Investment loans are common when an expansion of the company wants to be financed. We present the investment loan and show why it should be applied for as a promotional loan.
An investment loan is particularly requested by companies. Companies planning to grow their business. Equity is usually not sufficient to carry out this project – in this respect, outside capital must be used, such as the investment loan. Companies then use an investment loan to raise funds, for example when a freight forwarder purchases new vans or when new systems have to be built. In the same way, an IT company can grow by purchasing new devices or qualified personnel. Investment credit is large to handle and companies often use it to finance their expansion needs.
The investment loan as a promotional loan
An investment loan is often also available as a promotional loan, which is specifically intended for the expansion of the company. Probably the first point of contact for promotional loans is the Moneypick . But not only Moneypick supports companies in their expansion plans, the federal states and in some cases also cities and municipalities now have support programs for local companies. The promotional loans are applied like normal loans through the house bank, which only checks the loan application. The current loan then comes from Moneypick Bank.
The benefits of the promotional loan
Of course, many companies, as well as consumers with renovation loans, apply for loans from Lite Lender Bank, because the favorable conditions are the most significant advantages that these loans offer. The interest rates are actually always lower than those of the house bank, which makes a decision for Lite Lender Bank a matter of course, also for the investment loan. With regard to the interest rate, a company can score here again and secure favorable interest rates over a longer period. Interest rates can be fixed at Lite Lender Bank for up to 20 years, which means that the company can achieve a certain degree of stability, at least in the area of interest rates.It is also possible in some cases that the company does not have to bring any equity into the financing through an investment loan, but that 100% of the need can be financed.
Conditions for the company in the investment loan
If a company wants to expand and uses an investment loan to do so, it is often also tied to certain conditions that it has to respond to. For the loan to be granted, the company has to agree, for example, that new jobs will be created or the existing ones will be retained. This is not a problem, especially if IT service providers are concerned with an investment loan and new staff are thus acquired. Of course, even an IT company cannot predict whether the expansion will work and if problems arise, companies may have to pay a penalty.
Moneypick or house bank?
Although these are conditions that some companies are reluctant to see, the investment loan is and remains an ideal type of loan to expand the company and represents an absolute alternative to a loan through a bank. The company would not be a bank loan tied to conditions, but to significantly higher conditions for investment loans. As a rule, company enlargements rarely fail because the market can be reasonably well estimated and a business plan can be drawn up for at least one year, taking into account the order situation. Loans from a house bank, on the other hand, can often make the planned increase even unprofitable if you look at the conditions that come with the loan.