Business loans to limited partnerships

Limited partnership is a common Swedish form of company and is most closely described as a kind of trading company. Of course, Qred issues loans to limited partnerships.

What are limited partnerships?

A limited partnership is, as mentioned earlier, a type of trading company, in which you must be at least two shareholders, one of which must be a limited partnership owner and one a complementary. The corporate form is fairly common among law firms, for example, where you often work with a kind of co-ownership as a reward for loyal employees. A major difference between limited partnerships and trading companies is that personal liability is largely limited for limited partnership owners, while the complementary has financial responsibility for the liabilities of the business. However, a legal entity can be complementary, which, it must be said, is a great advantage.

Pros and cons of limited partnerships?

Limited partnerships are a good form of company to limit the financial responsibility of a group of shareholders who at the same time want to share in the company's profits. Since the company's complement can be a legal entity, it is also possible to assign the financial risk in the company's operations entirely to, for example, a limited liability company. Moreover, a limited partnership is relatively easy to administer. However, a large limited partnership with only natural persons as co-owners has an auditor requirement. We generally recommend limited liability companies as a form of company.

Is it easier to get loans for limited partnerships?

When we at Qred review an application and do our risk assessment, we look at several factors, and most importantly, of course, what your business does and how it will develop in the future. We cannot say on the straight arm that it is easier to get loans to limited partnerships, but that is absolutely not a disadvantage.

We help all types of companies with business loans. It's more important what your business plan and future looks like, than what last year's numbers looked like. The more we have to take a position on, the better offer we can often offer. Therefore, remember to always supplement your application with the documents that you have, even if it is not a requirement.