Adjusting your business loan

Pandemic, high electricity prices and inflation. Running a business is hard enough as it is, and it hasn't gotten any easier as external events change the landscape. Flexibility has always been important for entrepreneurs, but it becomes even more important in times like these - especially when it comes to business finances and funding.

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As a business owner, you are often forced to make decisions without having all the information available and there is often a degree of trying to predict and plan for what is to come. Although events are not usually as disruptive as they have been in recent years - especially not at the interval they have been - change is more the rule than the exception. Businesses grow, unexpected events occur and opportunities arise. 

What was once optimal for your business may not be so one, two or twelve months later. That's why we've made it easy to make adjustments so you don't get stuck with something that doesn't fit the here and now. Has an investment opportunity come up, has the revenue flow changed or do you need some extra liquidity for a period? At Froda, you can easily log in and adjust your loan to fit the needs of your business today.

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Adjust your repayment rate 

Choose between repaying the loan every weekday, once a week or once a month. The frequency of repayment has no impact on the total cost of the loan, but different repayment rates suit different businesses depending on preference and revenue flow. If your company's sales have become more continuous and ongoing, you can change to a higher frequency repayment rate to have less volatility in liquidity. Similarly, if your business gets paid for its products and services at specific times, you can lower the frequency to match the repayments to when there is money in the till.

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Make an additional payment

You can always pay off parts of your loan with Froda without any additional costs. You choose how much you want to repay and the repayment is done automatically by logging in and triggering an extra payment. By making an extra payment, you can reduce your company's running costs. You also lower the total cost of your loan as you reduce the loan amount, which means that your interest costs also go down. 

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Extending your loan

By logging in to Froda, you can always see your available borrowing capacity and increase your loan when you need to. The limit is updated in line with your company's turnover, allowing you to continue investing as your business grows and have an available buffer in case something unexpected happens. Since you are not tied to the amount you apply for, you can also start by borrowing a smaller amount if you want to make an investment, and increase the investment if it turns out well, thus keeping the risk down.

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Extend the maturity

Do you want to reduce the size of your repayments or do you need the money a little longer? You can easily log in and extend the maturity of your loan. This way you can both reduce your company's running costs and have access to financing for longer. 

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Pause amortization

Sometimes you simply need a break. That's why you can always pause the repayment of your business loan with Froda. You can pause repayments whenever you want and as often as you want for up to 6 months. When you pause the repayment, you only pay interest during the pause and thus free up liquidity that can be used for other purposes and reduce the company's expenses for a period.