Banks grant loans not only to natural persons but also to persons conducting business activity. An investment loan is intended for these people. As the name suggests, it is intended for investments that are to help increase the company’s competitiveness on the market thanks to various types of investments.
What investments can be financed?
The purpose of the investment can be very different. What the money will be used for depends primarily on the needs. Banks allow the use of investment loan funds to purchase new machines, articles used as office equipment, for means of transport, or for the purchase of real estate. The entrepreneur may also allocate all or part of the investment loan to the purchase of securities.
Who is the loan for?
This is a solution that owners of very different companies can use. It is addressed to large, small and medium companies. The latter use the loan most often. Undoubtedly, entrepreneurs operating on the market when granting an investment loan are preferred. But the road to obtaining it is not closed also for entrepreneurs who operate on the market for a very short time.
What conditions must be met?
In the case of investment loans, banks are more demanding of their clients. First of all, the bank must be sure that we have planned an investment that will bring the company an increase in profits. Therefore, one of the documents that the entrepreneur must prepare is the investment cost estimate and business plan. The bank will also be interested in creditworthiness. Insight into financial statements is therefore essential. Depending on the planned investment, the entrepreneur must also have some own contribution. It can be a minimum of 10% and a maximum of 20%. Banks grant investment loans most often in $, but at the client’s request it can also be granted in a foreign currency. In the latter case, banks most often grant them in euros or US dollars.