Business Loans & Financing

In the start-up and development phase, many companies need to know what conditions they must meet to receive a loan or credit. When granting a loan, banks are primarily interested in two things: (1) the ability to service the company's debt and (2) adequate security in the event that the company does not service its debt. In addition, the bank needs to know as much as possible about the project or purpose for which the loan is needed.

✓ Hold a Norwegian business bank account. ✓ A Norwegian-registered Foreign Enterprise (NUF), Sole Proprietorship or Private Limited Liability Company (AS) must be registered with the Norwegian business authority, The Brønnøysund Register Centre (Brønnøysundregistrene) and hold a valid business registration number (Organisasjonsnummer). Foreign Enterprise might have a harder time getting a business loan in Norway as these companies already are established abroad. ✓ Most loan companies require the business owner to reside in Norway. ✓ Most corporate loans require personal bail.

In order to obtain a loan, the bank must feel confident that it will be repaid. A company’s payment ability ( debt servicing capacity), is dependent on the amount of cash, or easily accessible funds, it has at its disposal. The bank will therefore ask about the company’s current liquidity position, as well as about its cash flow prospects.

In periods of tight liquidity, there are various solutions to improve your cash flow. Your bank can offer cash flow advice for your company and has the necessary tools to help you. The bank assesses all loan applications individually. Therefore, it is important to have a good business plan which includes a budget and a description of who will do what, where and why.