Most often, banks offer variable interest rates, depending on the current WIBOR rate. In addition, the bank’s margin depends on the current financial condition of the entrepreneur or on such factors like the loan amount or LTV level; the higher the risk from the bank, the higher the margin, although this is not always the case.
Banks are reluctant to grant an investment loan
Covering the entire value of the planned investment and demand from the borrower their own contribution, usually in the amount of 20-30%. If the own contribution is not a necessity, usually the bank will have different requirements on which it will make its decision on granting a loan or it has in its offer additional collateral from various types of programs.
A company applying for an investment loan should be able to guarantee adequate security so that if the investment fails, the lender will have another option to recover the outstanding balance.
In this case, banks are most likely to take into account the client’s real estate, i.e. it may also be the property on which investments are carried out, or completely different collateral.
Good idea to submit investment loan queries to several different banks
Any institution Banking is guided by its individual credit assessment and allocation system. Thanks to this, it will be easier for us to choose the best offer for our company. It is also worth remembering that the contract with the bank itself, especially if the loan is high, can still be negotiated.
However, even if it is already signed, it does not mean that the bank will automatically withdraw the money. Before this happens, the entrepreneur must meet the conditions for starting the loan.
Depending on the company’s situation, we have several banks where such credit can be obtained:
- Good Finance – one of the first choices planning investments. Virtually anything they can do on decent conditions. Of course, a lot depends on the situation but it is worth submitting the application. I will gladly help you like anything.
- E-Money – a very good choice was investment loans for up to 20 years with very good conditions. Margins in the range of 3-4% for mortgage collateral and the ability to operate with sole proprietorships as well as with ZOO companies.
Feel free to ask questions in the comments or contact me directly. I will help as much as I can.