Companies with no income and bank loans. How do you get a loan when you lose?
As credit brokers, we often meet companies that show no income. Is the majority of businesses doing so badly or is it just a matter of tax avoidance? Do companies without income have something to look for in banks? It is normal for none of us to like to pay taxes. As a result, some entrepreneurs decide to optimize to minimize taxes, which in turn leads to a visible loss in the company’s financial documents. The loss can also be caused by considerable funds spent on investment and company development.
Creditworthiness and bank credit for the company
Most banks determine their creditworthiness in a simple way. Customer net income, which comes out after paying all taxes * 50%. So the customer can allocate up to half of his income to bank installments. What if the company shows no income ? Unfortunately, banks that approach this matter will not help. Companies with no reported income need to look for other options.
In this situation, you will need the help of a professional adviser or credit broker. He can justify why the client has not shown income in the recent period, or run a loan based on the income itself . The bank, seeing that the client has stable inflows, has long-term regular clients who provide income and is able to credit the client.
A bank loan for a company on PIT or KPIR
It is not necessary to provide the bank with a complete set of income documents . Banks approach this issue differently. Some banks require the customer to have the last PIT-U accounted, and others just need a collectively cleared Revenue and Expense Book for the entire year. At the stage of analysis, of course, the bank may request other documents, but usually one of them usually needs it. Therefore, the role of the intermediary is to familiarize yourself with income documents and inference on the document that provides a better chance of granting a loan . Advisors or brokers based on their professional experience are able to determine in what bank what amount we are able to get for our business.
A simplified business scenario is also possible. Application without income documents. The customer declares his income generated from the activity on the loan application. The banks then offer correspondingly smaller amounts, because they are not amounts up to USD 500,000 as in the case of income documents, but a maximum of USD 50,000. Many business people do not always have time to collect income documents and submit them to the bank. They need a simplified procedure for granting a loan, and this is undoubtedly the loans based on a statement to companies.
Company loan based on account turnover
Another option that is worth using in the event of a lack of creditworthiness are loans granted on the basis of turnover on the company account. The bank will ask the customer for an extract from the company’s account history from the last three months. Adds the amounts of expenditure received and on this basis decides to grant a loan. It is a good solution during considerable costs incurred by the company, in the case of a company with no income.