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Euro Loan and overdraft credit
A Euro loan is a loan issued to retail businesses and can be compared to a cash advance. It can be a good alternative to an overdraft credit on the business account. The lenders are internationally oriented banks. The loan can be issued in euros or in another currency.
Terms and benefits
The maximum term is 12 months. During this time a fixed interest rate is charged, which is often significantly below the rate customary for other loans. The retailer receives cash immediately and can significantly improve their liquidity. With the money they can purchase goods or services that they urgently need and can resell in the short or long term. In the vast majority of cases the loan is paid out in euros. However, if the retailer wishes, another currency is also possible.
Loans for retail businesses
Retail businesses are increasingly finding it difficult to obtain a loan from a German or foreign bank. This applies even if they are willing to pay higher interest rates than usual or if their creditworthiness is very good. The consequences can be serious. If the business does not have sufficient financial resources, it cannot make investments or purchase the goods and services it urgently needs to continue operating or to resell. In this case a Euro loan can be the solution. The bank's assessment, approval and disbursement of the loan amount are straightforward and can take place within a very short time. Since the entrepreneur has up to 12 months to repay the Euro loan, their liquidity is secured. This term is a decisive criterion for the continued existence and ability to act of the business.
Euro Loan and overdraft credit
The overdraft credit for business customers is comparable to the overdraft facility for private customers. It can be used and repaid flexibly at any time. Fixed installments and a set term are generally not specified. It is very important not to exceed the credit limit set by the bank. Interest is not charged for the availability of a certain credit amount, but only for amounts actually used. However, it must not be concealed that the interest rates on an overdraft credit are very high and depend not only on general market conditions and the bank's terms but also on the borrower's creditworthiness. They will almost always be higher than the interest rates on a Euro loan. A Euro loan is available for amounts between 50,000 and 100,000 euros. Occasionally funds are also paid out in higher or lower amounts.