing solutions for SMEs offer many particularly advantageous opportunities. Here are these famous advantages of business credit:
1. Business credit is more flexible
When you take out business credit, rest assured that you will be able to enjoy free use of the money credited. In addition, you are responsible for choosing the repayment period and you will have the option of repaying early if necessary. Note that early repayment allows a considerable reduction in interest.
2. Business credit is easy to set up
If you don't like complex paperwork and procedures, you'll love business credit! Indeed, here the administrative procedures are greatly simplified, which makes life easier for borrowers. Responses from establishments are generally very fast!
3. Business credit is not expensive
En termes de coût, vous aurez tout intérêt à souscrire un crédit entreprise ! Vous pourrez en effet emprunter de CHF 50’000.- à CHF 5’000’000.- selon vos besoins. Les conditions de prêt sont souvent avantageuses et vous jouirez d’une durée fixe, d’un taux fixe avec des mensualités fixes. Tout est fixe, aucun surplus de coûts, donc aucune mauvaise surprise !
As a borrower, you can therefore benefit from clear budgeting. Controlling costs is an important element for the good conduct of your business.
How business credit works
Here are the 2 possibilities available to you when applying for business credit:
- Effectuer une demande de crédit auprès de votre banque actuelle. Cette dernière étudiera votre dossier de manière approfondie et vous devrez attendre de nombreuses semaines avant de recevoir une réponse. Le prêt se fera généralement sous la forme d’une ligne de crédit (découvert sur le compte courant) que vous pourrez utiliser pour financer les achats convenus avec votre banque.
- La deuxième solution, bien plus pratique, sera de solliciter l’aide de Lica qui se chargera d’effectuer les démarches pour vous. En tant qu’intermédiaire indépendant, nous solliciterons l’ensemble de nos partenaires pour vous obtenir la meilleure solution du marché. Vous obtiendrez alors un financement PME sous la forme d’un crédit et vous serez donc libre d’allouer les fonds selon vos besoins et vos objectifs.
What rate is applied on a trade credit or a business loan?
As a reminder, the amount of the loan or business credit can go up to the sum of 5 million francs. Rates generally start from 2.95 %.
What are the reasons for taking out a business loan?
SMEs take out trade credit for x reasons, as long as it goes into the development and improvement of your business. You may need to take out a business loan to improve your company's operating systems, to modify your computer equipment, to renovate your offices and refurnish them or to acquire a professional vehicle. Each of these examples represents a considerable cost and it is always better to finance the necessary sum for a given project, rather than to dip into the reserves of your company.
The conditions necessary to obtain a business loan
You will need to meet certain criteria in order to be eligible for trade credit. The conditions always aim to become more flexible, nevertheless financial organizations always prioritize companies that have already existed for at least a year, in favor of those which have just been created or who want to start their project. Overall though, you'll need a few things:
- a full year review;
- be able to demonstrate that the business is profitable;
- not have any lawsuits pending on behalf of the company;
- a company registered with the commercial register ;
If you think you don't meet these criteria, don't worry! Lica also has alternative solutions which will certainly be of great benefit to you. Do not hesitate to call on our advisers who will be able to help you in your efforts and give you the best advice to obtain your financing as quickly as possible.
And in the event of a lawsuit, is business credit possible?
What if the business in question has a lawsuit? Know that there are many credit registers that banks consult in Switzerland. If you want your financing request to be successful, it is imperative that you are up to date with all your credit data. Lica will also assist you in your data cleaning procedures!
Our conclusion on SME credit
Lica dispose d’une large expérience dans le domaine du crédit PME et accompagne donc régulièrement des clients dans la réalisation de leurs rêves.
Comme pour tout type de financement, il conviendra toujours d’analyser avec le plus grand soins la situation actuelle d’une entreprise pour s’orienter ensuite sur la meilleure solution sans perdre de temps. Nous pensons donc qu’il est toujours préférable d’investir un peu plus de temps au début de la relation pour ainsi augmenter les chances d’octroi du crédit. C’est pourquoi, Lica favors in all cases a personalized approach to the question of credit and takes the time to know its customers.
Now that you know how business credit works, all you have to do is apply. With Lica it's simple, fast and efficient! And yes, you make your request online in less than 5 minutes and then our specialized teams will do the work for you. This saves you time and money!
Do you have questions before making your request? Our advisers are there to answer your questions 7 days a week. Ask us for more information and we will be happy to answer you.