Banks allocate loans to companies, just like loans to retail customers. He also makes various studies on factors such as income status and credit registry. In order for these factors to occur, that is, to contain data that can be analyzed, the company must have carried out a certain level of business or have been working with banks for a long time.
In this context, if the current companies of the company managers who want to use credit have not been established by merging with a company that has been operating before, they must have been doing business for a certain period of time and their balance sheets should be revealed.
Is Credit Given To The Newly Founded Company?
If there is no incentive or campaign for newly established companies, credit allocation is not made. The reason for this is that banks do not want to risk their capital and try to stay away from bad loans.
Entrepreneurs who want to use credit for their newly established company should try to use loans with applications such as government incentives. Commercial loan applications made directly to private banks will cause a negative response for newly established companies.
What Is the Meaning of a Newly Established Company?
The newly established company balance sheet has not yet been released, it just describes the company with data on its field of activity and its existence.
For this reason, it would not be wrong to define companies that have not yet established a balance sheet and whose profit and loss accounts cannot be calculated as a newly established company, instead of directly sharing them. The time it takes for the company to reach a certain maturity is determined as 1 year before the banks.
How many years should the company be?
Depending on the size of the loan to be allocated, how long the company has been operating will be equally important. In this context, entrepreneurs who do not exceed their financial volume and want to use loans in a way that is compatible with their balance sheet can start using loans from banks 1 year after establishing their companies.
However, this period is not a limitation or obligation determined by law. It should be kept in mind that, depending on the nature of the work done and the level of profitability, banks can always negotiate with the SME unit and ask for a proposal.
It may also be beneficial for the operators who have not passed 1 year after starting their company to search for personal loans if they want to take out a loan.
Which Companies Can Get More Loans?
Some types of companies are considered to be more authoritative and are able to withdraw loans with higher limits since they require higher capital in terms of the establishment process. For this reason, it is possible to list the loan to be allocated as a joint-stock company, limited company, and private companies.
While joint-stock companies and limited companies can use much larger amounts of loans, loans that individual companies can use will often be attached to some obstacles to the capital ratio. Therefore, if the company has just been established, it is useful to think ahead and be aware of the various advantages of limited companies.
In addition to the difference created by the entrepreneur who founded the sole proprietorship by putting a little more capital in terms of the amount of credit that can be used, the limited companies also provide various tax advantages.