Corporate credits and loans
Corporate loans and credits - simple and secure access to suitable financing
Investing in office materials, expanding business premises, procuring raw materials or expanding production - for companies of all sizes and the self-employed, these steps are usually associated with considerable costs. To ensure that they can still invest effortlessly, companies and self-employed business people are reliant on having access to additional liquidity for their day-to-day business, even at short notice.
Corporate credits and loans are usually the first choice here - because they offer enormous freedom in terms of organisation and use. This makes them ideal for economic players of all sizes who are looking for a quick and reliable financing option in the event of acute liquidity bottlenecks or for large projects.
What is a corporate loan?
Financing via company loans or credits enables companies to make investments in operating resources, site expansions and more, even if the financial situation is tight or a large proportion of cash and cash equivalents are already tied up. Depending on the lender and the respective credit model, the additional borrowed capital that enters the company via the loans can be used freely or for a specific purpose.
Due to the wide range of financing instruments that fall under this designation, both banks and other financial service providers such as FinTechs offer corporate loans and credits in various forms. The extent to which companies or self-employed persons have to provide evidence or collateral depends on the respective financing provider / lender.
The right corporate loan for your company in just a few steps
Although corporate loans differ in terms and conditions depending on the provider and the initial situation of the borrower, the process is generally always similar:
You identify your company's credit requirements and the right type of loan for you. Based on this, you prepare all the necessary documents such as a business plan, financial reports, tax returns and collateral.
You then select potential lenders and submit your loan application with the required documents.
The next step is for the lender to assess your application, including checking your company's credit rating and creditworthiness.
You negotiate your individual conditions together with the financier. These include the interest rate, repayment plan and term. If everything is right, you sign the loan agreement and receive the loan.
You can now use the loan amount provided for the intended purpose. You should carefully observe the repayment conditions.
The 4 most important advantages of corporate loans at a glance
- Flexible terms
No financing instrument is as flexible in its term as a corporate loan. Depending on the utilisation, terms of a few months to several decades are possible.
- Immediate liquidity
Depending on the financier, corporate loans are now paid out within 24 hours of the application being submitted.
- Tax advantages
You can claim the interest charges incurred by the company loan against tax.
- Entrepreneurial freedom
The investor receives neither co-determination rights nor shares in the company. You remain self-determined.
Corporate loans and credits at a glance: What should your company consider?
Depending on the financing requirements, use of funds and the criteria of term and cancellation modalities, the financial market offers different models for financing your company's short to long-term investment projects. The following table provides an overview of the key aspects that your company should consider when utilising a corporate loan or credit:
| Credit line | Overdraft facility | Investment credit | Property loan | |
| Financing amount | Any | Any, depending on creditworthiness and collateralisation, benchmark is net working capital | Any | Any |
| Utilisation of funds | Revolving loan to secure liquidity; flexible without specific earmarking | Earmarked; current assets | Earmarked; fixed assets (machinery, equipment) | Earmarked; fixed assets (real estate) |
| Laufzeit | Any, "until further notice" | Short to medium term | Long-term, based on the useful life (amortisation period) of the financed assets | Long term |
| Costs | Commitment interest for terms > 1 year | Interest (reference interest rate + interest surcharge depending on creditworthiness/risk); loan commission as interest surcharge or as a fee (commitment fee) | Interest + use of equity between 10% and 25% of the investment amount, full financing is the exception. | Individual interest rate (depending on: lettability of the property, location) |
| Collateralisation | Unsecured (with a high credit rating) or against the provision of standard bank collateral | Unsecured (with a high credit rating) or against the provision of standard bank loan collateral; net current assets as loan collateral (e.g. inventories, trade receivables) | against the provision of standard bank loan collateral, often the capital goods purchased | against the provision of standard bank collateral |
| Cancellation & redemption | Short-term right of cancellation on both sides; repayment while the line is open (any repayment and revolving drawdown of the credit line) | Right of termination at short notice on both sides; repayment by immediate repayment or instalments | Short-term cancellation through repayment; repayment as instalment loan or bullet loan | Cancellation depends on the type of contract; repayment usually by annuity loan with long-term fixed interest rate |
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What requirements must you fulfil in order to obtain a corporate loan?
In order for companies to successfully apply for corporate loans, various requirements must be met. These include the following points:
- Type of company
The borrower must be a company or an authorised representative or a self-employed person. The final decision as to who is eligible to apply for a corporate loan is made by the lender on a case-by-case basis.
- Documents
Typically, borrowers must prove that they have a sufficient credit rating and creditworthiness in order to apply for corporate loans. The following documents are usually required for this: Annual financial statements (2-3 years) / current BWA (business analysis) / bank statements (6 months).
- Collateral
Depending on the amount of the corporate loan applied for, additional collateral is often required to reduce the default risk for the lender. This may involve business assets, vehicles, property and more.
The requirements to be met for a successful application vary depending on the provider. If you have sufficient creditworthiness or only a small financing amount, it is possible, for example, to waive collateralisation. It is worth researching this in advance in order to compare the requirements of different financing institutions and plan accordingly.
When are corporate loans worthwhile? - Case studies with calculation
Companies or the self-employed can use corporate loans and loans for a wide variety of financing projects. The financing framework available often depends on the company in question, the business model and the corresponding assessment by the lender.
If a financing service provider is prepared to grant corporate loans even in the event of business difficulties, this can be an important financial relief for SMEs. However, it should be borne in mind that lenders demand correspondingly higher risk premiums for their corporate loans and credits in the event of higher default risks. A detailed calculation is worthwhile here: in this way, borrowers can ensure that the monthly charges do not overburden them in the medium term.
There is also the option of debt rescheduling via corporate loans, i.e. replacing older and usually more expensive loans. In many cases, companies and the self-employed can consolidate their loan portfolio and benefit from more favourable interest conditions overall by switching to a lower-interest corporate loan.
The company
IT service provider
Demand
Operating resources
Turnover
1.000.000 €
Financing volume
100k €, 3-year term, 3.5 % interest
The company
Industrial bakery, branches throughout Bavaria
Demand
Marketing offensive
Turnover
5.000.000 €
Financing volume
700k €, 4-year term, 5 % interest
FAQ Corporate loans
The area of corporate loans is extremely extensive and complex - and the options for companies are wide-ranging. Finanzierung.com explains the most important facts in a concise and compact way.
Corporate loans and business loans differ essentially in the term of the agreements and the amount of capital provided. They are largely identical in their mode of operation and are available to both companies and the self-employed.
A loan usually has a shorter term of 1 to 5 years and a lower loan amount.
A loan usually has a term of more than 5 years and involves a minimum six-figure sum.
Companies generally use corporate loans to cover short or medium-term financial requirements. This type of loan is available to companies of all sizes as well as the self-employed. This allows them to conveniently finance their business projects, increase growth and bridge liquidity bottlenecks.
The search for a loan is often difficult for entrepreneurs. The market is confusing and the number of providers (from the house bank to alternative financial service providers) is constantly increasing. We help you by analysing your company, comparing your requirements with our large network of financing partners and negotiating the conditions of individual offers together with you. In this way, you receive customised corporate loans tailored to your requirements and plans.
Corporate credits and loans - Suitable financing with professional support
Finance your business needs exactly as you want them: Thanks to the expertise of our financing experts and our broad network of financing partners, we are able to provide you with fast and customised corporate loans and credit at good conditions - regardless of industry and company size.
We have been in the market for you for 20 years. As entrepreneurs like you, we know exactly what companies and the self-employed need in all financing matters.
Finanzierung.com will always provide you with a personal advisor. No call centers, no queues. You can also visit us in person at our offices in Munich City Center.
Thanks to our long-standing relationships with financiers and our high financing volume, we receive unique conditions, which are passed on to you.