The microlending market plays a big role in the economy of Sweden. There are many financial institutions out there providing loans to individuals and small businesses in Sweden, usually with good and competitive rates.
An ordinary client needs to evaluate a variety of different cards and small and microloan providers before making a call on how to fund their business. Cards offer a variety of different benefits and cashback options and those can add up and create a better service.
Complex Market
The market for microloans in Sweden is complex and offers a wide range of services. Some cards are simple such as an ordinary credit card, others provide numerous additional services and are in cooperation with companies that provide cashback incentives. Sites such as Paydaysverige offer a brief overview of different options out there and allow the users to make their call.
Studying and comparing these cards can provide you with a better understanding of the market and once you know which kind of service you’re looking for, you’ll be able to choose the best card for you.
Small Businesses
Small businesses are the key part of the Swedish economy and that’s why microloans play such a big role in the financial market. About 99 % of all businesses in Sweden are small businesses and most of the economy is driven by a large middle class. That’s why credit card reviews such as Klara Lan can help you choose a card to finance your immediate business expense.
This isn’t an accident, in fact, it’s by design created by the government. The goal was for Sweden to be a country with little class difference and with the government covering parts of the business sector that would otherwise generate a class of the ultra-wealthy.
Cashbacks and Benefits
Many of the cards you can find on Everyday+ offer a variety of other services and benefits that go beyond just borrowing. Those come in the form of special rates when buying from certain businesses and that can add up if those are the companies your small business will often work with.
Some also offer cashback that you can use to get a portion of your loan back as long as you pay your dues on time and stick to the schedule you’ve agreed on.
New Law on Using Cash
Sweden is having an experiment with going cashless and using only digital payment methods. It has gone relatively well but there have been a few changes in the law recently. It’s still allowed to use cash in accordance with these changes and that’s a setback from the original plan.
This still doesn’t mean that the government is giving up on the idea of a cashless society in Sweden, but it will take more time to achieve that goal than it was planned. This also means that small loans can be taken in cash form.
Low-interest Rates
Interest rates are rather low in Sweden and taking on a loan can be a good idea to fund a variety of business activities if you have a good cash flow and a business plan that you can rally on. The government is encouraging taking on loans and funding business development and spending.
That’s the case starting from the time of the global financial crisis and it was the measure that has helped the economy recover. When it comes to using government bonds the rate is set at zero meaning that it’s free to borrow from the government.
Insurance Policies
Borrowing money in Sweden usually requires you to take on an insurance policy in case something happens and you’re unable to repay the loan. This is mostly the case with loans worth more than a certain amount, such as mortgage loans and businesses loans for rather large amounts.
This policy doesn’t really affect those who are taking on micro-loans since it doesn’t apply to such small amounts. There may be some cases when you need to have an insurance policy for a small loan if it has a long repayment period, but that applies to a small number of loans.
Education and Lending
Sweden has one of the best education systems in the world and it’s open to foreign students as long as they cover their own costs. That’s why so many foreigners are applying to Swedish universities and taking advantage of the opportunity.
This has led to an increase in lending for these purposes. The students are using this option to cover the tuition and related costs.
The Shape of Things to Come
It’s not easy to predict how the microloan market will develop in Sweden in the years to come. At this point, it seems like things are going steady and the trends we can observe now will continue for the next couple of years. This is true even with all the changes that covid has brought to the market.
The economy is recovering rather quickly since the vaccination rate is high and things are returning to normal even though they are not yet what they were. This will affect the microloan market which will recover as well, and probably faster than anyone has planned.