Commercial credit: the best alternatives to finance your SME
Obtaining commercial credit for your business is not always easy. Documents to provide, administrative lengths, the path to obtain a loan can quickly prove to be complex. What are your options for how to get the money you need for your projects? A quick overview.
What solutions for commercial credit?
The possibilities of obtaining a loan for your business will essentially depend on your situation. Thus, if you are independent on your own account or director of an LLC, the procedures will not be the same. The commercial loan possibilities are essentially as follows:
- Loan in your own name: if you are self-employed and your company is entered in the commercial register as an individual reason, you can very well apply for credit in your own name. The money obtained being freely usable without justification, you can then very well inject it into your business according to your needs. With this type of loan, you get the money easily and quickly, but you are more limited in the amount you can get.
- Business credit from a bank: the procedures for obtaining commercial credit from a bank are generally quite long depending on the type of loan (short or medium term, advance on current account or real credit, etc.). On the other hand, if your file is accepted, it is also the process that will allow you to obtain the largest amount.
- Commercial credit for SMEs: little known and still little offered alternative, SME credit consists of obtaining a short or medium term loan for your company, while acting as guarantor in the event of default. Above all, this solution allows you to gain speed and get your money quickly and without administrative complications.
Commercial credit for SMEs: what documents to provide?
This still little-known type of loan has a double advantage: attractive conditions and easy procedures for obtaining the loan. In addition, it is then possible to obtain commercial credit up to 300,000 USD with only a minimum of documents to provide for the study of the file:
- A valid copy of an identity document.
- The last declaration of taxes and fiscal taxation.
- The balance sheet / income statement for the past two years.
If agencies offering this type of loan for the self-employed, SA and SARL are still rare on the market, Seventies bank offers for example a free appointment with an advisor who can lead to an offer without commitment. In any case, if you are looking for commercial credit, the best thing is to find out from a specialist before committing!