Banks typically offer credits and loans to companies that has an established customer base and a proven cash flow.

Experience

Within financial products and services banks have a varied experience. Bank funding like loans and credits are suited for companies in the more mature stage of their life cycle with a proven cash flow. 

How much do they invest?

• Credits can vary from approximately € 6.000 and up. They are dependent on the revenue of the company.
• Loans can vary from € 10.000 and up depending on the purpose, time horizon, and the security provided for the loan.

How do they work?

An advisor will evaluate your request based on all the submitted material.  You will then be contacted for further dialogue where attention I given to self-financing and security for the loan. Maybe there are different possibilities to fund what you need to fund.

This makes a difference to them

• Business plan: Can you provide the bank with a business plan when applying for the loan?
  As part of the business plan the bank would like to see the historical financial figures of the company, a thorough analysis of the market you are operating in or about to enter, an evaluation of your customers and suppliers and a description of the owners or managers experience and skills within the market.

• Budget: What do you want to fund and how does this affect your cash flow?
  Start with a description of what you seek to finance, whether it is a physical object or optimizing your working capital. Explain how you see this change your cash flow, for example in terms of increased production or a more efficient process. Banks especially like, if you have taken into account the increased finance costs.

• Self-financing: Can you or your company finance some of funds needed?
  In most cases it is necessary that the company itself or some of it’s owners also provide capital. The Danish Growth Fund (Vækstfonden) might also grant a growth loan in relation to your loan application.

• Security: What kind of security can you offer for the loan or credit for which you are applying?
  Banks are typically looking for security in physical assets such as real estate, buildings, machinery and IT equipment. If you can provide security in good credit agreements with customers and suppliers, a credit can be provided for salary payments, rent, inventory, leasing expenses. What you want to loan for may also be eligible for a growth security (Vækstkaution) at The Danish Growth Fund.

A good pitch for them

A bank typically prefers to get a well-rounded amount of information. This includes a budget with a description of what you want to finance (1), an overall business plan (2), a description of the security provided for the loan together with details on the level of self-financing (3).
They prefer to receive these three main elements as documents submitted through mail or online form.