Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Our Rating: 9.5/10
- Offers a loan limit of up to SEK 45,000
- Attractive interest rates of 4 % p.a
- Favorable repayment period of up to 46 months
- Quick online application
- Convenient for short-term applicants
- Loans are offered for various purposes
- Fast concessions
- Prefers applicants with a reliable source of income
- Applicable to borrowers with income
Our Rating: 9.2/10
- Provide loans of up to SEK 25,000
- Attractive interest rates of 3.2% p.a
- Prefers applicants with stable income
- Hassle-free application procedure
- Fast payout
- Friendly repayment terms
- Loan limits grow with applicants’ timely repayments
- Grace period of up to 14 days after disbursement
Our Rating: 8.9/10
- Get a loan of up to SEK 30,000
- Flexible and fixed interest rates
- Favorable repayment period of up to 65 months
- Laxer application procedures
- Loans available for various purposes
- Fast concessions
- Applicants’ credit history is not considered
Business Loans in Sweden, All You Need To Know
We are determined to make all your business activities seamless. We are dedicated to equipping you with the knowledge about the current trends in business loans, all the potential offers that can best meet your business needs, and all other market trends that might be of help to you.
[UPDATE] What economic measures has the Government implemented for companies through covid-19?
When the pandemic struck the world, countries began putting in place some measures to balance scarce resources and help protect businesses and companies that were exposed to the adverse effects of the pandemic. Sweden, not excluded, employed some measures that helped the economy remain resilient with the supply chains still rolling.
Below are some of the measures put in place:
- The Financial Supervisory Authority reduced the countercyclical buffer required for the banks from a rate of 2.5% to a rate of 0% which made muchly more favorable for economic sectors.
- The government extended 70% of new loans to banks where they will be able to offer loan facilities to companies affected by the pandemic. This enabled startup companies to finance their operations.
- There was additional lending to small and medium-sized organizations. This ensured that the growing organizations don’t run bankrupt during the pandemic.
- The Central Bank of Sweden offered additional credits to other financing organizations to ensure there is a stable circulation of money, which helped to sustain the economy.
- The government facilitated the issue of USD loans which amended the issue of collateral. This enabled parties to use more covered bonds for credit.
- The government increased the credit guarantees which not only reduced the risk faced by the banks when offering credits but also extended the credit opportunities
- The Sweden Financial Supervisory Authority temporarily allowed the Sweden commercial banks to underwrite the liquidity ratios for the nation’s total currency and the individuals as well.
Distinguishing types of company profiles
The company profile is a major factor that determines the type of loan to finance your business needs. However, different lending institutions offer varied financing services. This is why you want to know the different company profiles and the kind of financing they qualify for.
Let’s dive in!
Large companies: These are business entities with a wide range of operations. They majorly deal with huge finances and can either be national or international. An example is the national bank of Sweden and when considering business loans for such companies more enormous funding should be considered.
Consolidated companies: Because they have a reliable operating system, consistent revenue, and a history of operation, these businesses will have no trouble obtaining business loans. This inspires some kind of trust in lenders to finance them.
Start-ups: As there are various requirements for business loans, this type of firm might not always be eligible for finance. Start-ups are existing companies in the physical world. They might nevertheless experience sustainability issues.
Entrepreneurs: these are businesses still in imaginary forms, they are still in an ideal form hence little or no loans should be taken for such business unless all the formalities of bringing it into existence exist.
Characteristics of business loans
Different business loans have different terms and conditions, this gives rise to diverging characteristics. However, there are common characteristics that cut across all loans in general. They include:
- Repayment terms and conditions: All business loans should indicate the terms and conditions attached to them. This includes the repayment period allowed and the interest rate attached to that loan to avoid unplanned penalties.
- Amount: Business loans amount vary depending on the purpose applied. Borrowers should consider their business profiles before applying for loans.
- Grace period is given: Most business loans offer some period of not making any payment by the borrowers after being given the loans, this period differs from one loan lender to another.
- Loan security: Loan lenders should specify if they need collaterals, guarantors,co-borrowers, or any other form of security as these securities are very key and necessary while undertaking business loans.
- Payout rate: Different business loans take a different range of time before they are disbursed into the borrowers’ accounts. this calls for consideration whenever the funds require urgency then loans with first payout rates should be considered.
Before partaking in any loan, the borrower should take an initiative to read through the company profile, find out its historical data, its strengths and weaknesses, and all other factors that can be of concern to the borrower. Personal research is also advised to ensure the credit facility offered is legal under the law and is not subjected to any fraudulent activity.
Where to get business loans
Business loans are provided by different Sweden lending institutions but it is necessary if the loan borrower knows all the diverse lending institutions for comparison purposes. This is because the terms and conditions vary from one organization to the other. These are some of the areas where business loans are offered:
- Banks: they are major loan lenders with valid authorization to offer financial aid to all the borrowers hence should be prioritized when taking loans.
- Companies and other capital lenders: The majority of lenders in this category feature an online loan application, which makes getting a loan much quicker and faster. Many individuals choose them since the application process is quick, can be done from anywhere, and the credit has fewer eligibility conditions than banks.
- Other crowdlending financing platforms: These platforms will connect us with private investors who will determine whether or not to give working cash to our company loan requests. These investors will be compensated based on our risk level, which we will pay to them in the form of interest. All of these credits are processed online, and we will receive a response within 48 hours
- Corporate financial institutions: These are other financial lending institutions that a borrower may consider
Business loan conditions
Loan requirements vary from one lender to the other hence the borrowing entity should be well informed about all the requirements to avoid instances of un approval by the lenders. They include:
Previous credit history: before a loan is granted, the borrower’s credit history should show a positive record that has good clearance and recommendations from the lender.
Annual records: the borrowing entity should present its annual financial statements for the bank to approve the level of income and if the income is steady enough to be qualified for a loan.
Borrower performance: If the borrowing entity is a company then the company performance should be presented to the lending entity to verify if the company has been making profits or continuous losses.
Lega registration: this is another condition considered as the borrowing entity must have been registered legally within the Swedish law to qualify for the loan
Note: The lender is not obliged to offer borrowers loans at any point.whether they meet the requirements or not. The lender has the authority to reject the application either way.
Documents needed to get funding
Along with your business loan application in Sweden, other documents should accompany the application for more verification.
These documents include:
- Aadhaar Card for identity proof
- PAN Card for the company or organization proof
- A driving license for identity proof
- A bank statement for income flow
- An updated balance sheet of the company’s turnover.
- Corporate Tax compliance proof
Check out with the lending organization if they require other details not included in the above
Other forms of financing for companies
Crowdlending loans: In Sweden, business crowdlending entails using an internet platform to obtain company loans from a crowd. Investors and borrowers are connected through an internet portal and they conduct their businesses using that platform.
Business credit lines: Business lines of credit are a unique type of financing that allows the borrower to access funds in small increments and as many times as they like until their borrowing limit is reached.
Loans with mortgage guarantee: In this case, the borrower will be required to submit a property that will serve as a guarantee. The borrower will not be financed without it. The application procedure takes longer than usual because it involves appraisal
Products to invest in our company
- Business angels: Borrowers and potential investors are connected through Business Angels sites. Business Angel investors do not work with individual business owners; rather, the managers choose where to invest. They’ll always be a part of the management team once they choose your organization. If you’re simply working on a small project, you can miss out on the chance to be supported by Business Angels.
- 3F (Friends, Family, Fools): this is another source of finance to keep our business lively and active, the amounts, terms, and conditions will depend on the contractual agreements.
Aid for the financing of companies
Government grants and other subsidies: There is a lot of government assistance available to help you establish or grow your business. To see if your company qualifies for subsidies or grants, go to the Swiss Agency for Development and Cooperation’s website.
Capitalizing on unemployment personnel: This form of funding is exclusively available to self-employed individuals who want to start a business. If the funds are used to start a new business, the borrower will be eligible for full unemployment benefits.
About this page and our methodology
About this page: We are dedicated to helping you achieve your financial needs, under the most appropriate financial products. We, therefore, present to you a variety of information on the best credit lending organizations and the best loans to partake in. This enables choosing the required alternative that bests meet your needs.
Source: Information on business loans in Sweden, their characteristics, requirements, and application procedures are derived from The Sweden National Bank and other monetary institutions such as corporate-financed institutions.
Methodology: The information on the terms of these products (amount, period, interest, etc) was gathered through online research, analysis of data online, and consultation of the aforementioned reference source’s official statistics.s.
About Us: FUNDGECKO is a product comparison website that focuses on personal finance and home economics. We assist our users in not only comparing the many financial products available on the market but also in providing extensive information that will help them speed up the decision-making process and arrive at the best deal.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.