The Best Business Loans in Cyprus

Compare the best option on the market and choose the one which best adapts to your day to day needs.

Further Below: Our Guide To Business Loans in Cyprus, Everything you need to know.

1. Ancoria bank 

  • Offers loans of up to $ 100,000
  • Floating interest rates of 3.50% and APR of 3.90%
  • Longer repayment terms of up to 15 years
  • Offers both secured and unsecured loans
  • Lesser charges and commissions attached 
  • Seamless loan application procedures
  • Creditworthiness is a factor of consideration
  • Offers loans for various purposes
  • Fast concessions

2. Alpha Bank 

  • Get a loan of up to $ 10,000
  • Friendly interest rates of 6.58%p.a
  • Favorable repayment terms of up to 8 years
  • Excellent loan conditions
  • Fast online application procedure
  • Fast concession
  • Credit history of applicant is not considered
  • Offers loans for various purposes
  • Applicants with stable income flow are considered

3. Graceloan advanced loans

  • Get a loan of up to $10,000
  • favorable annual interest rates of 8%
  • Flexible loan repayment tenure of up to 60 months
  • Prefer applicants with stable income
  • Applicant’s credibility is a stronghold factor
  • Hassle-free application procedure
  • Unlimited loan purpose
  • Fast payout
  • Loan terms are seamless 

Business Loans in Cyprus, All You Need To Know

We are committed to ensuring that all of your business operations run smoothly. We help you acquire information on the most recent market trends, potential offers that can best fit your business needs, and other market developments that may be of use to you.

[UPDATE] What economic measures has the Government implemented for companies through covid-19?

When the epidemic hit the world, nations started implementing various measures to balance limited resources and aid in defending industries and companies that were exposed to the pandemic’s negative consequences. Cyprus, without being an exception, took various actions that enabled the supply chains to continue operating while the economy remained resilient.

Here are a few of the actions taken:

  • Start-up business entities responsible for public loans were frozen for 9 months without charging interest for capital generation.
  • Self employed personnel and other businesses were offered a special benefit of a loan guarantee amounting to 2 billion and the losses created by these loans were secured up to 70% by the government and the remaining percentage by the banks.
  • Financial supervisory authorities suspended the collection of loan installments and attached interest in all the licensed Cyprus lending institutions. These also called for the loan duration extension to further periods and lower interest rates.
  • The Central Bank issued directive measures to the other banks to enhance liquidity by offering financial facilities to curb the deficiencies of the pandemic for one year with reduced rates of at least 25% lower.
  • Public spending was reduced to attainable rates to avoid constraints within the country’s measures. This reduced inflation rates and maintained the GDP at a break-even point. 
  • More money was lent to small and medium-sized businesses. This made sure that the pandemic didn’t cause the expanding organizations to go bankrupt.
  • The government enhanced credit guarantees, which increased credit opportunities while lowering the risk that banks faced when extending credit.
  • The Cyprus Financial Supervisory Authority has given the country’s commercial banks a temporary license to guarantee the liquidity ratios for both the nation’s overall currency and individual citizens.

Distinguishing types of company profiles

The type of loan your firm requires to finance itself will be determined in large part by the company profile. Nevertheless, several lending institutions provide a range of financing options. This is why you want to know the different company profiles and the kind of funding they qualify for.

Let’s get rolling!

Companies

Large companies: These are companies that conduct a diverse range of operations. They might be either national or multinational, and they primarily deal with enormous finances. Cyprus national bank serves as an illustration. When evaluating business loans for organizations like this, more substantial funding should be taken into account.

Consolidated companies: These companies will have better access to receiving business loans because they have a solid operational system, steady revenue, and a track record of operations. This fosters a certain amount of faith in the ability of lenders to provide them with funding.

Start-ups: This type of company might not always be eligible for financing because there are different standards for business loans. Start-ups are already-running businesses in the real world. Nevertheless, they can run into sustainability problems.

Entrepreneurs: Since these businesses are still in their fictional scenario or idealized states, little or no loans should be obtained for them unless all the necessary conditions are met for their establishment.

Self-employed

  • As legal entities: when someone searches for a loan to finance their business, they are doing so on their dime. Their level of income defines whether they are a start-up or a consolidated business, and vice versa. The loans they can access, though, are designed for a single borrower.
  • As natural persons: These are people who earn money on their terms, not through employment. As a result, they use personal loans to fund their entrepreneurial endeavors.

Characteristics of business loans

The terms and conditions of various business loans vary, which results in divergent characteristics. There are, however, some traits that apply to loans all in all. They consist of:

  1. Amount: The quantity of business loans varies according to the requested use. Before applying for loans, borrowers should take their business profiles into account.
  2. Repayment terms and conditions: All company loans should clearly state the circumstances and terms that apply to them. This contains the time frame for repayment and the interest rate that applies to that loan to minimize unintended fees.
  3. Loan security: Since collateral, guarantors, co-borrowers, and other forms of security are crucial and required when making business loans, loan lenders should make it clear if they require any of these things.
  4. Grace period is given: The majority of business loans provide borrowers with a grace period during which they are not required to make any payments; however, this grace period varies from one loan provider to another.
  5. Payout rate: The amount of time it takes for various business loans to be released into the borrowers’ accounts varies. This suggests giving loans with first payout rates some thought whenever money is needed quickly.
  6. Commissions and other attached fees: Different lending entities have additional charges attached to the loan amount hence you should consider any additional fee before settling for a specific option.

Before accepting any loan, the borrower should make the effort to read the firm profile, find out its historical data, its strengths and weaknesses, and any other elements that may be of concern to the borrower. It’s also a good idea to do some independent investigation to make sure the credit facility being offered is legitimate and hasn’t been used fraudulently.

Where to get business loans

Different Cyprus lending organizations offer business loans, but it is essential for purposes of comparison that the loan borrower is aware of all the various lending institutions. This is because each organization has its terms and conditions. Business loans are available in several industries, including these:

  1. Banks: They should be given priority when taking out loans because they are significant loan providers with legal authorization to provide financial assistance to all borrowers.
  2. Companies and other capital lenders: The majority of lenders in this category offer online loan applications, which accelerates the process of acquiring a loan. Many people opt for them because the credit has fewer qualifying requirements than banks and the application process is rapid and accessible from anywhere.
  3. Other crowdlending financing platforms: These platforms will put us in touch with individual investors, who will decide whether or not to approve our company loan requests for working capital. We will compensate these investors with interest based on the level of risk we are willing to assume. Each of these credits is handled online, and we’ll hear back from you within 48 hours.
  4. Corporate financial institutions: These are other financial lending institutions that a borrower may consider as a source of taking corporate loans since they offer a wide range of financial products. They involve commercial firms, insurance companies, and brokerage entities.

Business loan conditions

Since loan requirements differ from lender to lender, the borrower should be fully aware of all requirements to reduce the likelihood that the lenders would approve the loan. They consist:

  1. Company profile: Before a lender accepts a loan request, a clear company description of its profile should be presented as it is a determining factor for the loan amount to be given.
  2. Previous credit history: The borrowing company’s credit history must display a favorable record with good clearance and recommendations from the lender before a loan is approved.
  3. Annual records: The bank will review the borrowing entity’s annual financial statements to determine the quantity of revenue and whether it is stable enough to qualify for a loan.
  4. Borrower performance: If the borrowing institution is a company, the company’s periodic performance should be shown to the lending entity to determine whether the company has consistently generated profits or losses.
  5. Lega registration: Another prerequisite for eligibility for the loan is that the borrowing entity must be duly registered under the accepted legislation governing the company. registration. This includes possession of a trading license and certificate of registration.
  6. Collateral: Some lenders require security for the loan taken. The security offered should be equivalent to the sum borrowed.

Note: At no time is the lender required to provide loans to borrowers. whether or not they satisfy the requirements. In either case, the lender has the right to refuse the application.

Documents needed to get funding

Additional documentation for further verification should be sent with your business financing application along with the prerequisites. These documents comprise:

  • Proof of identity which includes passport, utility bills, national identity card 
  • VAT returns 
  • Management accounts detail for operation monitoring
  • A bank statement for income flow
  • An updated balance sheet of the company’s turnover.
  • Corporate Tax compliance proof

If the financing company needs additional information not mentioned above, check with them to increase your eligibility chances.

Other forms of financing for companies

Crowdlending loans: Business crowdlending in Cyprus comprises using an online platform to solicit loans for businesses from a large group of people. Through an online gateway, which connects them, borrowers and investors carry out their transactions.

Business credit lines: It is a  distinctive form of financing that enables the borrower to withdraw money whenever they need to up until their borrowing limit is achieved. The borrower will the may installment repayment over time.

Loans with mortgage guarantee: The borrower will be asked to provide a piece of property in this situation to act as a guarantee. Without it, the borrower cannot be financed. Because there is an evaluation process, the application process takes longer than usual.

Products to invest in our company

  • Business angels: Sites run by Business Angels serve as a conduit between borrowers and potential investors. Business angel investors don’t deal directly with business owners; rather, management decides where to put their money. Once they decide to work for your company, they will always be a member of the management team. You risk missing out on the opportunity to receive funding from business angels if all you’re doing is a tiny endeavor.
  • 3F (Friends, Family, Fools): This is an additional source of funding to maintain our company thriving and active; the sums, terms, and conditions will be governed by the contracts.

Aid for the financing of companies

Government grants and other subsidies: There is a huge amount of government support available to aid in the launch or expansion of your firm. Visit the website of the Cyprus Agency for Development and Cooperation to determine whether your business is eligible for grants or subsidies.

Capitalizing on unemployed personnel: This type of investment is exclusively available to self-employed people who want to launch a business. The borrower will be qualified for full unemployment benefits if the money is used to launch a new enterprise.

About this page and our methodology

What this page is for: We assist you in obtaining whatever information you require about the various financial products offered currently, their terms and conditions, and other requirements that will enable you to make wise loan-taking judgments. We also provide simple procedures for the acquisition of the desired alternative.

Source: Information about personal loans and their regulations has been obtained from credit lending organizations, Government support portals, and Credit Advisory Boards among other reliable sources.

Methodology: Online research and consultation of the official statistics of the aforementioned reference sources were used to gather information about the terms of these products which include amounts, terms, and interest.

About FUNDGECKO: We are a comparison website that is established to make the loan application process simple for our potential users. Their evaluation abilities are honed by contrasting the best options available and arming them with the information they require for decision making.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.

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