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Digital business loans for SME

Business loans are a key instrument for the growth and success of SMEs. When growing a business or managing liquidity shortfalls, it is often a good decision for entrepreneurs and management to borrow capital.

Teylor specialises in supporting medium-sized companies in Germany with unsecured business loans ranging from EUR 50,000 to EUR 1.5 million. Fast payouts within just two working days and our personalised service make us a trusted partner for companies looking for financing options.

Why getting a business loan from Teylor

Teylor is a digital credit platform that specialises in lending to small and medium-sized enterprises (SMEs). We offer fast business loans tailored to your needs. With an unsecured loan and fast payouts within two working days, Teylor offers perfect solutions for every business.

Our experienced team of credit analysts uses modern tools to conduct a comprehensive risk and credit scoring as well as an individual qualitative assessment of your company’s financial situation. You may opt for a consultation with our financial advisors, either via phone or by e-mail. This consultation and the loan application are free of charge.

As an SME finance expert, Teylor has an excellent understanding of your company’s needs and can provide you with an accurate analysis of your liquidity and assets during the application process. This analysis will be used as the basis to calculate your loan conditions and helps you plan your investments.

Everything you need to know about business loans

• Business loans: Also known as „company loans”, „commercial loans” or „business credit”. These are financing options for companies that require external capital. The loan amount is repaid with interest over the term of the loan. Many business loans are earmarked for a specific purpose within the company. At Teylor, you can also apply for business loans without a specific purpose. The term can be short or long-term, depending on your needs, and includes a variety of credit instruments and loans, from overdraft facilities to investment loans. At Teylor, we offer business loans specifically tailored to small and medium-sized enterprises (SMEs) with unsecured fixed interest rates and a customised process.
• Working capital loan: Working capital loans enable you to finance the purchase of new materials or goods. Many SMEs use working capital loans when their business has irregular income and the purchase of goods needs to be paid before a customer's invoice is settled. Companies take out working capital loans to avoid liquidity challenges and improve cash flow management.
• Overdraft facility: Overdraft facilities allow your company to overdraw the company’s bank account balance in agreement with the bank. Depending on the bank, you may also overdraw up to a certain amount without any loan agreement. That said, overdraft facilities are expensive. Teylor does not offer this form of financing, but we can convert your overdraft facilities into working capital loans to reduce your financing costs. Another alternative is factoring, which allows you to borrow against the value of your outstanding receivables.
• Investment loan: This type of loan is suitable if your company wants to grow and make investments - e.g. in machinery or vehicles. In contrast to working capital loans, investment loans are designed for the long term and have a fixed repayment agreement. An investment loan is generally helpful to finance growth, but banks typically only grant investment loans up to 50 percent of equity. This can become a challenge especially when your business is growing fast. As one of our customers once put it: 'I will only get an investment loan from traditional banks when I no longer need it.' Talk to our team, we can offer you a variety of financing options.
• Commercial loans: „Commercial loan” is a broad term referring to all loans for commercial purposes. This includes, for example, loans to finance commercial property such as factory buildings, workshops, warehouses, offices or hotels. Financing for the maintenance of existing machinery or equipment to maintain a business are also considered commercial loans. Companies often choose commercial loans with longer loan terms because this allows them to keep the monthly borrowing costs low, optimise the overall capital structure and keep the business cost-efficient.

Business loan purpose

As a corporate decision-maker, you are looking for ways to expand your company and increase your competitiveness. Therefore, you may not always be able to name one specific purpose for a business loan, but instead need liquidity for several purposes.

Banks often only allow you to borrow only for one specific purpose, which restricts your flexibility. This is called an „earmarked loan”. However, you can also take out non-earmarked loans without a specified purpose, where you can use the capital as you wish.

An earmarked loan is tied to a specific purpose that is specified in the loan agreement. You must use the borrowed capital for this specific purpose and cannot use it for any other purpose. As these loans usually carry a lower default risk, you get slightly more favourable conditions.

Both types of loan have their advantages and disadvantages. While non-earmarked loans offer you more flexibility, earmarked loans often come with lower interest rates. It is important to carefully consider the terms and restrictions of both types of loan to make the best decision for your business.

It is best to contact our financing advisors directly. We will advise you on the best option with the possible conditions.

How you can improve your company's credit rating and collateral for a business loan

Your company's creditworthiness and collateral are key factors when obtaining a business loan. Your Crefo score is an indicator of how likely it is that you will be able to repay the loan. The lower the score, the better.

If you have already taken out several loans, this can affect your company's equity ratio and make it more difficult to get another loan. A low credit rating can mean that you cannot get a loan or have to pay higher interest rates.

However, there are alternatives to the credit rating procedures used by traditional banks. Providers such as Teylor use internal scoring systems that also take the future potential of your business and entrepreneurial factors into account. For example, if your company is active in a growing market or is expanding, our scoring methods may assess your company more comprehensively than a traditional credit rating index. As our digital scoring enables us to include a large number of metrics in the assessment, we may improve your chances of receiving credit approval.

Business loans for investments

Business loans are a common instrument used by SMEs to finance investments, such as the modernisation and digitalisation of business operations or the development of new products. Solid financial planning is critical to secure the future viability of the company and because such projects require considerable additional funds that cannot be raised from operating cash flows alone.

In addition to financing future investments, business loans are also used to pre-finance large orders, bridge liquidity bottlenecks and acquire working capital. Rapidly growing companies benefit in particular from business loans for investments such as new locations, production lines or expansion into new markets.

Financing larger projects requires professional support. Companies should turn to an experienced consultant or a platform such as Teylor to discuss the specifics and challenges at an early stage.

The use of business loans as growth financing can be particularly rewarding for both sides - borrowers and lenders. Companies operating in booming markets may at some point reach a growth ceiling where they can no longer continue to grow without additional capital. Growth financing or medium to long-term business loan enables companies to maintain their momentum and keep up with the competition.

When deciding to take out a business loan, companies should consider the impact on their capital structure and diversification of their financing sources. The company's total return on capital is crucial for taking out a business loan, as the leverage effect can have a positive or negative impact on the return and cost of capital.

The first step towards a company loan: Tips for preparing your documents

If you need a business loan, preparing your documents is the first step. Whether you approach banks or online platforms such as Teylor, potential lenders need information about your company to assess your creditworthiness.

To increase your chances of loan approval, you should compile important documents such as your company's annual financial statements and BWA. Our financing advisors will help you prepare your documents. Simply submit an application via our website and we will get back to you as soon as possible.

We require the following documents to process your business loan immediately:

• Annual financial statements for the previous two fiscal years (if available)
• An up-to-date „Betriebswirtschaftliche Auswertung” with „Summen- und Saldenliste” (not older than three months)
• Bank statements for the last three months (not older than 14 day)

Business loan conditions and costs - what you need to know

If you need a company loan, you should know the conditions and costs. In principle, borrowing costs depend on many factors, such as the loan amount, the term of the loan, the financial situation and creditworthiness of your company and any collateral you may have provided.

Repayment terms are important for your liquidity management. One option is to back a business loan through fixed repayment rates, where you continuously pay back the same amount, meaning you reduce the outstanding loan balance as well as the interest due. Another option is an annuity, where the total amount of interest due and repayment amount remain constant over time. The bullet repayment is a third variant in which you repay the entire loan amount in one go at the end of the term.

Any loan offer should provide you the standard market interest rate and transparent processing fees. Teylor offers high transparency and simple cost structures. Also note that traditional lenders often have hidden fees. You should insist on having costs explained to you in detail to avoid any surprises.

How to apply for a Teylor business loan

• Apply in minutes: Complete our simple online application and receive a non-binding offer immediately.
• Non-binding offer: The offer is customised and includes indicative borrowing terms. You will receive this offer online and free of charge.
• Upload documents: Upload the required documents online. We will treat your data securely and confidentially.
• Identification and digital signature: Identify yourself using video legitimisation and sign the contract digitally.
• Payout: We will check your documents and transfer the invoice amount to your account within two business days.

The advantages of Teylor's online business loan:

• Fast and digital process: We process business loan applications fast and efficiently. This gives you immediate access to the funds you need to make urgent investments or cover operating expenses.
• Flexible financing options: Our business loan is flexible and can be customised to your company's individual needs. Whether you need to finance working capital, investments or growth: We offer customised solutions.
• Improved liquidity: By taking out a company loan you get fast access to liquidity. You can focus your financial resources to manage your working capital more efficiently and avoid liquidity bottlenecks.
• Unsecured loans: Our business loans are unsecured, so no additional collateral is required. This facilitates access to financing and reduces the administrative complexity.Personalised advice: Our experts have extensive experience with business loans and know the specific challenges and requirements of SMEs. We will advise you throughout the entire process.
• Personalised advice: Our experts have extensive experience with business loans and know the specific challenges and requirements of SMEs. We will advise you throughout the entire process.
• Attractive conditions: We look at each customer individually. Thanks to our customised conditions, we can offer you attractive and fair borrowing conditions.