When a bank grants a bank loan to your business , it will charge several types of fees . Business loans generate, first of all, interest . They remunerate the risk taken by the establishment as well as the provision of funds. But these are not the only costs you will encounter. Indeed, you can also face application and warranty costs . Finally, if you go through a professional financing broker, you will have to pay him a commission
The main bank charges for a business loan: interest
The professional bank loan is characterized, like any other loan, by its interest rate . This rate appears in the loan agreement signed by the requesting company and the financial institution. Banks are free to set their rates, subject to not exceeding the usury rate . In addition, the company has the possibility of negotiating it .
In practice, a bank does not lend at any rate. The proposed rate may result, in part, from a scale but it may be subject to upward or downward adjustments depending on:
As such, the funding application file that you will submit plays a crucial role. To benefit from the best possible rate, you must highlight your project (especially its profitability) and prove the confidence you have in its success.
Interest is calculated on the outstanding capital. To find out their cost to your business, simply consult your loan proposal or, if you have already signed it, your final loan offer.
Other costs generated by the granting of professional financing
The analysis of your professional loan application file requires the intervention of an investment banker. The time it spends generates costs for the credit institution (reading the project, understanding, analyzing the profitability, checking the financial balances, issuing a proposal, etc.).
It is for this reason that banks generally charge processing fees . Their amount depends on the nature of the funding and the scale of your project. They can be fixed or variable but they are only invoiced if the bank responds to your request, that is to say that it agrees to finance you .
In addition to the application fees, a bank may require guarantees . Their purpose is to guarantee the payment of the sums borrowed . There are different levels of guarantees, the most complete (for a bank) being the contractor’s personal surety.
Otherwise, the type of collateral required depends on the well-funded nature. We can mention in particular:
The mortgage that can encumber real estate,
The pledge which may relate to securities (shares or shares), a goodwill or movable property (it is called a pledge in this case).
Setting up guarantees, and sometimes lifting them, requires:
The intervention of a professional (a notary for example) who receives remuneration for the drafting of the deed,
And the payment of duties (stamp duties, land registration, etc.)
If you use a professional financing broker, you will have to pay him for his work: collecting information, putting together the file and presenting it to different banks.
Indeed, a broker charges commissions to the companies he accompanies. They generally represent a percentage of the nominal amount of financing obtained.
However , brokerage fees are only due if you take out a loan with the bank recommended by the broker. It is possible to include its amount in your financing need .