Företagslån – När är det rätt och när är det fel?

The entrepreneurial spirit has traditionally been very high in Sweden. But it is inevitable that situations arise when you need to decide whether external financing is right. We have taken a closer look at the conditions under which a business loan is a good idea, and when you should avoid it at all costs.

In Sweden, the entrepreneurial climate is in many ways very good. With a well-functioning system for social benefits, opportunities for deductions and reductions and, on the whole, favorable conditions for own operations, the number of both small and large companies has increased. But something that all entrepreneurs sooner or later will have to decide is whether external capital injection is a good idea. Here are some tips on when it is good or not good to consider business loans.

Right time: Expansion and liquidity addition

It is of course no secret that a business loan gives you access to money. But what determines whether it is the right time for a loan is often what you choose to use the money for. In many cases, it is a perfect opportunity to take the chance to expand operations or purchase materials that in the long run contribute to increased efficiency or greater turnover.

  • Expansion of the company leading to greater future profit.
  • Purchase of materials or fixtures that in the long run leads to increased turnover.
  • Use a more favorable loan to pay off costly small loans.

In order for the loan to be beneficial, however, it is important to be careful in having a clear plan with what to use the money for. As a rule of thumb, you can therefore say that a good business loan is planned in advance with earmarked money for a certain purpose.

Wrong time: Spontaneous and unplanned loans

Although it may be tempting to use loans as a quick solution to any financial or material problem, it is a very risky approach. A good loan will always contribute to increased future profit and turnover, while a bad loan risks becoming an obstacle to the company’s success. Because in many cases, poorly thought out loans lead to either postponing an existing problem, or worsening an existing problematic financial situation.

  • Spontaneous loans for unplanned purchases.
  • As an all-in-one solution for every financial setback.
  • As a way to ensure profit when there is no financial basis.

Therefore, make sure to be careful to calmly think about what you actually have in mind to use the money for. If you do not have a clear answer, you are definitely in the risk zone for an unplanned loan. And then in many cases it is better to wait and instead consider alternative solutions.

Does this always apply?

These scenarios are obviously not set in stone. In most cases, it is the individual circumstances of each individual company that will ultimately determine whether it is the right time for a loan. While it’s always a good idea to err on the side of caution by carefully considering the purpose of a loan, there are definitely many situations where loans can be beneficial without it being completely obvious.