The Swedish business lending market has been booming for years. There has been a slight issue with the market due to the Covid related problems but there’s still a growing middle class in Sweden looking for a way to open new businesses and find finance for them.
Taking out loans and credit cards is rather easy in Sweden and the interest rates aren’t that high meaning that with a good business plan, you can get a good head start for your business.
What Kind of Credit Cards Are Out there?
There are numerous different financial services in Sweden and finding the right one to suit the needs of your loan is not always an easy task. That’s why sites such as Foretagslan Finance can help since they offer a good overview of different banks, cards, and the features they are offering.
Comparing different options can mean a lot to a small business looking for ways to get its chance at the market. Those small differences between the card providers can add up and mean a lot in the long run.
Small Businesses Make the Economy Run
Small businesses play a big role in the Swedish economy. As much as 99 % of all business in Sweden. That means that choosing between cards showcased on Zmarta Företagslån can mean a lot when a business of that size is just getting started.
For businesses of that size, employees will be the biggest expense in the long run. However, small business loans are rarely taken in order to finance these costs. Instead, cards are usually used to cover the costs of equipment or venues needed to run a business.
Lending to a Small Business
Since a small business is the only type of business that exists in Sweden, the lending market needed to adapt to that fact. Credit card companies offer a variety of different services as can be seen in the reviews on Froda Företagslån, but the overall market is pretty much adjusted to the needs of a small business.
The debt that’s taken out by small companies has been steadily increasing in the past ten years. The same can be said for large companies, but the speed at which the new loans are taken on isn’t that high. That means that small businesses in Sweden are thriving.
The Conditions
There’s been a negative repo rate in Sweden for the past couple of years. That means that the government is using the central bank to encourage citizens and businesses in Sweden to borrow more money and plan their finances for the long run. This has been the state of affairs since the financial crisis of 2008.
The GDP of Sweden shrunk during the crisis and it’s been recovering each year since. The country fully recovered from the crisis in 2015 and it’s been on a steady growth streak ever since. Borrowing money is therefore rather easy in Sweden.
More Loans Taken Every Year
The government-owned survey company audits the banks in Sweden every year. It’s their index that best proves how many loans are taken out every year. The research shows that there are more loans taken each year than the year before. It shows that there’s a need for more funds in the market. A growing middle class appears to be confident in its ability to repay the loans it takes on.
Swedish GDP is on the rise each year and the economy is doing well, which is the best overall business environment for both the lenders and small businesses that use their service. It seems that this is a long term trend that will continue in the years to come. However, changes in the global market end up impacting everyone and the same thing can happen to Swedish microloans.
Other Sources of Financing
Not all small businesses use cards to finance their business ventures. There are some that use alternative methods and in many cases, these can be successful as well. For the most part, that’s done by using the services of investors.
It’s especially popular in the tech and software industry where there’s a quick and high return and investors can easily get the money they’ve invested back. This type of funding is on the rise as well, but it’s a small portion of the pie. The creative industry also makes use of patronage and other similar online services that allow you to support your favorite creators directly. It’s an even smaller pool.
Governmental Response
The government is also doing its part to finance innovative small businesses that create new jobs. Such policies have been in place since 2016. The government has created a venture capital company to fund small businesses that have a chance of becoming the next big thing and therefore improve the Swedish industry in general.
The investments are targeting particular sectors as is the case in most other countries. Instead, they are finding the companies that are deserving of help and financing. The goal of such policies is to supplement the market in its efforts of finding new companies. It’s played a big role in the overall boom of the Swedish economy.