Business loans to limited liability companies (A/S)

Limited liability companies are a popular form of enterprise, and at Qred we have already helped some of them with financing.

What is a business loan for limited companies?

A business loan for limited liability companies (A/S) is a flexible financing solution designed for companies that are registered as public limited companies and want capital to grow, invest or cover current expenses. Whether your business needs to invest in new equipment, finance a major project or boost cash flow, a business loan can help you achieve your goals. At Qred Bank, we specialize in helping small and medium-sized companies such as limited liability companies with a simple and fast loan process that gives you access to up to DKK 3 million.

Why choose Qred Bank for business loans for limited companies?

At Qred Bank, since 2015, we have focused on supporting small and medium-sized enterprises with their financing needs. We understand that companies often need fast and flexible solutions, which is why we have created a digital application process that makes it easy and quick to access capital. With a business loan from Qred Bank, limited liability companies can borrow up to DKK 3 million, and the money can be in your account on the same day.

How can a business loan for limited companies strengthen your business?

A business loan can be a decisive factor for your business to achieve its growth goals and ensure stable operations. Here are some ways in which a business loan can help a limited liability company:

• Investing in new equipment and technology
  To remain competitive, it may be necessary to invest in modern equipment and technology. A business loan can provide you with the funds needed to upgrade your facilities and improve efficiency.
• Expansion of business activities
  Do you want to expand your company's capacity or geographic reach? A business loan can help you finance expansions that allow you to reach more customers and increase earnings.
• Strengthening liquidity
  Limited liability companies may need to ensure stable liquidity in order to cover day-to-day expenses and contingencies. A business loan gives you the flexibility to maintain a healthy economy and deal with seasonality.
• Marketing and branding
  Increased visibility and enhanced branding can make your business more attractive to customers and partners. With a business loan, you can finance marketing campaigns that promote your brand and attract new customers.

Apply for a business loan for a limited company with Qred Bank today

To apply for a business loans for limited liability companies at Qred Bank is easy, fast and safe. Whether you need capital for investments, expansions or cash management, we are ready to help you with a flexible financing solution. Visit our website, fill out the application form, and get a response within an hour. With a business loan from Qred Bank, you can focus on what matters most — running and growing your business.

What is a limited liability company?

A limited liability company — also abbreviated A/S is one of the most popular forms of business. Limited liability companies are relatively different from, for example, a one-man company or a limited liability company.

Above all, it is a question of responsibility, financing and the management of the company. In a limited liability company, a distinction is made between a legal person (the limited liability company itself) and natural persons (for example, the board of directors and the director).

It is the natural person who takes out the business loan and is responsible for the repayment of the loan.

What are the benefits of lending to a limited liability company?

By borrowing to the limited liability company, all borrowing costs such as interest, monthly fees and incorporation tax become deductible. Thus, the cost of the business loan reduces the corporate tax.

Therefore, in some cases it can be very beneficial to borrow money from the company.

By lending money to the limited company, the company pays for the loan and the costs are distributed among the owners, with the large shareholders accounting for a larger part and the small ones for a smaller part.

Lending money to a newly started limited company

As a rule, the borrower is always required to be personally liable for the loan to start-up companies, which is not particularly strange, since new companies often have quite low turnover. Unfortunately, it is often in the start-up phase that a limited liability company needs extra money to get the business going.

Loans to (A/S) without binding personally

In order for a limited liability company to be approved to borrow money, the owner or another person often has to bookend personally for the loan. This implies that you, as a borrower, agree that the repayment requirement is incumbent upon you and you are able to pay it in full.

It is quite unusual for start-ups to be granted a business loan without requiring the owner to be personally liable for the loan.

Requirements for limited liability companies

• At least 400,000 in share capital must be deposited either as assets or cash
• A limited liability company must have both an executive board and a board of directors. The Executive Board shall consist of at least one person, while the Board of Directors shall consist of at least three persons
• Limited liability companies are required by law to prepare and report an annual report no later than 5 months after the end of the financial year
• Smaller companies can opt out of auditing if the company meets certain conditions
• You need to draw up an ownership book with an inventory with the names and addresses of those who own shares in the company

Good to know about the corporate form limited company

• One or more people or companies can start a limited company
• The name of the limited liability company is protected throughout the country
• The general rule is that those who own shares only risk losing what they have paid for their shares.