Business loan

Business loan

Reading time: 1.30 min.

Why did we launch the business loan?

The financial crisis from a decade ago created a situation where the traditional business loan became unavailable to most companies. This is also one of the reasons behind the emergence of the crowdfunding market. Even though the global loan volumes have not decreased overall, most loans are issued to larger corporations and SME’s have to find alternative sources of funding.

„During my 20-year experience in banking I have met so many companies that are not satisfied with the funding options provided by their local banks. This is why I decided to establish Crowdestate crowdfunding platform – to be a professional funding partner to real estate developers“ explains Loit Linnupõld, the CEO of Crowdestate. „Starting from 2016 companies can also apply for business loans and in 2017 we launched the mortgage backed small business loan.“

Crowdestate crowdfunding platform is an alternative to traditional banking, connecting thousands of investors with companies in need of funding. Today there are several funding options for businesses available on our platform:

  • Business loans;
  • Mortgage secured business loans;
  • Mezzanine capital
  • Equity

Why apply for a business loan?

Achieving a sustainable business growth might mean a need for additional working capital. Lack of capital combined with long payment deadlines from customers can severely inhibit a company’s growth. When you cannot enter a new market, carry out a high potential project or launch new product lines, you might be in trouble. A mortgage secured business loan is a convenient way to find that additional funding you might need. Great projects can even be funded in a matter of days on Crowdestate.

A crowdfunded business loan is characterized by:

  • Convenient and fast to apply for – just fill the application on our website and we will give you an indicative offer within a working day
  • Loans starting from 20 000 euros
  • Loan term of up to 5 years
  • 1st lien mortgage set on the asset
  • Suitable collateral is: residential- or commercial buildings, apartment, land plot
  • Collateral asset does not have to be owned by the applicant
  • Interest auction to minimize the interest rate of the loan

Funding your projects on Crowdestate platform is easy. Start with filling an online application or send us an e-mail. Our extensive experience with crowdfunding projects enables us assess the project and give feedback if needed. Expert information on our website will make sure investor’s have an easy time with making their investment decision.

Today Estonian and Latvian companies may apply for business loans, however, in the future we hope to make this service available for other European companies as well.

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