Can an SME Take Out a Loan in Its Own Name?

From a legal point of view, an SME is fully entitled to apply for and obtain a loan. Nothing prevents a company from taking the necessary steps to request financing over a short and defined period, for example to compensate for a temporary lack of liquidity. In practice, however, very few banks or traditional credit institutions are prepared to grant this type of loan to SMEs, even when the underlying business is healthy.

The main reason is the financial profile of the SME: fluctuations in turnover, variable margins, seasonal activity and unpaid invoices make income appear unstable. As a result, lenders struggle to obtain a clear, long-term picture of the company’s financial health, which often leads to refusals or offers that are poorly suited to the real needs of the business.

At the same time, the company’s obligations remain: salaries, social security contributions, rent, supplier invoices and taxes must be paid on time. When banks are reluctant, many SMEs are left without the liquidity they need at the very moment when a targeted business loan could protect jobs and secure future growth.

Typical Cash Flow Challenges Faced by SMEs

An SME’s activity can be performing very well in terms of orders and client portfolios, yet still suffer from temporary liquidity shortages. Payment terms on invoices frequently exceed one month and can easily extend up to three months, especially in B2B relationships. During this time, the SME must continue to meet its ongoing expenses without always having the necessary cash at hand.

This delay between outgoing and incoming payments can trigger a chain reaction: increased pressure on supplier relations, postponed investments, difficulties paying salaries on time, or even a risk of defaulting on tax and social obligations. To avoid this spiral, many companies look to short-term business credit to bridge the gap until invoices are paid.

Without appropriate financing, a simple temporary liquidity problem can hinder an otherwise solid company. That is why a flexible and realistic approach to business loans, based on the true potential of the SME and not only on a snapshot of its accounts, is crucial in 2026 for the sustainability of Belgian businesses.

Taking Out a Loan as a Company Director

When it proves difficult or impossible to obtain a loan directly in the company’s name, an alternative route is to request financing as a natural person. In this case, the credit is taken out by the directors or administrators of the company rather than by the legal entity itself.

However, these directors are often not traditional employees. In many Belgian SMEs, they are shareholders and self-employed workers. This status brings specific challenges: variable income, complex tax situations and less predictable cash flows. From the perspective of traditional lenders, this makes the analysis of repayment capacity more complex and can again lead to refusals or restrictive conditions.

A specialised broker will instead focus on a global assessment of your situation: the company’s history and prospects, your assets, your professional experience and your personal financial stability. This more nuanced approach can open the door to a business loan for company directors that is both realistic and sustainable.

What About Credit for Self-Employed Professionals?

Just like an SME, a self-employed person is legally allowed to obtain a loan. Nevertheless, concluding a credit contract remains challenging. Income is often irregular, invoicing can be seasonal, and the financial situation can vary significantly from one quarter to another. This instability makes it harder for many brokers and banks to clearly assess the professional activity and repayment capacity of independents.

Payment terms for their clients’ invoices also generally range between one and three months, which reinforces cash flow tensions. Yet, just like SMEs, independents need to be able to invest, renew equipment, cover VAT and social contributions, and keep their activity running smoothly. A well-structured business loan can therefore be essential to their long-term success.

At CPE, it is possible to apply for a loan as an independent because our team includes a specialist dedicated to self-employed profiles. We understand the realities of independent work in 2026 and analyse your file with criteria adapted to your activity, rather than applying a purely salaried-employee model.