Why startups are rejected by banks
Maybe you're thinking about starting a business? Or maybe you've just started a new business? Unfortunately, borrowing money from the bank for a start-up is not easy. First, the risk is highest in the beginning, before the business is well and truly started, and second, the amounts are quite small. The bank likes low risk and lends large amounts to large companies. It is just not worth the bank's time to spend on start-up businesses.
What is a start-up?
A start-up is a company that has not yet incorporated or filed its first financial statements. Some banks even require three sets of accounts to keep a company from being considered a start-up. At Qeld , we think this is wrong because the first three years of a business are the most difficult. That's when you may need temporary capital injections to grow.
Starter Loan - A business loan to start your own business
Before you apply for a business loan, you need to have done your homework. What will your business do, how much money do you need to get started? How much can you pay back per month? Think about this carefully so you apply for the right amount and can clearly explain how you will repay the loan.
What type of loan is best for startups?
- Traditional bank loans are best suited when the business is already more advanced and there is an established cash flow.
- Qeld business loans are suitable if you have a temporary liquidity need. Qeld is one of the few providers of loans to startups.
- Equity is appropriate when there is great potential for the company's increase in value if it succeeds, but there is a high risk that it will take longer than planned.
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