During work, a small business owner may need a loan for merchants to deal with some liquidity difficulties for possible reasons of bankruptcy or because, for example, they claim unclaimed credits. If a customer does not make a payment regularly, it could in fact cause complications to the supplier, forcing him to postpone some payments (for example taxes, payment for suppliers, payment of salaries, etc.).
To allow the entrepreneur to cope with these difficulties, some credit products are born, such as for example the loan for merchants offered by various banking institutions.
In general, the simplest solution is to ask for help from credit institutions which have the possibility of granting a loan up to the amount established at the time of signing the contract (as foreseen by the credit agreement). The maximum amount to request the credit line is variable in relation to the income guarantees presented by the customer (therefore the credit level will tend to increase if the customer offers high return guarantees).
Business loan for traders: Mutual liquidity
A loan that provides for the disbursement of a specific amount without a destination restriction: the merchant can therefore allocate the sum for the purpose he wants. This type of loan is generally granted only to subjects who have a VAT number , as the main purpose is to make investments for commercial activities.
The interest rates for liquidity mortgages are generally increased compared to the rates normally applied taking into account that the amount paid does not have a specific purpose (in fact the rate applied is generally 0.20 – 0.30 per cent more) .
Terms: Business Loans
Terms of loan for merchants proposes, a loan that can be granted to sole proprietorships up to a maximum of 30 thousand euros . The loan is proposed as a loan to improve business activity such as:
- Installation of heating and air conditioning systems;
- Ordinary maintenance of the room used for the activity (painting, renovation, restoration of the premises);
- Purchase of goods or services to be allocated to the activity (for example purchase of instrumental goods from suppliers, etc.).
The prerequisites for accessing the loan are those that have requested VAT as a sole proprietorship, to carry out a commercial activity and to hold an account with the Italian post office.
The documentation that generally must be presented at one of the post offices is as follows:
- Tax return form with transmission receipt to the Revenue Agency;
- Identity card and health card valid;
- Passport or other document certifying identity if non-EU citizen;
- Chamber of commerce survey;
- Certificate of registration in the business register.
Other loan proposals for merchants
Besides Italian post offices, other credit institutions also offer traders the possibility of obtaining a loan amount. A loan of at least 10 thousand euros to be repaid in a period ranging from 3 to 36 months which allows a minimum capital of 10 thousand euros to be obtained in a period that it goes from 3 to 60 months.