Business loan of 1,000,000 SEK

Why take out a business loan of 1 million kronor?

A business loan of one million kronor is typically used for larger, strategic investments aimed at increasing the company’s revenue or efficiency. This could involve purchasing new machinery for a workshop, renovating a restaurant, expanding a warehouse to meet increased demand, or hiring employees whose salaries are an investment expected to pay for itself over time.

Whether you run a corporation or a sole proprietorship, a business loan of 1 million gives you the opportunity to act when an opportunity arises.

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What are the costs associated with a business loan of 1 million?

The total cost of a business loan of 1 million Swedish kronor depends on the individual interest rate and the repayment term you choose. At Froda, the interest rate is the only additional cost associated with the loan, so you don’t have to worry about any hidden or unexpected fees. 

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Sample calculation for a $1 million loan

If you want to know the total cost of a business loan of 1 million at different interest rates and terms, you can use our "Calculate Business Loans" tool. You can also use the tool to compare different offers.

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Please note that this estimate does not reflect the terms we will offer you. To find out what interest rate your business would qualify for, you can submit a free application. You’ll receive an immediate response, and there’s no obligation. 

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How large does a company need to be to qualify for a $1 million loan?

The size of the company, measured by revenue or number of employees, is less important than its financial health. Froda conducts a comprehensive assessment based on transaction data and credit reports. By analyzing cash flow and transaction history, we get a clear picture of your actual ability to pay right now.

A smaller company with a stable cash flow may therefore be granted a business loan of 1 million, while a larger company with weaker finances may be denied. 

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What collateral is required for a loan of 1 million kronor?

For a business loan of 1 million kronor, a personal guarantee is generally required as collateral. This means that the business owner personally vouches for the loan.

• Personal guarantee. One or more individuals (often the owners) assume responsibility for repaying the debt if the company is unable to do so.
• No property collateral required. You usually do not need to use your home or business premises as collateral for this type of loan.
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Can a startup take out a business loan of 1 million kronor?

Yes, it is possible, but it involves stricter requirements. If the company has achieved high revenue in a short period of time and there is sufficient transaction data to analyze, we may approve business loans of 1 million for startups, but this is the exception rather than the rule. 

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Which types of businesses are eligible for a 1 million kronor loan through Froda?

All companies registered in Sweden, regardless of their legal form, can apply for a business loan of 1 million kronor. The process and assessment are adjusted slightly depending on the legal form, as the division of liability and financial structure vary. 

• Limited Liability Company (LLC). The most common form of company, in which the company is a separate legal entity. This requires personal guarantees from one or more owners or board members.
• Sole Proprietorship. Here, your personal finances and the business’s finances are linked. The assessment is therefore based on both the business’s and your personal finances.
• General Partnership (GP). The partners are personally and jointly liable for the company’s debts, which means that a personal guarantee becomes a natural part of the security.
• Limited Partnership (LP). Similar to a general partnership, but with at least one general partner with unlimited liability and at least one limited partner with limited liability.

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How does the online application for a million-krona loan work?

The entire application process at Froda is completely digital and takes just a few minutes. Here’s how it works:

1. Start your application online and verify your identity using BankID.
2. You agree to share your company's transaction data with Froda so that we can automatically analyze your transaction history, revenue, and expenses.
3. A credit check is conducted through Creditsafe to avoid unnecessarily affecting your credit score with UC (UC-Score).
4. You'll receive a quick response, often immediately, but no later than within 24 hours.
5. If you accept the offer, you will sign digitally using BankID, and the funds will be deposited into your chosen bank account within 24 hours.

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Ready to apply? It takes less than 2 minutes and won’t affect your credit score.