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We also help start-ups!
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It has traditionally been difficult to get business loans for start-ups and new companies. Since 2015, our main goal has been to help as many new small businesses as possible with the right type of financing.
That's why it doesn't matter if you have a new or old business. It also doesn't matter if you're small or large. Forget about years of history, balance sheets, profit and loss 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 businesses business loans. This is how a loan through Qred works:
The loan has...
Welcome to submit an application!
Start-ups may find it difficult to obtain 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 to submit accounts to the Swedish Companies Registration Office to avoid start-up status may be unreasonable, as the first few years are crucial for growth. Start-up loans are specifically aimed at business start-ups and it's important to plan carefully before applying to ensure the right amount and repayment schedule. Traditional bank loans are best suited to businesses with established cash flow, while Qred offers flexible options with fewer historical financial requirements and faster disbursement.
Maybe you're considering starting a business? Or maybe you've just started a new business? Unfortunately, it's not easy to borrow money from the bank for a start-up business. Firstly, the risk is greatest in the beginning, before the business is up and running, and secondly, the amounts are quite small. The bank likes low risk and tends to lend 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 accounts to the Swedish Companies Registration Office. Some banks even require three financial statements for the business not to be considered a start-up. At Qred, we believe 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 the cost of borrowing. For example, with the help of a business loan calculator.
Before you apply for a business loan, you should have done your homework. What will your business do, how much money do you need to get started? How much can you pay back per month? You should think this through 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, consider limited companies to be a positive thing. 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 guarantor together with the loan applicant. This is called a guarantor, and our requirements for a personal guarantor are:
A payment history does not prevent us from granting a loan, 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 (SPV), 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 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 over time.
As with all other loans from Qred, it's an advantage if you can get one or two people to personally guarantee the loan. This means that you will be personally responsible for paying the loan. If you and the other person have an orderly financial situation, it's usually easier to cover both the loan amount and the loan fee.
As mentioned, Qred can help all types of companies with financing. We take a very positive view of two people sharing the responsibility between a limited partner and a general partner.
When you apply for credit to a start-up company, a credit check is often carried out on the company. It is very rare that the credit rating is particularly high, as the credit reference agencies have no history on which to base their assessment. As a company, you deserve a high credit rating by having a stable and predictable turnover and profit and avoiding any form of payment default.
At Qred, we have our own Qred score, which takes into account the business concept and the people behind the company. Call our agents for a professional assessment and a quick credit decision.
Almost every day, someone calls Qred to ask if they can get a loan to finance their start-up company. The first thing we ask is whether the company is registered with the Swedish Companies Registration Office (i.e. that it has a valid organization number). Then we try to find out where the business is in its development and what its needs are. Business loans are an important part of the financing, but there are often several sources of financing that you should consider in order 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 to ask yourself before you start raising startup funding, namely:
1. Own funds
Many entrepreneurs don't want to mix their personal finances with the company's finances. That's a good idea, but in the beginning, you're the one who has the best insight into the business idea and its potential, and therefore you're the one who can best assess the risks. That's why 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 funded with your own money!
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 set-up fees.
3. Factoring
Another option is to sell your invoices, which is now often used as an alternative or supplement to traditional business loans. Factoring works well for small amounts and shorter periods and is typically quick and easy, but usually more expensive than business loans.
4. Alternative business loans through digital channels
The fastest option is now a digital service that emerged in the wake of the financial crisis, when banks largely stopped lending money to small businesses. These digital players typically 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 the quality of the website, web traffic, social media presence and rankings on comparison sites 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 credit rating (no outstanding debts, no payment remarks and stable income) increases the chances of getting a loan.
It's not easy to start your own business, but it can be even harder to get a profitable business off the ground without capital. After all, marketing, machinery, premises and employees cost a lot of money, but are crucial to the company's future.
So to grow your business, you need to inject capital into your business. Fortunately, there are a number of financing options if you don't have the means to invest your own money.
Below you'll find three ways to finance your startup and their advantages and disadvantages.
Business loans are the most common form of business financing today. With a business loan, companies can borrow a lump sum that they can use for optional investments, such as machinery, premises or employee salaries, to grow their business.
The loan is repaid according to a fixed amortization schedule, either daily, weekly or monthly, together with interest and other costs.
There are usually two different types of business loans:
Advantages and disadvantages of business loans
Advantages:
With a business loan, you can get capital into your business quickly and pay it back at a pace that suits you. In addition, you can apply for a business loan to avoid any strain on your and/or your company's creditworthiness.
Cons:
Not all lenders offer loans to new businesses. That's because many start-ups haven't yet reached a stable turnover. If the business has an uncertain economy and low income, the risk for the lender increases, which can lead to high interest rates or rejection of the application. Qred tries to find solutions to help even start-ups.
Venture capital is a popular form of investment where individuals or companies invest money in start-up companies. In exchange for the capital, they receive a share of the company, which means they get to share in future profits.
As the name suggests, this is a form of investment that is associated with high risk. Therefore, it is primarily suitable for start-up companies with high growth potential in the near future.
Pros and cons of venture capital
Pros:
You get a large sum 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.
Cons:
You're 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 finance a business or project they believe in. The concept originated in the US, but has become a global phenomenon in recent years.
Pros and cons of crowdfunding
Pros:
If your start-up is developing innovative products or services, crowdfunding can be a good option for raising capital. It can also be a good way to market your business to the right audience.
Cons:
Many platforms may charge a commission on the contributions raised for the project. Crowdfunding is not suitable for all businesses, especially those developing new inventions.
1. How does Qred assess the risk of lending money to start-ups without doing a credit check on the individual applicant?
Qred assesses the risk of lending money to startups using credit checks. By focusing on the company's future and plans, they can offer financing without requiring cumbersome historical data.
2. What strategies does Qred offer to make it easier for startups to get funding, especially in terms of avoiding complicated business plans and historical balance sheets and profit and loss reports?
Qred offers a simple application process that only takes 1 minute, with a response within 1 hour and same-day disbursement. Plus, their loans have no start-up fees, lock-in periods or hidden costs, making it easier for start-ups to access funding.
3. What types of collateral do traditional banks typically require to lend to startups, and how does this differ from Qred's approach?
Traditional big banks usually require collateral in the form of real estate or other types of guarantees to provide loans to startups, which differs from Qred's approach, where they instead focus on the company's potential and creditworthiness.
Good luck with your business!
Founded in 2015 by entrepreneurs for entrepreneurs, Qred offers Norwegian business owners a new and different option for business financing. Today, Qred is the market leader in the Nordics, 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 best solution for your business.
Kristina is responsible for the Norwegian market and has a broad background in banking and finance with over 5 years of experience at Nordnet. She has a bachelor's degree in Marketing and Management from Inland Norway University of Applied Sciences. Kristina helped start up the Norwegian market from scratch in January 2022.
