Business financial support programs in Cyprus
There is not always enough money to start a business in Cyprus. In Cyprus, it is enough to develop small and medium enterprises, the state provides loans for their activities, and thus strengthens its financial system.
Many banks provide favorable conditions for lending, and the procedure for obtaining a loan is not complicated. Therefore, getting a loan for a business in Cyprus is a good option for your business, if you do not currently have the opportunity to provide it in full, but need additional financing.
In which cases can you get a business loan in Cyprus?
There are the following options for getting a loan to start a business:
- The US Small Business Microloan Program, which is favorable because it offers loans of up to $ 50,000 for small businesses that want to start a business or expand one that already exists.
SBA microloans are managed by non-profit lenders of the community, and are generally easier to apply for than larger loans. Disadvantage: financing may not be enough for all borrowers.
The flagship loan program SBA 7 (a) also offers financing that can be used by borrowers to start a business. But SBA 7 (a) loans are harder to obtain. Loans are usually issued to established enterprises that can provide collateral in the form of physical assets, such as real estate or equipment, which the lender may sell in the event of default. Qualifications are rigorous, and even if you meet the requirements, applying for an SBA loan can take several months.
- Take a microloan
- Loans for personal business
New small business owners can also access financing through personal business loans, such as those offered by online lenders. Personal loans are based on your personal credit history, making them a competitive option if your startup is too new to qualify for other business loans.
Consumer loans can have high interest rates (up to 36%), especially for borrowers with a bad credit history. This means that this type of loan for a startup is best suited for borrowers with excellent personal credit and high income.
- Small business grants from private foundations and government agencies are another way to raise start-up funds for your small business. These are not loans that can make it difficult to obtain them. But free capital can cost a lot of work for some new businesses.
- Friends and family
- Credit Cards – Many entrepreneurs rely on business credit cards for startups as financing. You can use this option as short-term financing for business purchases that you can pay off quickly. Allow your balance to linger and interest payments will accrue, quickly turning your credit card into an expensive small business loan.
- Annual interest rates on your business credit card are mainly based on your personal credit ratings. If you have bad personal credit, you will have a higher interest rate.
What documents are required to obtain a business loan in Cyprus?
In this case, a non-resident of Cyprus, so you should submit the following documents:
- A copy of a valid identity card / passport, other identity document, such a copy must be certified by the relevant government agency – as a valid copy
- A document confirming the relevant right to stay in Cyprus (for example, a copy of your temporary residence and stay permit in Cyprus)
If you want to take a loan for a legal entity, you must submit the following documents:
- Financial reports
- Tax returns
- Income and loss statements
- Details of the corporate account
However, depending on the bank in which you will take a loan, as well as depending on the purpose of such lending and whether it will be a traditional bank or online, the documents may differ.
Which banks can I apply for a business loan in Cyprus?
- Live Oak Bank.
- Wells Fargo.
- Capital One.
- Bank of America.
What loans can be provided?
- Term loan
- Loans for equipment
- Long-term real estate loans
Assistance in obtaining a loan for:
- Buying real estate (house, apartment, other buildings) on the secondary market
- Purchase of land for construction
- Purchase of equipment for business
- Investment projects
Often when preparing documents and submitting them to the bank there may be some difficulties, so you need to contact a professional who will help prepare all the documents, prepare applications, select possible grants to receive money and help resolve other issues that may arise when obtaining a loan.
Our services are priced from 200 euros per consultation and subsequent support.