Payday advance -Payday advance online lenders: quick app, instant decision

In both cases, it is not easy for the self-employed person to get a loan because the bank can not predict what your profit will be the following year. In addition, it is not possible to impose wage attachment on an independent entrepreneur. This is only possible when working for an employer. Some lenders, therefore, do not provide personal or business loans to self-employed persons as standard, even though you may already submit a neat annual statement for several years.

In this article, we explain how an entrepreneur can get business financing and what types of business loans there are.

Payday advance online lenders: quick app, instant decision


If you have found a lender like that provides a payday advance loan online, there are usually a number of general conditions attached to it.

For the starting entrepreneur

As a starting entrepreneur, you need starting capital but you do not have enough resources to finance everything. To apply for a business loan you need a clear and well-developed business plan (and financial plan). The bank can then make a financial forecast of your income. Depending on this, the lender will make a financial proposal that seems feasible to them. As a starting entrepreneur, it is slightly more difficult to get a business loan.

For an existing company

If you have a few nice years as a self-employed person, the chances are higher to get a business loan. It is stated that you must have been self-employed for at least 3 years (3 full financial years) within the same company.

Lenders will grant a business loan more quickly if the self-employed person has a sole proprietorship, a partnership under firm (VOF), limited partnership (CV) or a liberal profession. This can be explained by the fact that, in a one-man business, for example, it can be approached personally. With a private limited liability company – as the name suggests – this is not possible, which in turn creates more uncertainty for the lender.

It is often also stated that the conditions of owning a building or dwelling house can be guaranteed to be able to pay off any debts incurred. This rule applies more to private loans.

The assessment will often depend on the reason for the request. You can use a business loan for different purposes:

Types of business loans

Investment in a commercial building

Do you have an investment property? Do you want to expand your business and want to apply for refinancing? These applications usually run smoothly when you can put the necessary figures on the table.

Purchase of a car company

Most self-employed people want a car company, but this also requires financial resources. A good financing plan is to conclude a ‘financial lease contract’ whereby you pay off the company car with a kind of ‘lease contract’. Finally, the company car belongs to you.

Financing on the stock inventory

If you have large stock stocks, it is interesting to take out stock. The financing is calculated based on the amount and type of stock you have. Usually, a percentage of 50% to 70% is used that can be released for financing. Interesting companies that are eligible for this are companies from Transport and Logistics, Trade, Industry, and Business Services. It is the largest companies that use these stock financing (around € 500,000).

A counterpart is the purchase financing in which you open a business loan to purchase stock. The big advantage is that you immediately have the necessary capital so you can possibly enjoy discounts.

Debtor financing

Debtor financing is very interesting if you want to claim money that is open to debtors. In this way, you ensure that the company has sufficient working capital to be able to continue the business efficiently. The most outstanding receivables there are, the more financial resources can be borrowed. This financing is usually sharply priced.

Private equity

This financing is not on my favorite list but in some cases, there is no other possibility to take out a loan. With Private equity, the investor, in this case, gains influence or control in the company through shares. In addition, the investor is entitled to a certain percentage of the return (by means of dividends), depending on the financial contribution it has made. The investor can be a company or a private investor. This business loan is popular as an investment or accelerates the growth of the company, which is referred to as providing venture capital.

Stack financing

In most cases, you use 1 lender to take out 1 targeted business loan. With stack financing, you use different parties. You will not only look at one bank, but also opportunities that can be found in crowd funding, private investors, etc. That way you can borrow all the necessary financial resources for your company that you would normally not be able to get from one party because the risk would then be too great. A possible combination can be: an investment company and a bank to increase the growth of a company. The disadvantage is that you must have knowledge of every form of borrowing. It is, therefore, quite a task to have all the financial resources at the same time when needed.