Business Credit - Apply for a corporate credit for your business

In a world where small businesses face economic challenges, access to capital isn't just an advantage -- it's a necessity. Corporate credit offers the financial flexibility and security needed to enable small businesses to grow and adapt to fluctuating market conditions. Whether it's covering unexpected expenses or funding expansion plans, business credit can play a critical role in your business's growth.

In this article we will look at what business credit is and how to apply for it for your business - join us!

In 6 minutes or less you will learn about how corporate credit differs from business loans, the interest rate on corporate credit and what requirements exist for business credit.

What is corporate credit?

Business credit is a so-called overdraft credit or cheque credit that gives your small business more financial freedom and movement. It is a line of credit given by a bank or lender where you use the money according to the different needs of the company.

Business credit can be crucial for the finances of the small business, as it allows various investments in, among other things:

• Capital goods
• Expansion projects
• Management of cash flow in different periods

With the help of business credit, you can ensure that your company receives capital at the right time to support both growth and day-to-day operations.

Corporate credit vs corporate loan

Corporate credit is similar business loans in that your company gets an injection of capital, but with one big difference - with corporate credit you get granted a sum and choose how much of that sum you then use. This is not how a business loan works, where you as a borrower are bound to pay back the full loan amount as well as interest beyond that amount. The thing about business credit is that you only pay back the money you used, i.e. not the entire amount you were granted.

Corporate Credit for Startups

For one start-up small business business credit may be indispensable - since new businesses may not always have established creditworthiness or long business history, it can sometimes be more difficult to qualify for traditional business loans. This can make business credit a valuable and more flexible resource in the early and unpredictable days of entrepreneurship.

Interest on corporate credit: what does it look like?

When it comes to corporate credit with traditional banks and lenders, interest is only paid on the money you use, unlike a business loan where interest is paid on the entire loan amount.

At Qred, we do it a little differently - instead of interest, you pay a fixed price every month for your business credit. We do not have any interest or other costs, but you pay the same fixed fee every month. Business credits with us have no binding period, and you only pay for the months you have the credit.

How to apply for corporate credit with Qred

Online business credit at Qred is fast, secure and easy. Applying for a business credit is a smooth process that can be summarized in three simple steps:

1. Apply in one minute: Quick and easy application process. The application is free of charge and non-binding, and we do not take any UC on you as a private individual.

2. Get a response within an hour: After you apply, we will contact you within an hour - you will be notified of how much credit space your company is granted.

3. Payout on the same day: Sign with BankID and get the money the same day.

Borrow from SEK 50,000 up to SEK 5 million.

Common business credit requirements

When you as a small business owner apply for business credit, it is important to be aware of some basic requirements that credit providers often impose. These requirements may vary slightly, but here are the most prevalent among traditional lenders:

• Registered company: The company must be officially registered and have a valid organization number.

• F-tax form: The company must be registered for F-tax.

• Operating time: Many lenders require that the company has been active for at least six months to a year.

• Financial health: The company must have a stable financial history without debts with the Swedish Crown Prosecution Service. Credit worthiness is usually assessed by a credit report.

• Wagering requirements: Some lenders may place requirements on the company's annual turnover, which often has to exceed a certain limit.

It is also common that the owner or CEO of the company may have to act as guarantor, which implies a personal financial responsibility if the company cannot repay the credit.

These requirements aim to ensure that the company is deemed capable of managing and repaying the credit, thereby reducing the risk to the lender.

Small business with Qred

Business credit can make your small business more agile by increasing the freedom of movement of money — at Qred we understand this unique need for small business owners. That's why we offer tailor-made financing solutions that are fast, flexible and without complicated conditions. Our goal is to make financing simple and accessible, so you can focus on what matters most — running and growing your business.

Whether you need to read our guide on sell invoices, procure business credit card, or learn more about the business of Qred Academy We are here to contribute to your journey. Get started with Qred today, and good luck with your business!

Questions and answers about corporate credit

What is corporate credit?

A business credit is a type of financing that gives companies access to a predetermined amount of capital, which can be used as needed. It is a flexible solution for managing cash flows or financing investments.

What does it take to get a business credit?

In order to obtain a business credit, the company usually has to meet certain criteria that include most often a stable financial history, operating time, and often a check on the creditworthiness of the company. There may also be requirements for minimum turnover and that the company does not have debts with the Swedish Enforcement Administration.

What does a business credit cost?

The cost of a business credit depends on the lender. At Qred, you only pay a fixed monthly price for the business credit, while other creditors may sometimes require both interest on the amount used as well as any administrative fees.