Investment loan – financing company expenses
Investments in a company are usually associated with the need to raise considerable financial resources. The investments relate to e.g. replacement of the machine park, purchase of a production line, modernization of technology, purchase of computer programs or development of real estate. The source of financing modernization activities in the company can be a bank loan, but also a leasing or subsidy.
The current financial market offers many solutions for small, medium and large enterprises. Cash obtained through development and investment loans is usually long-term. The maximum funding period is 15 years. Depending on the bank, the own contribution may even amount to only 10% of the total investment, usually it must be paid in advance, and the rest of the funds are paid out by banks in at least several installments.
However, before you decide to take out a loan, familiarize yourself with the offers of several banks. Then you will compare the proposals and choose the optimal one for your company. Banks grant loans for various purposes and each of them has its limitations, as well as preferences regarding the required documentation – some want to get acquainted with the business plan, others do not. The formalities related to taking out an investment loan are time consuming and require a lot of work. To reduce time and costs, use the services of a specialized broker who, on behalf of the company, will complete formalities in banks, complete applications, help in choosing the most appropriate offer, and then negotiate the most favorable contract terms – which is even more important as investment loans are usually taken out on large amounts.
A typical investment loan is used to increase the company’s fixed assets and can be taken from virtually any bank.
Deciding on a loan is not the easiest one, choosing the type of financing also. Many entrepreneurs hesitate between leasing and credit. The loan gives you more opportunities, but not always the company can afford it.
Features of the investment loan for companies acquired by us:
- Up to 20 years financing period
- Up to USD 30,000,000
- 10% minimum own contribution possible
- The possibility of financing VAT
- Without a business plan
- High amounts
- Loans for start-ups