Operating credit for businesses - Flexible credit from Qred Bank

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Operating credit for businesses

We offer operating credit to all types of businesses. This is how a loan through Qred works:

  1. The application takes 1 minute
  2. You will be notified within 1 hour
  3. The money is paid out the same day

The farm loan has...

  • No start-up fee
  • No binding time
  • No hidden costs

Welcome to submit an application!

Operating credit is a flexible financing solution that many businesses use to manage day-to-day expenses and improve liquidity. This type of credit is particularly useful for businesses that experience seasonal variations in revenue or have irregular cash flows. In this article, we'll take a closer look at what operating credit is, how it works, the benefits of using it, and key factors businesses should consider before adopting such a credit solution.

What is operating credit?

Operating credit, also known as an overdraft or operating loan, is a line of credit that the bank makes available to a business. Unlike a regular loan, where the borrower receives the full amount of the loan immediately and starts paying interest on the entire sum, operating credit allows businesses to draw up to a pre-agreed amount as needed. Interest is only charged on the portion of the credit that is actually used.

How does it work?

When a company establishes an operating credit, a maximum credit limit is set up based on the company's financial situation and needs. The company can withdraw funds up to this limit at any time, and can then replenish up to the limit as they repay used credit. This provides great flexibility in the management of the company's liquid assets.

Benefits of operating credit

1. Flexibility: Operating credit allows businesses to manage financial fluctuations without having to take out a fixed business loan every time a temporary need for additional capital arises.

2. Improves liquidity: It helps businesses maintain a stable liquidity even during periods of variable earnings.

3. Pay only for what you use: Unlike traditional loans, where interest is paid on the entire loan amount, businesses with operating credit pay interest only on the portion of the credit that is in use.

Assessments before using operating credit

1. Costs: It is important to be aware of all the costs associated with operating credit, including interest rates, set-up fees and any annual maintenance fees.

2. Risk of overspending: While flexibility is a great benefit, it can also be tempting for businesses to become too reliant on their credit, which can lead to financial problems.

3. Collateral requirements: Some banks require collateral to offer operating credit, which may include real estate or other valuable assets.

Executive summary

Operating credit is a very useful tool for businesses that need flexible access to capital to manage current expenses and maintain good liquidity. By only paying interest on the amount actually used, businesses can effectively control their financing costs. However, it is important that businesses carefully assess their financial needs and risks before establishing such a credit facility. Used correctly, operating credit can be a crucial tool to support a company's operational needs and growth opportunities.

About Qred

Our history

Founded in 2015 by entrepreneurs for entrepreneurs, Qred is one of Europe's fastest growing fintech companies, according to the Financial Times. Qred has delivered profitable growth from the start and is the market leader in the Nordics with Norway's most satisfied customers, according to Trustpilot.

Qred has operations in Norway, Sweden, Finland, Denmark, the Netherlands, Belgium, Germany and Brazil and has issued hundreds of thousands of loans to small businesses. A fully automated and proprietary credit scoring system allows Qred Bank to quickly and competitively provide entrepreneurs with the support they need to grow.

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Interested in business loans? Contact Qred Bank!

We love small businesses. Get in touch and tell us how we can help you and your company!
08:00 - 16:30 (Mon-Fri)