As Bankera is building a bank for the digital era, we are focused on two major lines of business: payments and lending. These services will be used as proof of concept for the banking business in the future. We started to offer payment services for business and individuals earlier this year. Now, we are excited to announce that the Bankera Business Loans solution is live and we are starting to build our loans portfolio as one more step toward a full-scope banking solution for digital businesses.
During the COVID-19 pandemic, Europe and most of the world experienced a decrease in economic activity. Consequently, a vast number of SMEs were significantly affected and saw a fall in revenue or even had to stop their operations altogether.
The decline or complete stoppage affects not only the enterprise but all the parties related to it as well, including suppliers, wholesalers, and retailers. This indicates that all the links in the supply chain are losing customers as well as valuable partnerships, which can stall the economy at large.
On the other hand, physical restrictions due to COVID-19 made a lot of the businesses look for new ways to secure the revenue and adapt to the situation by expanding or moving their business online. While some have done so successfully, others lack financing to make the transition.
The distress caused by COVID-19 and the shift to digitalization made it a perfect time to offer the market a solution aimed at addressing the financial needs of digital businesses, whether it be payments or financing. With Bankera Business Loans entities looking for business loans for SME can take advantage of our solution for refinancing or invoice financing, to scale their business, or to bear the costs of getting online.
The idea for Bankera Business Loans was first developed and introduced during the EUvsVirus hackathon organized by the European Commission, where it was recognized as the best in the Digital Finance category. Having tested the solution and seeing that it was met with great success, we managed to fully implement and bring it to market only three months later.
How do business loans work at Bankera?
Bankera Business Loans follows the concept of shared responsibility, which means that a company can apply for financing with its partnering institution that is willing to pledge a double-guarantee of the loan. Our loan terms are flexible; hence each of the companies can choose freely how much of the loan they can guarantee. A company getting a business loan at Bankera can also guarantee the loan all on its own without a partnering company.
Loan amount, maturity, repayment schedule and interest rates are all devised to meet the diverse needs of our clients. Loans range from 2,000 to 50,000 EUR. Depending on your goals, you can set a flexible repayment schedule and postpone the repayment of principal for up to 12 months. Additionally, you can determine the time frame of loan maturity starting with a single month and going up to two years.
How to get a business loan?
To be eligible for a loan at Bankera, the client must either represent a company or act as a sole trader. Below we provide a quick step-by-step tutorial on how to get a business loan at Bankera.
Step 1. When getting a business loan, the applicant must have a corporate account at Bankera. If you already own a business account, sign in to the platform. Otherwise, we invite you to sign up and open a business account.
Step 2. Once logged into your account, find and click the “Loans” button in the navigation bar at the top of the page. You will be redirected to the loans application form.
Step 3. Fill out the questionnaire. You will be required to provide general information about yourself, the company you represent, as well as the partnering institution. Additionally, you will be asked to indicate the purpose of the credit, the loan term, amount, as well as the details of how it will be secured.
Step 4. Once you submit the application, we will send you an email notification confirming that we received your request. Follow the instructions in the email to finalize the application.
After we receive the complete application for a loan, we will review and assess it for eligibility. As soon as we are done with that, all parties involved will be informed whether the application has been approved. In a successful case, we will send out a loan offer, which the entities applying for a loan can either opt in or out of.
Finally, the repayment phase is highly adjustable as we offer flexible repayment options so that businesses would be able to plan out their finances and act according to their needs.
At the moment, our business loans services are available for Lithuanian customers only. However, on a case by case basis and depending on their business model companies and freelancers across Europe would be considered for a loan.
Find out more about Bankera Business Loans and get financing for your business today!