Do you want to take out a company loan to scout the financial situation of your company? In this case, you have a wide range of different offers ahead of you. How to choose the best loan? Above all, we should pay special attention to the costs of a company loan. How to find the cheapest one?
Corporate loans can be found both in banks and non-bank companies. So let’s read the various proposals to find a loan that will be available on favorable terms and will be cheap.
Let us focus here on one type of company loans, namely on cash loans, which are available for almost every company – including the one that was just founded. Thanks to cash loans, we can finance all expenses, among others, purchase equipment for the company, goods, pay bills. We can spend the money for any purpose.
Interest on the loan
The first cost associated with the company’s cash loan is its interest rate, i.e. interest, which we pay for the money borrowed. The interest rate is expressed as a percentage and refers to a year, so for example we can deal with a 10% interest rate per annum. Then a loan for PLN 1,000 will cost us PLN 100 per year.
The loan interest rate may vary depending on the loan amount and the loan period. Let’s also remember that the longer the repayment period, the more interest we will have to pay to the bank or non-bank loan company, therefore shorter loans are more profitable.
Most loan companies and banks also receive a one-off commission on the payment of a company loan . Most often, the commission is a few percent of the loan, which is why it is not very high, but it is worth checking its amount to make sure it will not be very expensive.
We do not have to provide the bank or a non-banking company with a commission in the form of a payment – the commission is also included in the loan, i.e. when we take a loan of PLN 1,000 and the commission is PLN 50, the loan amount will be PLN 1,050, but the bank or loan company they will immediately collect PLN 50 from the commission. It will be added to our installments.
These are fees that are often used in non-bank lending companies, but we also meet them in banks. The amount of the preparation fee can be any and it is a fee for launching a cash loan for the company.
These are the main costs of company loans, but we can also meet with others, for example, it may be an obligatory loan insurance, a fee for processing the application.
How to choose the cheapest loan?
If you want to borrow money for a company and do it cheaply, it’s best to compare the loan costs exactly. Here, we help various calculators and on-line comparison computers, with which we can find out where prices are lowest.
We can also find helpful calculators on the websites of many banks and non-bank loan companies. After entering the amount of the loan and the repayment time, we can see how all the costs of the loan are and what one will cost us the least.
- interest rate on the loan
- commission for granting a loan