Finnoscore

A Loan in 60 Seconds

Nowadays, most banks make it possible for private customers to get a consumer loan online without needing to visit the bank in person

Nowadays, most banks make it possible for private customers to get a consumer loan online without needing to visit the bank in person. We wanted to know what that might look like for the SME sector:

  • Is it easy for SMEs to get a loan online?
  • Can a company that has only recently been founded get a loan?
  • How much could they borrow?

Are you curious to know more? Well, keep reading.

There is an increasing number of digital banking services tailored to small and medium-sized enterprises (SMEs). However, most solutions only cover the bank account itself, while some also offer accounting support. When it comes to financing, the majority of banks are “old-fashioned”. For SMEs to receive any kind of funding, this often requires a visit to a bank.

Despite this, there are some institutes that have digital options. Below we have picked out a few of the solutions that we found particularly impressive:

Auxmoney works with partner banks. Auxmoney offers loans for SMEs and self-employed people. It’s possible to borrow between 1,000 and 50,000 EUR. Auxmoney promises that you’ll get a response within 24 hours at the latest. However, the conditions are not very well presented on their website.

Fidor offers a corporate loan in the amount of 3,000 EUR. Fidor promises that you’ll get a response within just 60 seconds. However, even before making an application, it’s difficult to get your head around the conditions. The company must have already been a Fidor Bank customer for at least 6 months and have at least 1,500 EUR turnover per month for the last 6 months. The company headquarters must be located in Germany. The catch is that the company must have been in business for at least 2 years.

Teylor offers financing options of between 20,000 EUR and 450,000 EUR. The term is 6 to 60 months. The company must have a branch within Germany and an annual turnover of at least 50,000 EUR. Again, the company must be at least 2 years old. The company receives an initial response immediately after submitting the application via Instant Scoring. After uploading all the documents, it takes 1 to 2 days until the customer receives a final decision. Teylor works in partnership with Solaris Bank. 

Conclusion: If a company has already been in business for several years and can prove the business is performing well, it can also get a loan online. But it’s another story altogether for new companies and companies with low turnover. These companies have very little chance of getting a classic loan.

Financing with government funding is more likely to be possible in the case of start-ups:

BmAS is the best option for companies with a migration background can obtain loans between 1,000 EUR and 25,000 EUR for up to 4 years through micro-financing.

KfW supports young companies, freelancers and start-ups with loans of up to 100,000 EUR (including up to 30,000 EUR for equipment). To get one of these loans, the company must find a partner bank (Volksbanken, Sparkassen, Deutsche Bank, Commerzbank, etc.), since the loans are not offered and granted by KfW directly. KfW assumes 80% of the credit default risk.

There is another option for start-ups when it comes to funding and that’s through crowd funding platforms. We really liked the look of the L Bank initiative for this. It offers a combination of loans with crowd-based financing and does so in partnership with the crowd funding platform Startnext. Start-ups from Baden-Württemberg can receive funding of up to 10,000 EUR if they reach the crowd funding goals.

Are you responsible for SMEs in your bank? Are you thinking of improving your digital services for your SME customers? Need help in coming up with what this might look like? Then get in touch and together we’ll find the best solution for your bank and your customers.

Iulia Bantoiu
Iulia Bantoiu is a Senior Innovation Consultant at Finnoconsult. With more than 13 years of experience in the banking sector, she supports our customers in agile projects as a product owner.

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