Often starting a company requires loaning capital. Loans are mostly granted by banks and Finnvera. Euribor is typically used as the reference rate of interest. Loan conditions can vary a lot according to the loan. Banks often require a real security like a house or some other asset, as a guarantee for the loan.
Outside investors can also offer loans to a company. Loans that are taken from outside investors are considered to be borrowed capital, and so the investors who grant the loan, do not get a share of the company.
An entrepreneur should keep in mind, that there are different solutions to the need of short term finance. Solution to this problem could be for example: altering the terms of payment, leasing solutions, opening a credit account or getting a credit card. Entrepreneur should keep in mind the yearly intrest rate of the solution.
>> Finnvera - Entrepreneur Loan
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