How to Apply for a Business Loan
The application process takes about 10 minutes online. Decisions arrive within 1-2 hours. Here is what you need and what to expect at each step.
TL;DR
Applying for a business loan involves four steps: submit a quick online application, provide financial documentation, receive and review the offer, then sign and get funded. The whole process takes 2 to 4 business days. Having your documents ready speeds up approval significantly.
01
Submit Your Application
Fill out the online form with your company details: business ID (Y-tunnus), company name, contact information, desired loan amount, and purpose. Most forms take about 10 minutes. You will also provide a brief description of your business and estimated annual revenue. Apply to multiple lenders simultaneously to compare offers. This is standard practice and does not negatively affect your credit.
02
Provide Documentation
Most lenders pull your company's financial data automatically from business registers (PRH, Asiakastieto). You may need to supplement with: the two most recent financial statements, a current-year income statement, a balance sheet, bank statements from the past 3 to 6 months, and tax payment records. Sole traders should also have personal tax returns available. Digital lenders often require fewer documents than traditional banks.
03
Receive and Review the Offer
The lender sends you a loan offer specifying: the approved amount, interest rate, effective annual rate, opening fee, monthly payment, total repayment sum, and any conditions. Compare offers using the effective annual rate (todellinen vuosikorko), which is the only figure that includes all mandatory costs. You are not obligated to accept any offer. Take time to compare if you applied to multiple lenders.
04
Sign and Receive Funds
Accept the offer by signing electronically (bank credentials or mobile ID). After signing, funds are transferred to your business bank account within 1 to 3 business days. Some lenders offer same-day transfers. You will receive a final loan agreement and repayment schedule for your records. Set up automatic payments to avoid missed installments.
Documents Checklist
Essential documents: valid Y-tunnus (business ID), two most recent annual financial statements (tuloslaskelma and tase), bank statements (3 to 6 months), current tax certificate (verovelkatodistus showing no tax debts). Helpful extras that improve your chances: a business plan or description of loan purpose, cash flow projection for the loan period, existing customer contracts or order backlog, and a list of current debts and financial commitments.
- ✓Valid Y-tunnus (business ID)
- ✓Two most recent annual financial statements
- ✓Bank statements (3–6 months)
- ✓Current tax certificate (verovelkatodistus)
- ✓Business plan or description of loan purpose
- ✓Cash flow projection for the loan period
Tips for a Stronger Application
Clean up your credit before applying: pay any outstanding debts and resolve payment defaults. Apply when your financials look strongest (after closing a profitable quarter). Request a specific amount with a clear purpose rather than "as much as possible." Include a brief note about how the loan will generate revenue or reduce costs. If rejected, ask the lender for the specific reason. Often a Finnvera guarantee or a co-applicant can resolve the issue.
- ✓Clean up your credit before applying — pay outstanding debts and resolve defaults
- ✓Apply when your financials look strongest (after closing a profitable quarter)
- ✓Request a specific amount with a clear purpose rather than "as much as possible"
- ✓Include how the loan will generate revenue or reduce costs
- ✓If rejected, ask for the reason — a Finnvera guarantee or co-applicant may resolve it
Frequently Asked Questions
- How long does the application take?
- The online form takes about 10 minutes. Total time from application to funding ranges from 1 to 4 business days depending on the lender and the complexity of your financials.
- Does applying hurt my credit score?
- Credit inquiries by business lenders are normal and expected. A single inquiry has minimal impact. Multiple inquiries within a short period (when comparing offers) are treated as one event by most credit agencies.
- Can I apply to multiple lenders at once?
- Yes, and you should. Comparing multiple offers is standard practice. Each lender assesses risk differently, so rates and terms can vary significantly. You are not committed until you sign a specific loan agreement.
- What happens if I am rejected?
- Ask the lender for the rejection reason. Common causes: insufficient revenue, too-short operating history, existing payment defaults, or high existing debt. Solutions include applying for a smaller amount, providing additional documentation, seeking a Finnvera guarantee, or trying an alternative lender.
- Do I need a business plan?
- For standard SME loans under 100,000 EUR, most online lenders do not require a formal business plan. For larger amounts or bank loans, a brief plan describing the loan purpose and expected return strengthens your application.
- Can I apply with a payment default on my record?
- An active payment default makes approval very difficult with most lenders. Some providers consider applications if the default has been resolved and you demonstrate improved financial stability. Clearing defaults before applying is strongly recommended.
- Is a personal guarantee required?
- It depends on the loan amount and your company's financials. Loans under 50,000 EUR from online lenders rarely require one. Bank loans above 100,000 EUR commonly require personal guarantees from owners holding more than 20% of the company.
- Can I apply on behalf of someone else?
- The application must be submitted by a person authorized to represent the company (as registered in PRH). Board members and registered signatories can apply. Others need a written power of attorney.
