Business Loans 2025: A Complete Guide for Small Business Owners
Financing a business is not just about covering expenses – it is about creating opportunities for growth, investment and stability. That is why corporate loan still one of the most used and available forms of financing for Swedish small businesses in 2025.
But how does a business loan work in practice? What types are there? And how do you choose the best option for your business? This guide goes through everything you need to know.
What is a business loan and how does it work?
A corporate loan is a loan given to a registered company – a limited liability company, a partnership or a sole proprietorship – to finance business-related needs. It may be for:
- Invest in equipment
- Cover running costs
- Hiring staff
- Manage temporary liquidity problems
You repay the loan monthly with interest, and the terms of the agreement vary depending on the lender, risk and loan amount.
The difference from a personal loan? A business loan usually requires company information, a business plan and sometimes a personal guarantee.
Different types of business loans
There are several types of corporate loan, depending on purpose and needs:
- Traditional bank loans: long-term loans with fixed interest rates
- Overdraft: flexible credit up to a certain limit
- Factoring: financing by selling invoices
- Leasing: long-term equipment rental
- Peer-to-peer lending: loans from investors via platforms
Which option is best for you depends on how much you need to borrow, how quickly, and what your financial history is like.
What is required to get a business loan?
To get a corporate loan In 2025 you will typically need:
- Registered company (often at least 6 months old)
- Business accounts and accounting
- Turnover (often at least SEK 250,000/year)
- Any security (e.g. personal guarantee)
Digital loan platforms have made it easier than ever to apply online, and you often get a response within 24 hours.
Tip: always compare interest rates and loan terms – and have a clear plan for how the money will be used.
Advantages and disadvantages of business loans
Advantages:
- Quick access to capital
- Preserves ownership (unlike venture capital)
- Flexible options for different needs
Disadvantages:
- Interest and fees
- Risk of personal liability when providing bail
- Can affect credit rating
A business loan is a tool – not a solution to all problems. Make sure it is part of a long-term plan.
Get help finding the right loan
Not sure where to start? On Finance partner You can compare options and get help finding the business loan that suits your business.
Want to know more about how we can help you? Contact us for a quote and get started with financing today