Small business loan – Avail now!

The small business according to the definition of the Commercial Code only requires that the scope and type of business of a sole proprietorship or a partnership do not require a commercial approach. An explanation over at

The trivial limit of USD 17,500 relates to the exemption from VAT payment as sales from business transactions that are generally subject to VAT, and as the sum of operating income to the fact that the USD attachment does not have to be completed when filing the tax return. Under commercial law, higher sales or profits do not necessarily mean that a trade is no longer considered a small business.

The easiest way to borrow is to start a business

The easiest way to borrow is to start a business

The required loan for small businesses can never be obtained as easily as when the company was founded. Promotional loans are open to all founders, with the exception of some of the sectors expressly mentioned by the credit institution on its website. Furthermore, the federal states provide default guarantees to start-ups on different terms, so that they also receive a loan from the commercial bank.

In the case of special loans for business start-ups, it is particularly advantageous that the repayment only begins after a start-up period of usually one year, so that the founder is not burdened by the repayment of loans during the start-up phase of his company.

Borrowing while self-employed

Borrowing money

Due to the limited turnover and the associated low profit, most banks only grant a loan for a small business with VAT exemption if the small business owner runs the business as a sideline. In this special case, when checking the ability to repay, they also carry out the household calculation that is otherwise only customary for lending to private customers. They also check whether the requested loan can be refinanced in the company based on the documents submitted.

If the loan applied for is intended for small businesses within the meaning of the Commercial Code, the bank is interested in the income surplus calculations of the past years and in the planned refinancing of the loan applied for through operating income. It is widespread to obtain additional Credit Bureau information on the private payment practices of a sole trader, as the latter is also liable for the liabilities of his company with his private assets. This liability also applies to joint ventures in the legal form of the GbR.

A business-related loan for small businesses shows a similar restriction to that for privately needed loans for the self-employed: many banks see themselves as consumer banks and only grant loans to employees and civil servants. However, there are also banks which, according to their statutes, are particularly obliged to promote companies located within their business area.

In addition, large private banks also issue a loan for small businesses. Since most investments do not immediately lead to profits, it is often advisable to arrange a repayment break for commercial loans. While this is basically offered with a loan for the establishment of a business, small businesses have to negotiate the repayment starts, which takes a few months, for loans taken later.

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