Bank loans are among the most important financing options for companies.
However, there are different types of loans, so it is important to consider exactly which loan is best suited for the project.
Different types of credit
Depending on the purpose , different types of loans can be used.
Depending on the intended purpose, it is possible for borrowers to avail themselves of different loan types.
While it is often the case that the names of the various loans differ from each other, in general, the loans can be differentiated as follows:
- Working capital loans
- Investment Loan
Working capital loans
The credit is aimed primarily at entrepreneurs.
Working capital loans are offered for entrepreneurs. The loan is intended to finance short to medium-term maturities with low to medium funding.
It not only serves to finance the working capital within the company, but also to secure the current business.
For example, with such a loan it is possible to finance:
- personnel costs
- rental fee
- raw materials
- Costs that affect marketing activities
Attention: equipment as well as machinery and equipment fall into the area of investment needs and are thus financed by long-term investment credits.
The investment loan provides funds for the required investments.
For companies, investments are vital. Because it is often true: only those who invest remain marketable.
However, it is often the case that the required investments take on a certain volume that necessitates a loan, or at least that it makes sense that taking out a loan makes sense from a business point of view.
After all, it should not be forgotten that a financing protects the existing equity .
The investment loan serves to finance the most diverse fixed assets, such as equipment, machines and vehicles in the medium or long term.
But also real estate can be bought in this way. As a rule, it is then the case that the capital goods themselves serve as collateral .
In addition, two types of investment loans are distinguished: on the one hand, the so-called classical financing, which does not require the use of state subsidies, and on the other hand, the financing , which is subsidized by the state.
But there is another way of distinguishing, both internal and external .
Leasing is a form of investment finance.
Leasing is a fairly straightforward and uncomplicated way for companies to finance their investments.
As a rule, the contracts in question also include a full-service service, so that the company does not have to take care of the repair or maintenance of the goods in question.
However, it is important to note that leasing is only used for production goods. For example, it is not feasible to lease raw materials or even goods.
In the case of a real loan, a tangible asset is taken as a pledge.
Another type of loan is the so-called real loan. Here, a security is usually used as collateral as collateral.
In this way, even with a negative Schufa information and / or a low credit rating, it is possible to obtain a loan.
Often, for example, this is the case that owners of real estate take a longer-term installment loan , so that here a variety of renovation or renovation work can be performed.
As a pledge the question is property used: For this example, a mortgage burden or with a mortgage will be charged.
However, it is also possible to use the loan to increase the current liquidity .
However, such a loan is also available in another form: the so-called real credit splitting. This is necessary if the necessary mortgage lending limit is above the normal 60 percent and, accordingly, a better classification of the existing risk is necessary.
However, once again differentiated between the spurious and the real splitting. In the latter case, the borrower concludes a total of two loans: the actual real loan and a loan, which is secured by an entry in the land register .
Quite differently it behaves against it, with a fake real credit splitting. Here it is that part of the loan is concluded with the help of a traditional real loan and the required 60% mortgage lending limit.
The amount left over will be financed through a personal loan. In case of a fake real credit split, however, all the terms of a single contract are closed.
Tip: If you want to take out a real loan , you usually have to turn to several banks , because not every lending institution assigns real loans to its customers.
Suitable for short-term financing with a low volume.
Not only for individuals, but also for companies or self-employed and start-up founders, it is possible to apply for a current account credit.
The overdraft facility is also generally known by the terms ” disposition credit” or “dispo”.
This kind of credit is particularly useful, for example, when it comes to short-term financing with a low financing volume.
With a current account credit, the borrower has the opportunity to cover the account up to the agreed terms with the bank . The framework is either temporary or indefinite. This offers the advantage that it is feasible to pay back the loan in whole or in part only to the Bank.
Further credit options
In addition to a standard bank loan, there are a large number of other options on how companies finance their trade.
In addition to a bank loan, leasing and the use of various promotional loans and funds, however, there are also other options to obtain a loan or funds for the company.
This includes, for example, factoring . Here, the sale of various claims quickly creates a certain amount of liquidity.
But also corporate and guarantees offer themselves in order to reach the necessary capital.
Another alternative is venture and equity capital, which is mainly used by start-ups.
Meanwhile, crowdfunding is becoming more and more popular.
Various credit and financing options are available for commercial financing. It also depends on how old the company already is and what purpose it is all about.
In the case of commercial financing, you also have it in your own hands with which credit the company wants to implement its respective goals.
When choosing a loan, for example, the desired purpose is decisive and whether it is about a young start-up company or an already long-established company.
Thanks to a loan, a company not only remains liquid and flexible but, for example, also able to make a variety of investments.