Financial-banking education is a necessity for everyone, regardless of whether you use banking tools or services, or how many sources of income you have. By understanding the mechanisms behind potential income growth, you will be able to manage your resources correctly and maintain a balanced ratio between income and expenses.
Moreover, if you are an entrepreneur with a business registered as an LLC, sole proprietorship, or individual enterprise, you have most likely needed to open an active account with one of the banks in Romania.
However, if you have faced moments when additional capital was needed to manage your business—such as production costs, supplier payments, or salaries—and you couldn’t cover this gap through a bank, it’s important to be aware of all alternative financing and lending options available to you.
That’s why we provide a small guide with everything you need to know about loans and financing, so you can properly manage your personal accounts or your company’s working capital.
Contents
Types of institutions that can provide loans
Loans offered by non-banking financial institutions
Who can apply for financing from non-banking institutions
Possible uses of a small or medium enterprise (SME) loan
How to choose the most advantageous non-banking loan
How to choose the right business loan provider
Types of institutions that can provide loans
Banks or entities authorized to operate as lending institutions under the authority of the National Bank of Romania (BNR) can provide you with a loan in various forms, whether you are an individual or a business, depending on your current spending or development needs. Other entities that can operate in compliance with specific legal requirements are non-banking financial institutions.
Accessing a bank loan
As an individual, you can request a loan from the bank where you have an account. Loans can take various forms:
- Loans for purchasing a home: mortgage, real estate, or “First Home” programs
- Consumer loans or personal credit facilities: these can take the form of a credit card or overdraft.
These loans can be:
- Designated for specific purposes (studies, housing, etc.) with guarantees or collateral
- Non-designated, which don’t require proof of purpose or real guarantees and are based on the applicant’s monthly income
Depending on the type of expenses or repayment period, these loans can be issued as a credit card or personal loan, with or without a mortgage.
Before applying for a bank loan, analyze why you need it to determine which financial product is most suitable.
For example, to compare costs, consider the Annual Percentage Rate (APR), which reflects the total cost of the loan, including interest and fees (administration and credit analysis). Even a difference of 0.1% in APR over a 30-year term can increase your repayment by 3,000 RON!
Loans offered by non-banking financial institutions
If you are an entrepreneur seeking financing but do not meet the bank’s lending criteria, you can apply for a loan from a non-banking financial institution. These loans are offered for various sectors—from agriculture to commerce or e-commerce—and cover the needs of SMEs or service providers with independent professions.
In addition, non-banking institutions often provide specialized consultancy to help the business choose the best financing option.
Who can apply for financing from non-banking institutions
Any SME—LLC, joint-stock company, sole proprietorship, family business—or service provider with a liberal profession or office can access SME loans to support their operations. These loans help businesses expand their services or increase product volumes.
Possible uses of an SME loan
With an investment loan, you can grow your business and quickly acquire the equipment you need at a reasonable price. Loan funds can be used for:
- Paying taxes or refinancing
- Paying for services
- Stock or inventory
- Investments (movable or immovable assets, vehicles, IT), equipment, or workspaces
- Mixed purposes (working capital plus investments)
Depending on your business profile, you can opt for mixed-use loans, as there is flexibility in choosing how the funds are allocated.
How to choose the most advantageous non-banking loan
Depending on your intended purpose, you can choose a business loan, agricultural loan, e-commerce loan, or anti-crisis loan. Loan amounts range from 2,000 to 700,000 RON with minimal documentation required. Options include:
- loans for working capital needed for daily operations;
- investment loans.
Credit applications are analyzed quickly, with responses either immediately or within two days depending on the amount requested. Additional advantages:
- flexible repayment schedule and grace period;
- transparent and flexible application review;
- no down payment required.
Make sure you choose the loan that best meets your business needs and offers a repayment period that suits you. A grace period in the contract is also important for the financing to be advantageous.
Another key factor is the zero down payment, which not all non-banking financial institutions provide, so familiarize yourself with this before selecting the loan.
How to choose the right business loan provider
Even though there are many options for non-banking lenders, the conditions and criteria for granting loans can vary greatly. Choosing the right provider is crucial for your development plan.
Firstly, rely on the support of a reputable financial institution with a clear track record. For example, Mikro Kapital, a member of the European Microfinance Network NGO, has proven results in positively impacting the SME market for at least four years. You can also gather information independently or seek recommendations from business collaborators to find a trusted non-banking financial institution.
Loan repayment
Whether you need an SME loan for daily operations or an investment loan, you benefit from favorable repayment terms. Depending on the lending institution, repayment periods can range from 60 to 180 months, with a grace period of up to 12 months, allowing for easy amortization of your investment.
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