The business loan is an opportunity for profitable financing granted to businesses and professionals. It is intended to cover expenses such as those related to the creation of the company, purchases of business, purchases of shares or purchases of production equipment. It is therefore an instrument allowing professionals to create their business or develop it.
The quick business loan from Green Touch still called professional loan allows, as its name suggests, to fund three major types of professional needs.
By definition, the business loan is for professionals. Individuals are therefore excluded because of their quality. This assumes that the professional must justify its quality. For this, certain documents are necessary and to be presented to the financial institution concerned.
As a general rule, the business loan is intended for the liberal professions, craftsmen and traders, but also for farmers, associations or Little Entrepreneurs (LE). We find that the commonality between these different professions is to release limited resources. These are occupations where the need for funding can be significant, and employ a very large part of the working population. Hence a loan that is specifically for them.
In concrete terms, the loan can cover different forms. It’s not a single loan. Among these, we have classic credit, with often advantageous terms compared to individual credits. There is also factoring, or leasing. We will come back to each of these types of professional loans.
Credit is the most classic form of professional loan. It is simply a loan repayable by the company in monthly installments fixed in advance by the financial institution. Quite often the credits addressed to professionals are more advantageous and less restrictive than those intended for individuals. Some variants exist, for example the discount, the easy cash or the overdraft.
For a company, this involves using a factoring company (or factor) that acquires these accounts receivable and manages them in place of the company. Many benefits arise from this form of loan.
First, it allows the company immediate cash flow. She sells her client accounts for a sum of money.
But also, it allows the company to gain flexibility. Factoring could be likened to some sort of outsourcing in the management of the company’s accounts receivable.
Leasing is becoming more common for individuals, especially in the purchase of a car. But it is clear that this is originally a measure to help finance businesses.
Also known as leasing, leasing involves a company approaching a leasing organization (such as a bank) in order for it to acquire equipment and lease it to the leasing company. company for a fixed period in exchange for a fee.
This is the case where the company can not afford to buy the equipment. At the end of the period, the company is often allowed to purchase the equipment in exchange for payment of the residual value.
The advantage is that during the “rental” period, the company does not own the equipment, so the costs are reduced. However, the daily costs remain the responsibility of the user, therefore the company.