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Running your own business has its pros and cons. Many people decide to open a company because they want to manage their work time by themselves. It is not always true that everything looks so colorful in practice, but taking risks usually pays off. Unfortunately, unreliable contractors, reducing the number of orders (e.g. out of season) or the need to make some urgent investment may result in the loss of financial liquidity.

Non-bank loans for companies – which one to choose?

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Non-bank loans for private individuals and loans for entrepreneurs are two different financial products. Only a few non-bank companies have introduced loans addressed to persons conducting business activity to their offer. This is definitely a smaller market than non-bank loans for private individuals.

Entrepreneurs, due to limited confidence in non-bank institutions, are still more willing to use traditional bank loans. Loan companies offer business people three main forms of loans: payday loan, installment loan and secured loan. The latter are subject to the greatest risk due to the possibility of losing part of the property in the absence of timely repayment. In order to find the right financial product, you can use, among others from online loans comparison.

Loans for entrepreneurs and costs

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Non-bank loans for natural persons and for persons conducting business activity usually do not differ in terms of costs that the borrower must bear. The interest rate is similar and companies can only try to negotiate terms with high loan amounts. However, this is very rare and non-bank entities rarely allow better repayment terms to be negotiated. Most often, most entrepreneurs decide to submit a credit card application to the bank. Thanks to the high limit, they can maintain financial liquidity without having to apply for a loan.

If it is necessary to raise funds in the shortest possible time, the only way out of the situation seems to be non-bank loans for companies. They allow for quick implementation of plans, as well as maintaining financial liquidity. It should be remembered, however, that each loan must be repaid on time to avoid any unpleasant consequences.

Why do entrepreneurs reach for external sources of financing their activities?

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One of the reasons why entrepreneurs reach for a non-bank loan is the need to raise funds for start-ups and business development. Banks usually require the company to operate on the market for 12 months and its owners have sufficient creditworthiness to pay the debt. Formalities in loan companies have been kept to a minimum.

Non-bank loans for entrepreneurs are a quick way to obtain additional cash. Most importantly, companies usually don’t have to inform the lender what they want to spend the money they receive. Banks always require the purpose for which the money is to be allocated.


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