Professional loan
What is a professional loan?
The business loan is dedicated to financing the needs of very small businesses, SMEs, self-employed professionals, farmers, associations, independent retailers, franchisees and craftsmen. The business loan covers all or part of the investment, and its term can be between 2 and 7 years.
The granting of a business loan is generally conditional on the provision of a guarantee such as a surety, pledging of the business or death/disability insurance for the company director.
PNG Finance helps you turn your dreams into reality
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1-step form, completed in under 3 minutes
Transfer within 48 hours
Efficient processing of your loan application within 24 hours*.
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No hidden charges
you only pay your monthly instalments, not a penny more
What are your plans for a business loan?
Business, service company, industrial SME, pharmacy, franchise …?
Tell us what you need and we’ll consider your financing request within 24 hours.
Depending on your project (business, purchase of equipment, etc.), your needs and your profile, if we cannot offer you a Laroche Finance financing solution, we will look for the most suitable partner among our partners, all of whom are specialists in professional loans.
What are the features of a business loan?
The main parameters to be taken into account when taking out a business loan are :
– Capital :
The total sum to be borrowed from the bank.
– Interest and related costs:
This includes the interest rate, insurance, administration fees and guarantees linked to the financing itself.
– Repayment period :
The period over which repayment is staggered.
– Repayment terms:
These concern the frequency of repayment (monthly, quarterly, half-yearly, annually) or the capital/interest ratio for each repayment.
However, the type of credit also has an impact on the company’s balance sheet and taxation, so it’s a vital factor to take into account. With the help of a business finance expert, you can make the best arrangements for your company’s financial health.
What is a business loan?
The business loan is dedicated to financing the needs of very small businesses, SMEs, self-employed professionals, farmers, associations, independent retailers, franchisees and craftsmen. The business loan covers all or part of the investment, and its term can be between 2 and 7 years.
The granting of a business loan is generally conditional on the provision of a guarantee such as a surety, pledging of the business or death/disability insurance for the company director.
Operations eligible for financing
The aim is to finance needs linked to the development of the business. The transactions financed often relate to equipment, property or cash flow requirements. Business credit enables you to meet your various financing needs throughout the life of your business.
What are the different types of business loan?
Financing your business includes different types of business loans: short-term loans such as revolving credit and cash loans, medium-term loans such as factoring and leasing, and longer-term loans such as amortisable and in-fine loans.
To obtain these types of finance, it is important to prepare your application carefully. To do this, complete an online form and a PNG Finance expert will contact you.
What guarantees can be requested?
Business loan guarantees enable lending institutions to protect themselves in the event of a company defaulting on payment. Guarantees can be taken out on property, movables or through specialised institutions.
In Europe, business loans are the most widespread solution for financing assets on a company’s balance sheet.
But is it really the best way to bring tangible or intangible investment projects to fruition? How can you make the most of this loan?
Adapting the loan schedule
With a traditional business loan, your company gradually repays the loan interest and capital until the end of the term, according to a pre-agreed schedule. The loan may give rise to constant annual payments, constant repayments or be repayable at maturity.
It is important to adapt the loan repayment schedule to the anticipated return on investment and to take account of changes in business and cash flow:
- Choosing the right term: the term of the loan is a key parameter to consider. For tangible or intangible investments, repayments are generally spread over a period of around 5 years. On the other hand, the financing plan for a property may be more than 10 to 15 years. In all cases, it’s important to match the term of your loan to the amortisation period of the asset you are buying.
- Negotiate a deferred repayment period: a deferred repayment period at the start of the loan allows you to take better account of the point at which the investment actually translates into additional cash flow.
Choosing between fixed and variable rates
Depending on the economic climate and expected changes in interest rates, you will have to choose between a fixed and a variable rate. A number of factors need to be taken into account:
- Minimising costs,
- Reducing risk,
- Follow your expectations…
On this last point, expectations of rising or falling interest rates have a strong influence.
You should take out a variable-rate loan if you think rates are going to fall.
Conversely, you should choose a fixed rate if you believe that current interest rates are low.
This is a form of speculation that represents a risk for the company: an increase in the future cost of its financing or a loss of opportunity on the cost of its debt.
In particular, it is difficult for a company with a high level of debt or in a cyclical sector to take the risk of a rise in interest rates that would increase its costs.
Negotiating the guarantees required by the lender
The granting of a business loan is often conditional on the provision of guarantees to the lender. A distinction is made between personal sureties, which protect the lender by enabling him to take action against other people (for example, a director acting as guarantor), and real sureties, which guarantee the loan by assigning an asset to the payment of the loan.
One of the surest ways of guaranteeing repayment is for the lender to use one of the company’s assets as collateral. This imposes severe constraints on the company (it is impossible to sell the asset, etc.), but may enable it to lower its financing costs or find more substantial financing.
On a positive note, the more substantial the collateral provided, the stronger your bargaining position when it comes to negotiating the rate of your loan.
What are the advantages of a business loan?
Quick and easy to set up, a business loan can be adapted to meet the needs of all profiles. This financing solution offers many advantages:
The business loan adapts exactly to the needs of businesses.
The business loan can be renegotiated when cash flow changes (change in economic climate, asset sales or acquisitions, etc.).
The interest on a business loan is a tax-deductible expense.
Business loans are generally less expensive than leasing.
With Credit-Internet.com, you can access business loan offers enabling you to finance your equipment, including the most expensive items, in several instalments, with instalments perfectly tailored to your cash flow. As well as offering you a competitive rate, our experts will help you to optimise all the terms and conditions of your loan, with the best insurance and guarantees on the market.
Good to know
The granting of a loan to finance a business project is based on the financial solidity of your company, both present and future. To ensure that lenders have confidence in your business, our experts will help you put together your financing package, highlighting the anticipated profitability of your investment. What’s more, our experts use a number of levers to optimise the financing of your project.
Do you still have doubts?
PNG Finance can help you find the credit that’s right for you.