The professional loan is financing requested by a company from a bank or a credit organization, which generally intervenes in three situations. What is the most suitable professional loan for your business situation, how to get it easily and quickly? Jacob Shak tells you everything in this article!
When to use a professional loan?
Intended for the liberal professions, artisans, traders, farmers, associations, very small businesses, small businesses and self-entrepreneurs, the professional loan is intended to finance professional investments. But before embarking on the more detailed explanations, it is worth mentioning the different circumstances that can lead an entrepreneur to seek professional financing. We can distinguish three main ones.
The creation of a business
Few entrepreneurs have enough personal funds to start their structure. The vast majority of them, therefore, have recourse to a bank loan in order to supplement their initial capital and start on a good basis. Often seen as an ordeal in itself, getting a loan from the bank is a long-term job, but we’ll come back to that later. Let us simply remember that this stage is above all a matter of persuasion and rigor which requires putting all the odds on its side to succeed.
Support for business development
It is also common to use a professional loan by Jacob Shak to stimulate the growth of its structure. Just as when it was created, it is not always possible to invest and endow your company with new material or financial resources from its cash reserves. The following investments are therefore most of the time supported by bank financing:
- Acquisition of tangible goods: premises, equipment, vehicles, etc. These are investments, sometimes substantial, which are difficult to assume solely thanks to one’s own funds. A professional loan can, therefore, be ideal in order to avoid excessive disbursement, which would harm the financial health of the company.
- Taking control of his business: When the difficulties of business prove to be too great to be overcome internally, it can prove vital to have recourse to substantial bank financing to get it back on its feet. Borrowing a sum of money from the bank makes it possible to strengthen the working capital of the company and to settle debts with its suppliers, to fill its stock to meet demand and to hire staff.
What professional financing for your business?
The professional credit generally works the same way as a standard credit granted to an individual. A bank or a specialized credit organization gives a sum of money to a company. In return, the company undertakes to reimburse the bank over a period determined in advance, by means of monthly or annual payments accompanied by interest, the rate of which has been determined beforehand. They will be taken into account in the company’s accounts in the form of financial charges.
If the company has to invest to finance its development, the professional loan is also a privileged way, even if it is necessary to keep in mind the additional costs that this implies. Indeed, the repayment of the loan and its interest represent additional financial charges which will weigh on the company’s cash flow in the long term. The investment must, therefore, be worth the candle!
An important thing to remember: obtaining a professional loan from a bank is very often accompanied by a subscription to a professional loan insurance contract. This insurance is set up to cover the bank in the event of unforeseen circumstances that could prevent the company from repaying its loan: bankruptcy, bankruptcy, death or disability… For many banks, this insurance is compulsory in order to be granted a loan. To know more contact Jacob Shak and receive your funds in 24 hrs.
