Business Financing Options
Two core products cover most SME financing needs: business loans for planned investments and invoice financing for working capital. Both available without real estate collateral, decisions typically within 1-2 hours.
TL;DR
Companies can access business loans with competitive rates and invoice financing with 100% advance of invoice value. This page covers both products, how they compare, and which one fits your situation.
Business Loans
A business loan gives you a lump sum repaid in fixed monthly installments over 3 to 120 months. Amounts start from 5,000 EUR with competitive interest rates, with the typical rate depending on your company's financials and credit history. Most lenders charge an opening fee of about 2.5%. Business loans work best for equipment purchases, expansion projects, hiring, and other planned investments where you know the exact amount upfront. No collateral is required for unsecured loans from most providers. Decisions arrive within 1-2 hours, funds within 1 to 3 business days.
Business Loan
Invoice Financing
Invoice financing converts your unpaid B2B invoices into immediate cash. Instead of waiting 14 to 120 days for customer payment, you receive 100% of the invoice value within 1-2 hours. Fees range from 1.5% to 5.0% per invoice depending on the amount, your customer's creditworthiness, and payment term length. Single invoices from 500 EUR qualify. This is the fastest way to free up working capital without taking on long-term debt. You keep control of your customer relationships and can finance invoices selectively.
Invoice FinancingLoans vs. Invoice Financing: Which One?
Choose a business loan when you need a specific amount for a planned investment and prefer predictable monthly payments. Choose invoice financing when your cash flow is uneven because customers pay slowly. Many companies use both: a loan for a major purchase and invoice financing to smooth monthly cash flow. The key difference is cost structure. Loans have competitive annual rates. Invoice financing has per-invoice fees (1.5% to 5.0%). For short-term needs under 90 days, invoice financing is often cheaper. For needs lasting over 12 months, a loan usually wins on total cost.
| Business Loan | Invoice Financing | |
|---|---|---|
| Best for | Planned investments, fixed amount needed | Working capital, uneven cash flow |
| Cost structure | Competitive annual interest rate | 1.5%–5.0% fee per invoice |
| Repayment | Fixed monthly installments, 3–120 months | No repayment — customer pays the provider |
| Balance sheet impact | Appears as debt | Typically off-balance-sheet |
| Speed | 2–4 business days from application to funds | 1–2 hours per invoice after setup |
Business Loan
- Best for
- Planned investments, fixed amount needed
- Cost structure
- Competitive annual interest rate
- Repayment
- Fixed monthly installments, 3–120 months
- Balance sheet impact
- Appears as debt
- Speed
- 2–4 business days from application to funds
Invoice Financing
- Best for
- Working capital, uneven cash flow
- Cost structure
- 1.5%–5.0% fee per invoice
- Repayment
- No repayment — customer pays the provider
- Balance sheet impact
- Typically off-balance-sheet
- Speed
- 1–2 hours per invoice after setup
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