You started your business last year and it’s doing so well that you need to hire a few more people and expand your workspace?
Or have you just graduated from college and have a business idea that you don’t know how to finance?
Or maybe you’re a woman and want to expand your business to include some additional services, and you need money for the daily functioning of your business?
Below we present a loan financing option for entrepreneurship of young people, women and beginners.
In any case, one way you can finance your ideas and everyday business needs is through credit financing.
Although it may be the last option you would choose (if you take into account the obligations it entails), loan financing does NOT necessarily have to be expensive and complicated.
Especially if you belong to one of the groups for which there are FAVORABLE loan options: young entrepreneur (1), female entrepreneur (2) or beginner entrepreneur (3).
What can be financed with a favorable credit option?
The affordable option currently available on the market focuses on financing the following:
· starting, improving and modernizing business
· introduction of new technologies
· capacity increase
· development and introduction of new products or services
· a smaller part of the costs of salaries for new and existing jobs, raw materials and supplies, and current business liabilities (overhead costs, lease of business premises, general expenses)
· purchase or renovation of business premises
What is the favorable option?
Some commercial banks have developed their own special programs, e.g. Erste Bank for beginner entrepreneurs.
But currently the most well-known and most affordable option on the market is HBOR’s loan option for youth, women and beginners.
With this option, you can finance the previously mentioned costs in a loan amount of up to EUR 400,000, and of the amount of eligible costs, you will have to finance 15% yourself (up to 85% of the investment value is financed, or up to 100% of the value for loans up to EUR 100,000).
The minimum loan amount is EUR 50,000, and the repayment period is up to 12 years and up to 3 years of grace period.
The interest rate is currently 3.90% per annum (fixed), and depending on where you operate, you can also get a reduced interest rate with a subsidy from the county / city / municipality.
It is important to emphasize that with a loan you can finance working capital (salaries, utilities, etc.) up to 30% of the contracted amount of the loan, and the term of using the loan is, as a rule, up to 12 months.
For the last 12 years, we have been helping entrepreneurs obtain financing. We are monitoring all available sources of funding. If you want to save time preparing your application and need someone to make communication with the bank easier, contact us so we can be your right hand!
Author: Tatjana Štefanac Zjalić
Glossary:
(1) Young entrepreneurs – young people (up to 41 years old) who together own more than 50% of the ownership
(2) Beginner entrepreneurs – establishing a business entity for the first time or a business entity has been operating for less than 3 (three) years; they have not been or are currently the owners/co-owners of another business. entity with more than 30% stake
(3) Women entrepreneurs – at least one or more women together own more than 50% of the ownership and a woman is in a management position
(4) HBOR – Croatian Bank for Reconstruction and Development, a development and export bank, was established with the aim of stimulating the development of the Croatian economy
