The Best Business Loans in Austria in Just One More Click
Compare the best options on the market and choose the one which best adapts to your day to day needs.
Further Below: Our Guide to Business Loans in Austria, Everything you need to know.
Our Rating: 9.1/10
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Raiffeisen Bank
Our Rating: 9.5/10
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Santander Consumer Bank
Our Rating: 8.9/10
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Austrian Anadi Bank
We explain in detail all you need to know about funding your business from the best types of credits available, the requirements, to having your credit approved to how to land the most attractive option viz-a-viz your preferences.
The coronavirus pandemic had threatened to take a toll on Austria’s economy, just like in every other country. While companies, industries, and every part of the economy had started feeling the bite of the pandemic, the Austrian Government came in with measures that would help cushion the businesses and at least sustain the economy.
The government stepped in to cushion sectors that were directly affected by the pandemic like tourism, transport, and the hotel industry. Hotels that saw more than 15% loss in sales would receive 500,000 EUR in loans.
SMEs would receive 2.5 million EUR in loans, repayable after 5 years. The Austria Wirtschaftservice (AWS) would place a once and for all fee of 0.25% of the funds and 0.3% of the funds in guarantee fees.
The Government also announced EUR 38 billion that would be used as crisis management funds. The government also gave out a clear breakdown of the funds where:
Other Grants would be channeled towards:
Additionally, the Austrian government provided bonuses for new investments where the investment was affected by Covid-19 and other factors such as climate.
Getting finance for your company or business depends on a few factors including your business profile. The characteristics of your business profile are a great determinant of the type of financing you get and the processes involved. There are different types of business profiles:
Companies
Self-employed
Characteristics of business loans
As aforementioned, your business profile will determine the type of financing your business qualifies for. Despite the uniqueness of the loan option you settle for, below are some of the characteristics to look out for as they cut across every loan option.
Where to get business loans
As Austria ranks among the top countries in the Euro Area that have developed financial systems as well as soundness in banks, there has been a massive emergence of banks and entities that provide business loans and other financial products at very friendly rates. The average lending rate in Austria was below 4% in December 2021, which is something to go by.
Business loan conditions
Different entities will have different requirements for business loans.
Below are some of the common requirements:
You might meet less or more stringent conditions depending on the entity from which you seek funds.
Documents needed to get funding
You might be required to send the documents online, via mail, courier, or deliver them in person. Some entities might require more or less documentation.
Other forms of financing for companies
With business lines of credit, the borrower can tap the money whenever needed until they reach their borrowing limit. The borrower will only repay the amount they have withdrawn and the interest attached and not the whole amount of loan that’s granted. Many Austrian lenders offer this product.
This is a type of financing for SMEs where the lender pays for our invoices to one or more suppliers. We’re then left to clear the bill with the supplier either in full (the interest included), in part, or in installments.
Through an online platform, a private lender may decide to invest in our business or for a reason, refuse to invest. You’ll see different services as you compare one platform with another in terms of the loan amount and terms and conditions.
With these types of loans, we’re only funded if we are able to present property (mortgage) to be used as a guarantee. The concession of these loans takes longer because of the appraisal processes involved.
Products to invest in your company
This is a platform where an investor is linked to a borrower. The private investor invests in our business until it’s stable. It’s important to note that once the investor finances your business, they’ll get a share of your business and share in profits.
Business angels are similar to equity crowdfunding only in that a group of investors come together and select a business in which they want to invest. Just like in crowdfunding, the investors will get a share of your company.
The conditions of getting financing from each of these parties are dependent on the agreement between you and the lender.
You’ll best benefit from this option if you’re self-employed and want to start a business.
The Covid-19 pandemic brought about a surge in federal subsidies in Austria. Check out the Austria Wirstchaftsservice website portal to learn how to get a subsidy.
Through these online platforms, you may get a private investor who’s interested in sponsoring your business or project.
About this page, our methodology
What is this page for: we present all you need to know about the best loan for your business that’s currently available in the market, which entities and platforms can solve our business financial needs, and what to do to obtain liquidity without overpaying.
Source: information about business loans interest rates has been drawn from Statista, while information about conditions of business registration has been sourced from the Austrian Law.
Methodology: all the information about the financing products has been collected through online research and mystery shopping.
About FUNDGECKO: we’re a team of professionals who are committed to helping you have an easy financial decision process, where you get a chance to compare the best financial products in the market and select the one that best suits your needs.
Note: All our services are free of charge as FUNDGECKO obtains its income from advertising and its featured products.