Business loan of 2 million
Why take out a business loan of 2 million kronor?
A business loan of 2 million kronor is typically used for strategic investments that require more capital than the company’s current cash flow can cover, such as hiring key personnel, making major equipment purchases, or moving to new premises.
This amount is ideal for companies that are already on solid ground but need the next round of funding to really accelerate their growth. Perhaps you have an incoming order that requires you to restock now, or an expansion that can’t wait until the end of the next quarter. Access to liquidity at the right time is often what distinguishes a growth company from one that’s treading water.
What does it take to borrow 2 million kronor?
To be approved for a business loan of 2 million kronor, your company typically needs to have stable revenue and be able to demonstrate a positive operating profit.
A common rule of thumb is that the amount you can borrow is equivalent to a few months’ revenue, which means your business would likely need to generate millions in monthly revenue to be approved for a business loan of 2 million. However, the assessment is made on a case-by-case basis and is based on the company’s cash flow, risk, and creditworthiness.
Can a startup borrow 2 million kronor?
It is difficult for startups to secure a loan of 2 million kronor because they lack the track record needed for a credit assessment.
Without transaction data, it is difficult to assess your ability to repay. Expect to start with a lower amount and build up your revenue and credit history as your business grows.
What types of companies can borrow 2 million through Froda?
Froda offers business loans of 2 million, regardless of the company’s legal form, provided that the company is registered in Sweden and meets the basic requirements for revenue and creditworthiness:
How do you apply for a business loan of 2 million kronor?
Application. Fill in your company information and sign with BankID. The application is free of charge and non-binding.
Credit check. We review your application and assess your creditworthiness through Creditsafe—not UC. It usually takes just a few minutes, but we always respond within 24 hours.
Loan offer. If your application is approved, you will receive an offer that includes the terms of the agreement, the interest rate, and other conditions.
Payment. Sign digitally, and the funds will be transferred to your business account—usually the same day.
What collateral is required for a loan of 2 million kronor?
The most common practice is for you, as the owner, to personally guarantee the entire amount. There are also alternative forms of security:
- Personal guarantee. As an individual, you agree to repay the loan if the company is unable to do so. Standard market requirement.
- Business mortgage. You pledge a portion of the company’s assets—inventory, accounts receivable, or machinery—as collateral for the loan.
- Real estate mortgage. If you or the company owns a commercial property, it can be used as collateral and have a positive impact on the interest rate.
How much does a business loan of 2,000,000 SEK cost?
The interest rate is the only additional cost. It is determined on a case-by-case basis based on your company’s creditworthiness and the repayment term you choose. If you’d like to compare different scenarios, you can use our loan calculator. Always remember to compare the total cost, not just the nominal interest rate.
Ready to apply? It takes less than 2 minutes and won’t affect your credit score.
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