Growing your business is a key goal in the minds of every entrepreneur reading this article. Whether it's having cash to seize an opportunity or making an already determined acquisition, the entrepreneur always needs funds to achieve his goals. Lica explains to you how to quickly obtain business credit and above all what are the advantages of the solution we offer.
How to get a business loan?
Obtain an SME loan can seem like a long and tedious process. However, the process is just as easy as when applying for a private loan. Contrary to popular belief, you will only be asked for a few documents to carry out an initial analysis. Then, and if you are eligible for business credit, you will be asked for some additional documents. But do not panic ! Lica is by your side throughout the process! Here are the different steps to follow to obtain a business loan.
1. Make your request
The first step is to perform your SME credit application. The operation should not take more than a few minutes. Especially if you already know how much you want to get. If necessary, you can immediately complete your request using the following link:
Contrary to popular belief, a business credit application is made up of only about ten questions. These are mainly related to the contact details of the company and the general information of the applicant. There is therefore no question of preparing certain documents at this stage!
2. Send the documents requested by the SME credit specialist
Upon receipt of your business credit application, a specialist will first study your file. According to the information received during your request and those available in the Teledata register (CRIF), he will be able to define which documents will be requested from you. Here is a non-exhaustive list of documents that are generally requested to determine the company's borrowing capacity:
- Annual accounts (balance sheet, profit and loss)
- A statement from the company's main bank account
- The last taxation of the company
- A copy of the identity document of the administrator(s)
Depending on the information analyzed in this first list of documents, the business credit specialist may ask you for additional supporting documents in order to improve the quality of your file. At Lica, our main goal is to get you financing on the best terms possible. Therefore, a request for additional documents is often made to improve your chances of obtaining the desired financing.
3. Answer any additional questions
Based on all the documents received and analyzed, business credit specialist will certainly ask you a few questions to clarify the situation. These are often questions relating to account transactions. These cannot always be understood without explanation.
When making a decision to grant financing, lending institutions need to be sure that the business is healthy and that the business outlook is good. This is the reason why it is always preferable that your credit counselor from Lica have all the cards in hand to prepare your file before submitting it to the lending organizations.
4. Have a little patience 😅
When we have a project to do or an urgent situation to be resolved, we would like things to move forward very quickly! However, it is important to understand that a lender does not have the same priorities as a borrower. Indeed, a company wishes to achieve a specific objective as quickly as possible by receiving funds. However, the lender's objective is to obtain good profitability on the loans it grants to its customers. Since speed is often a source of errors or misinterpretations, it is therefore natural for the lender to take some time to correctly analyze a company's situation.
At Lica we are fully aware of your priorities. This is why we are committed to processing your file in record time. Our process being totally digitized, the people involved in your file can put together your file very quickly before submitting it to the lending establishments. Once deposited with the banks, we carry out a meticulous follow-up of your file until the obtaining of the loan.
The advantages of SME credit
A company can obtain funds in different ways. Here is a graph that summarizes all the possibilities for a company to obtain cash. Each of these funding sources will offer advantages and disadvantages depending on your business situation. In this chapter, we will introduce you to the advantages of business credit.
Unlike the various sources of financing explained above, business credit is a quickly accessible solution. In addition, the amounts committed are often higher compared to internal funding sources. As for the comparison between debt financing or equity financing, credit SME requires less or no supporting documents in the medium and long term. Indeed, financing obtained through an investor or a bond issue will require the company to regularly report and report on these activities until the amount committed is reimbursed. On the contrary, a business loan, once granted, will no longer require you to justify the development of your activities.
Credit benefits for businesses:
- The amount that can be borrowed is often higher
- The subscription process is relatively quick
- The interest rate is between 2% and 9%
- The repayment term can be up to 7 years
- No need to justify the reason for its loan in time
According to these 5 advantages, business credit is therefore an ideal solution for entrepreneurs who want quick and easy access to cash. Depending on the situation of your business and your needs, the business credit specialist at Lica will guide you in any case on the most appropriate solution. Take the time to make your request without obligation and we will determine with you what your borrowing options are.
The 2 conditions for obtaining a business loan
As with all types of financing, a business must meet certain criteria before it can take advantage of a business loan. Here are generally the two points to respect to ensure that you obtain financing:
- The company must exist for at least 2 years
- The turnover must be equal to or greater than CHF 100,000.-
These two conditions are the only really determining rules for the study of your file. This implies that a company that has a lawsuit or a loss in the current year could very well obtain financing after analyzing its situation.
What if my company does not meet these criteria?
In this case, it is possible to direct you to a private credit solution. This will make it easier for you to obtain cash while your business can meet the two aforementioned criteria. A private credit, depending on your situation, can enable you to obtain between CHF 5,000.- and CHF 400,000.-. This is a significant sum with which you can move forward on your goal.
Develop your business with Lica's business credit solution
A business loan offers you a very interesting opportunity to develop your activities. Although there are other sources of financing, business credit remains the best solution for quick access to cash.
Whether your goal has already been set or you are still hesitant in your project, take the time to carry out your SME credit application with Lica. Our specialists are there to advise you free of charge and without obligation. This will make it easier for you to find the best solution. This, while knowing beforehand what is the borrowing capacity of your company.
The earlier you start your application for business financing, the sooner you can position yourself on a new opportunity. As an entrepreneur, you certainly know the importance of being able to act quickly when an opportunity arises. By relying on the services of a neutral and independent intermediary like Lica, you will be sure to be perfectly advised and to benefit from the best business credit solution in Switzerland.
Do you have questions before applying for an SME loan? Our advisors are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!