Borrow between 5,000 and 50,000 USD?
You are more creditworthy than you think. The average man with a regular income is easily able to take out a loan up to an amount of 50,000 USD.
There are many reasons why people would want to borrow an amount of, for example, 50,000 USD. It often concerns the purchase of a car, caravan or a boat. You may have saved a little and see the boat of your dreams for sale, but when you inquire it turns out to be more expensive than you can actually pay in cash. In such a case, a loan naturally offers a solution.
Despite the credit crisis that we hear a lot about in the media, banks are still willing to lend people money. Not surprisingly, of course, borrowing money is the core business of a bank. Banks would get into trouble if they stopped lending. Although amounts of 50,000 USD are often borrowed by small companies as business credit, it also often happens that private individuals can borrow amounts of a few tens of thousands of USD.
If you intend to borrow an amount such as 50,000 USD, it is advisable to shop around considerably before you make a choice where you want to borrow this money. A small difference in interest makes an amount of 50,000 USD, of course, a big difference. Because borrowing money naturally costs money and why would you want to be a thief of your own wallet?
Most online loan websites have a test where you can simply see if you are eligible to borrow the desired loan amount by entering your data and the amount you wish to borrow.
Do you want to borrow 50,000 USD? Do not think that you are not eligible, because you are more creditworthy than you think. With a regular income you will soon be eligible for amounts of this amount.
Private loans to children and family are attractive
You can of course go to the bank for a loan, but borrowing from family members might also be an attractive option. There are benefits to be gained for both the borrower and the lender.
When you want to take out a loan for the purchase of a car, a renovation of your house or perhaps for a business investment, it is not always necessary to do this through the official way at a bank. In case you have family members who are ‘well-off’ it can be an attractive option for both of you to agree a loan.
Some possible benefits at a glance:
For those who borrow money, it may be possible to mediate an interest-free loan with the family. This naturally saves a lot of money that you can invest in somewhere else.
Of course, the interest-free lending of money only has purely emotional benefits for the lender. You help a family member with it and you can see how your loan can reach its goal thanks to your loan.
For the lender, it can be a good and safe investment when interest is requested. Because it is a private loan within the family, you can agree on other interest rates or even agree that the repayments are interest-free, but that after receiving the loan amount you will receive a bonus. Your money does not stand still this way, and no investment risks are taken with it.
There are also tax breaks. You do not have to pay tax on an interest-free loan if this loan has been prepared on the condition that it is immediately payable. Otherwise the loan is not seen as a loan but as a gift. It is of course also possible to book the interest as a gift instead of the loan. This saves considerably when the Tax Authorities try to get a hold of the loan to your family.
Because it is a private loan, it does not mean that you cannot put the loan on paper. It is of course advisable to always do this. This keeps the agreements clear and even in the event of the lender’s death, it makes handling the estate a lot easier for the heir who can then take over the loan. In addition, the conditions under which the loan was drawn up to the Tax Authorities are much clearer. It is best to both visit the notary to write down the loan.
Thanks to a government subsidy, a business loan of 85,000 USD
A business loan of 85,000 for entrepreneurs is absolutely possible thanks to subsidies. Various subsidies from the government are available to help you. There are various options depending on the category in which the SME company is located. Despite the economic situation, a subsidy for starters is certainly possible.
The UWV offers financial support for anyone who wants to set up an SME but is in danger of losing his job. You can receive an interest-bearing loan for the start-up of your business up to a maximum of around 30000 USD. You make agreements with your UWV work coach about your business plan and you report on progress every month.
The interesting thing is that the UWV not only grants subsidies to highly skilled starters, but also to typical crafts; for example, self-employed plasterer, starting your own shop, hairdresser, etc. What the interest rate for this loan is is not clear, but it will probably be lower than at the bank.
If you have already started as a starter, you can also apply for microcredit.
Innovation credit is also offered for NL Agency (part of the Ministry of Economic Affairs). The bottom line is that you can apply for a tax reduction on the one hand and you can apply for a subsidy to finance parts of the development of new technologies / products.
The WBSO scheme is a tax scheme to stimulate innovation (R&D). The bottom line is that the entrepreneur can get a considerable discount on the payroll tax that normally has to be paid above the wage costs of staff.
With the help of an innovation voucher (another subsidy instrument) you can have something researched by a knowledge institution and receive a subsidy for it. You can not only apply for a subsidy for pure research, but also for market research, innovation strategy and more of the business aspects of innovation.
Existing companies may also apply for microcredit.
An existing company can also apply for the SME Growth Facility instrument. The government guarantees a maximum of 50% of the risk capital (a maximum of 25 million USD), which an entrepreneur puts into the development of new technologies.
The innovation credit is also available for established SMEs. This is a risk-bearing credit for financing innovative projects. The credit is a maximum of 5 million USD.
In conclusion, it can be said that borrowing 85,000 USD through various subsidy pots is indeed possible. As a starting company, you can borrow around 70000 USD through the UWV and Microcredit.
You can also try the remaining 30,000 USD as a personal loan or revolving credit while you are still on loan with your bank. If you are a little further with your company, you can apply for innovation credits and apply for the SME Growth Facility instrument, which realizes a discount on your costs and risk.