Need a springboard to launch your business? Discover the business credit that will make it easier for you to get your foot in the door. Business credit for SMEs is one of the best financing options for your company, providing a number of significant advantages.
Financing solutions most commonly used by SMEs
As the owner of your own business, it's only natural that you should be on the lookout for the best financing solutions. As such, independent credit is one of the most practical corporate financing options. Get a business credit for your SME and enjoy all the benefits that come with it. SME credit is a more flexible option, offering higher amounts than conventional credit.
SME managers looking for financing solutions often turn to the traditional solutions offered by banks. By opting for a business loan, you can choose the amount requested and the term of the loan. You have :
- Operating credit. These are solutions that work directly with the company's current account. Note, however, that a line of credit also means fairly high interest rates in general. However, this all depends on market conditions.
- A second option is to opt for medium- or long-term financing. These are usually loans or leases, especially if the object of the application is the purchase of a vehicle. This time, interest rates are more advantageous overall.
Choosing SME credit as a more efficient solution
Business credit is a specialized, innovative solution that enables SMEs to obtain financing in line with their needs, without having to go through their bank. A private financing organization is an ideal way of obtaining advantageous credit. By choosing this alternative, the customer has the chance to benefit from credit expertise. Corporate credit is the equivalent of private credit, which used to be available only to private individuals.
The difference between conventional offers and the new business credit solutions for SMEs is that they offer greater flexibility, lower costs and greater simplicity. These differences have been carefully studied with a view to competing with the solutions generally offered by traditional banks.
Why is business credit a good solution for SMEs?
The new private credit financing solutions for SMEs offer many particularly advantageous opportunities. These are the advantages of business credit:
1. Business credit is more flexible
When you take out a business loan, rest assured that you'll be able to use the money freely. What's more, you choose the repayment period, and you can repay early if you need to. Note that early repayment means a considerable reduction in interest.
2. Business credit is easy to set up
If you don't like complicated procedures and paperwork, you'll love business credit! Here, administrative procedures are greatly simplified, making life easier for borrowers. And banks are generally quick to respond!
3. Business credit is cheap
In terms of cost, it's in your interest to take out a business loan! You can borrow from CHF 50'000.- to CHF 5'000'000.- depending on your needs. Loan conditions are often advantageous, and you'll enjoy a fixed term, a fixed rate and fixed monthly payments. Everything is fixed, no extra costs, so no nasty surprises!
As a borrower, you can benefit from clear budgeting. Cost control is an important element in running your business.
How business credit works
Here are the 2 options available to you when applying for a business loan:
- Apply for a loan at your current bank. Your bank will study your application thoroughly, and you'll have to wait several weeks for a reply. The loan will generally take the form of a line of credit (overdraft on your current account) which you can use to finance the purchases agreed with your bank.
- The second, much more practical solution is to enlist the help of Lica, which will take care of all the formalities for you. As an independent intermediary, we'll call on all our partners to get you the best solution on the market. You'll then obtain SME financing in the form of a loan, leaving you free to allocate the funds according to your needs and objectives.
What rate is applied to a business loan?
As a reminder, the amount of the business loan or credit can be up to 5 million francs. Rates generally start from 2.95 %.
For your information, should you wish to buy premisesLica will offer you a mortgage solution that is even more suitable and advantageous than the SME loan.
Why take out a business loan?
Small and medium-sized businesses take out business loans for a variety of reasons, as long as they are related to the development and improvement of your business. You might need to take out a business loan to improve your company's operating systems, to modify your IT equipment, to renovate and refurnish your offices, or to purchase a business vehicle. Each of these examples represents a considerable cost, and it's always preferable to finance the sum needed for a given project, rather than dipping into your company's reserves.
Conditions for obtaining a business loan
You'll need to meet certain criteria to be eligible for business credit. Although conditions are becoming more flexible, financial organizations still give priority to companies that have been in existence for at least a year, over those that have just been set up or want to launch their project. On the whole, however, you'll need the following:
- a complete year in review;
- demonstrate that the company is profitable;
- not to have any lawsuits pending in the name of the company;
- a company registered in the Commercial Register ;
If you think you don't meet these criteria, don't worry! Lica also offers alternative solutions that will certainly be of great benefit to you. Don't hesitate to contact one of our advisors, who will be able to help you with all the formalities and give you the best advice on how to obtain financing as quickly as possible.
And in the event of a lawsuit, is business credit available?
What to do if the company in question is involved in a lawsuit? You should know that many credit registers that banks consult in Switzerland. If you want your financing application to succeed, it's essential that you're up to date with all your credit data. Lica can also help you clean up your data!
Our conclusion on SME credit
Lica has extensive experience in SME credit, and regularly helps customers realize their dreams.
As with any type of financing, it is always advisable to analyze a company's current situation with the utmost care, so as to find the best solution without wasting time. That's why we believe it's always better to invest a little more time at the beginning of the relationship, to increase the chances of obtaining credit. That's why we Lica always favors a personalized approach to credit matters, and takes the time to get 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! That's right, you apply online in less than 5 minutes, and then our specialized teams do the work for you. That saves you time and money!