Running a business involves a lot of expenses. If you want to achieve your business goals, you can't stand still. The company needs to grow with the financial means to do so. If you are wondering where to get it from, consider the two most popular solutions: a working capital loan or a credit line in your account. Which option is more advantageous?

Both working capital credit and credit line in the account are solutions with advantages and disadvantages. Their diverse nature makes it possible for every entrepreneur to choose an option tailored to his or her requirements.

Working capital loan

Working capital loan was designed for entrepreneurs who want to raise funds for any purpose, e.g. payment of current receivables resulting from invoices, expenses related to the development of the company, e.g. purchase of new equipment, equipment, etc. It is only granted to undertakings that are active on the market for at least a few months. The maximum loan amount depends on the creditworthiness.

Many banks offer loans to companies, e.g. Revolver. This offer is dedicated to entrepreneurs who do not want to waste time waiting in queues and completing formalities. The tachometer allows you to obtain up to 300 000 PLN for any purpose, including the development of your business. To get it, just submit an online application and attach a history of company accounts for the past six months. After obtaining a positive credit decision, the money goes to the applicant even within one day.

Credit line in the account

A credit line in the account is nothing more than a revolving credit. The Bank, within its creditworthiness, grants the company a maximum loan amount. The entrepreneur, depending on the needs, may dispose of the funds, allocating them for any purpose. Unlike a working capital loan, you don't have to spend all your money. So you can choose the funds and return them as you need them. Interest is calculated only on the amount borrowed and not on the total limit.

Often the credit line in a bank is lower than the maximum amount of a working capital loan. So if you are looking for a solution that gives you access to more resources, renewable credits will not be a good option.

Before you choose a loan, compare offers

Let's assume you've already had your choice of credit type. However, before you decide on a particular product, compare the available offers. Consider many factors, not just interest rate issues. Take into account, among others, additional commissions, maximum loan amount, loan term, necessity to open a company account, formalities, access to additional amenities. If you analyze the available offers well, you will surely find a loan that is maximally adjusted to your needs and expectations. A loan that will allow your company to spread its wings and you to become a well-established entrepreneur on the market.

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