Those who need a loan for their secondary business have very good chances with many banks and lenders. The traders are often still in full or part-time employment, which guarantees a monthly income. The higher this income, the better the loan conditions can be.
The house bank is the first point of contact for most borrowers
In many cases, anyone wishing to run a secondary trade needs a certain amount of start-up capital. Furnishings, work materials but also a company vehicle can be on the list of necessary purchases. In these cases, a loan for a secondary business is usually the only solution. First, an appointment with the house bank should be made. In most cases, the monthly salary from the permanent position is transferred to this bank and there is a longer business relationship.
The house bank knows the economic situation of its customers and may be able to help in difficult cases with a small loan or the provision of an overdraft facility. If a small loan or an overdraft facility is not sufficient for the necessary purchases, other lenders should also be considered in any case.
High-quality inventory can be used to secure loans
If the secondary trade is to become the main source of income in the near future, banks that are to provide a loan for the secondary trade need all the documents necessary for starting a business. In any case, this includes a detailed business plan and a realistic earnings forecast. An inventory list, especially with high-quality vehicles, furnishings and machines, should also be submitted. The existing inventory and high-quality new purchases can be used to secure the requested loan.
If the loan for the secondary trade exceeds the security from the inventory and from the income from the employment relationship, a surety may have to be named. This guarantor is then liable with his property for the loan taken out until it is repaid or the guarantee ends.
State aid is also often offered to start-ups
In many cases, start-ups are also supported by the state. The Intrasavings bank grants a low-interest loan for a secondary business. However, the amount of the loan granted and the loan terms depend on the type of business. The loans granted by Intrasavings bank are also paid out in whole or in part, depending on the business. It is particularly important that a loan is applied for from this bank before an investment in the secondary business has been made.
Existing companies are not promoted or supported by this bank. Anyone who needs liquid funds for setting up a business or an existing secondary business should in any case be well informed so that they can really take advantage of all possible grants and support.