Term loans

Make sure you have the necessary documentation regarding finances and security.

What you need will depend on the situation you’re in.

Finances

For established businesses:

• Budgets and accounts

For new companies:

• Where there are no accounts available from the Brønnøysund Register Centre, we will need a budget

Security

• Property: We need a valuation or appraisal
• Disposal: The guarantor’s tax return for the last year
• Assets such as accounts receivable or inventory. Last year's financial statements

There are several factors we consider as part of a loan application:

The history of the company

• How well has the business run since starting up and which results can you demonstrate?

Security

• A bank will rarely grant a loan without security. The higher the risk associated with the financing, the stricter the requirements for security.
• A mortgage on property, stock and customer receivables are normal. In addition, it may be necessary for someone to act as a guarantor.

Changes to cash flow after taking the loan

• How well will you tolerate the monthly repayments and interest payments?

Market conditions

• What are the future prospects for the company’s market and industry?

Share of equity

• Depending on which type of financing you’re looking for, there will often be a requirement for part of the investment to be financed by equity.