September 25, 2023

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7 Ways to Finance Your Business in Sweden

4 tips to develop a successful business in Sweden - Business Culture

Running a business can be a financial Burden; paying for premises, buying new equipment, paying the staff, remitting tax, paying suppliers, and even opening new branches in other areas.

More often than not you will find business owners in need of financial assistance. This article explores all the ways you can find finances for your Swedish business.

  1. Loans

People with money also want to make money from lending out their money, the concept of loans. Loans are the fastest and easiest way to get finances to run a business.

There are two major types of loans;

  • Business loans 

Business loans are macro financing and they’re often issued by large corporations like banks and financial institutions and the loan amount may be over millions of  Swedish krona.

If you happen to be looking for some business loans you can read some reviews about Swedish financial companies from Reading reviews will help you narrow down the options to the best there is.

  • Private loans

The concept of a private loan is that people with money can lend the same money as a loan to people via an intermediary (that is normally a larger corporation.)

Some companies in Sweden issue corporate loans in form of private loans. However, do not sign up without getting to know other people’s views on them.

Read some reviews about Fellow Finance, a company in Sweden that grants private loans from anywhere between SEK 10000 – 500000.

  • Microloans 

Microloans are also called small business loans and are often limited to a specific type of financing and issued small amounts. For instance, you can seek equipment financing or marketing loans as a microloan. 

Small companies in Sweden can find Microloans from the European investment fund and the Swedish loan market. 

  1. Partnerships

Getting into a partnership with other businesses or people is yet another way to find financing for your company.

In case you’re wondering where to find business partners in Sweden you can check out; the European business directory, the Swedish trade fairs, exhibition arenas in Stockholm, the Swedish Association of agents, or take a worldwide directory. 

  1. Equity investors 

Equity investors are the growth investors. They often invest in a company based on their prediction of whether or not the company can perform well in the market.

To get financing through equity investments you will have to convert your company to, if it is not yet, a limited liability company, and then listed on the Stockholm stock exchange.

With these people will invest their money in form of shares to your company. They will then claim a share percentage of the income in the proportion of investments made.

For instance, if an investor purchases 1% of the shares of your company they will have 1% of the total net of the company. 

  1. Fixed-income investors

Your business can also find financing from fixed-income investors.

These types of investors are also found in the securities market and they are willing to buy bonds and other forms of interest other than gross interest. 

Fixed-income investors will furnish your company with capital and in return, you will have to pay them their original investment amount and the compounded interest. 

Unlike shareholders, fixed-income investors do not get voting rights in your company but their lent money is to be paid in full at the maturity date.

  1. Venture capitalists  

Venture capitalists in Sweden are private individuals or firms that issue out the money in exchange for a stake in a company.

There are different from equity investors in the sense that they don’t normally work with security exchange companies.

What normally determines whether you will get money from a venture capitalist is the idea behind your business and the potential of your business growing.

For instance, a venture capitalist may give you all the money you want and in but in exchange they may need a very huge stake in the company. 

  1. Savings 

Money-saving is a skill that every business needs.

Sometimes the money you can get from loans or investors is not sufficient to run the company.

This is why you need to have saved some money either from your income or other types of businesses you run. 

Revenue collected from a business should not only be channeled back to the business but also saved for future investment.

  1. Family and friends 

Finally, the last possible way to finance a business in Sweden is through contributions from family and friends.

The reliability of this form of finance is not as predictable as other forms of financing but it can go a long way to support your business.

Whether you can get financing from family members will depend on your relationship and how supportive your social structure is.