EU loans for businesses - how to apply for a business loan with an EU guarantee

Favorable terms with EU loans

The difference between EU loans and traditional business loans lies in favourable terms. EU loans are characterized by lower interest rates; for example, in 2023, the effective annual interest rate for EU loans was 8-16%, compared to 18-22% for ordinary corporate loans. In addition, they often have more flexible repayment terms, which is a great advantage for small businesses during growth phases or during restructurings.

EU guarantees and risk minimisation

Another key consideration is EU guarantees, which reduce lender risk. This makes EU loans more accessible to companies that may not be able to provide traditional collateral or lack strong credit quality. With these guarantees, EU loans stimulate growth and development in small and medium-sized enterprises throughout the Union.

What are the basic requirements for obtaining an EU loan?

Understanding what the basic requirements are for EU loans is essential for any small business considering this form of financing! Here we delve into these requirements so that you can more easily see if your company can qualify for an EU loan.

Basic requirements for justification

To be eligible for an EU loan, your company must meet certain specific criteria relating to the size, financial health and operating structure of the company. These criteria include, but are not limited to:

• Company Size: The loan is primarily aimed at small entrepreneurs.
• Type of company: These loans are only available to limited liability companies.
• Number of employees: Your company should have no more than 9 employees.
• Turnover: The company should not exceed a turnover of 20,000 euros.
• Total balance sheet: The balance sheet should not exceed the total amount of EUR 20,000.
• Financial Statements: The company must have at least one consolidated and registered financial statement.

These requirements are designed to ensure that EU loans reach those companies that best match the EU's purpose with the programme, namely to support small entrepreneurs and promote economic growth in the EU. Does your company meet these requirements? Then your business can potentially receive funding that might otherwise be difficult to access, and thus the opportunity to grow and develop!

Application process for an EU loan

Applying for an EU loan involves a few important steps - it may seem like a big challenge, but don't worry. By following these steps carefully, you can increase your chances of getting an EU loan for your business.

Steps to apply for an EU loan

1. Identify a suitable financial partner: The first step is to find a suitable financial partner offering EU loans. This can be banks or other financial institutions that cooperate with the EIF.

2. Prepare the necessary documentation: Collect all the necessary documents, such as your company's financial reports, business plan, and other relevant documents that prove your business meets the basic requirements.

3. Search digitally: Many financial partners offer the ability to apply for an EU loan digitally, making the process smoother and faster!

4. Evaluation and approval: After submitting your application, the financial partner will evaluate your case. This can include a credit check and an assessment of your business's financial health.

Choose the right financial partner

Choosing the right finance partner is critical. It is important to work with an institution that not only provides favorable conditions, but also understands the specific needs and goals of your business. A good financial partner can provide valuable advice and support throughout the application process.

By following these steps and choosing the right partner, you can simplify getting an EU loan for your business and set your business plan on the path to economic growth and success.

Is an EU loan not the right option for you? Choose Qred instead

If your company does not meet the requirements for an EU loan, you can apply for a business loan from Qred! The only cost of a Qred loan is a fixed monthly fee, which is determined by the size of the loan and the creditworthiness of your business. Qred offers business loans From €1,000 to €500,000 that can help you invest in new hardware, increase your marketing or expand your operations. We have no hidden fees or commitment period for your loan — a simple application process allows you to gain access to capital quickly and easily. If everything looks good, you might even get the money in your account the same day!

Your journey to growth with an EU loan to businesses

As a small business owner, you are at an exciting crossroads. An EU loan can be just the boost you need to expand your business. With favourable terms, support from the EIF and a simple application process, it is definitely a possibility worth exploring. And if an EU loan doesn't seem like the right option, you can always apply for a low-cost loan from Qred today. It's time to unleash the full potential of your business - good luck in entrepreneurship!

FAQs on EU Loans for Businesses

What is an EU loan?

EU loans are financial instruments designed to support small and medium-sized enterprises in the EU by offering favourable financing terms. They are often managed in partnership with financial institutions and are intended to promote economic growth and innovation.

What is required to receive EU aid?

In order to qualify for EU aid, companies often have to meet certain criteria relating to the size of the operation, financial health and the type of project or sector. However, the requirements vary depending on the specific support program.