A business loan is a form of financing provided by banks or financial institutions to companies to support production, business operations or investment. To be approved, a business must meet requirements related to its financial standing, business plan and collateral. Accurate valuation helps increase the loan limit and shorten the approval process.
What is a business loan?
A business loan is a form of capital provided by a bank or financial institution to a company to support production and business activities, investment or cash flow supplementation. Unlike personal loans, this type of loan is approved based on the companys financial capacity, business plan and the value of its collateral.
Business loans are currently a popular form of corporate lending, applied to many types of businesses, including loans for small and medium-sized enterprises, large enterprises and loans for FDI enterprises or foreign companies borrowing capital in Vietnam.
In an increasingly competitive environment, borrowing capital is not just a solution to "rescue cash flow" but can also serve as a growth lever if a business approaches it the right way.
Common types of business loans
Unsecured business loans
No collateral is required; the bank relies on the companys reputation, cash flow and credit history to make its decision. This is suitable for businesses with stable revenue and transparent financial reporting. However, loan limits tend to be lower and interest rates higher.
Secured business loans
Businesses use assets such as real estate, machinery or inventory as collateral for the loan. The advantage is a higher loan limit and better interest rates, but this requires clear asset documentation and accurate valuation.
Credit line loans / working capital loans / project loans
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Credit line loans: a pre-approved capital "room" that businesses can draw on flexibly
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Working capital loans: short-term capital to support operations
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Project loans: financing for medium- to long-term investment plans
Each type suits a different financial goal, but all share a common requirement: proof of capacity and asset value.
Requirements for business loans
To increase the chances of bank approval, a business needs to meet the following basic criteria:
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Have a legal business registration
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Operate stably, with no bad debt
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Have clear, transparent financial statements
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Have a feasible plan for capital use
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Have collateral (for secured loans)
These are the core factors that determine 70–80% of loan approval likelihood.
What documents are needed for a business loan?
A complete loan application file typically includes:
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Business registration license
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Financial statements for the past 2–3 years
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Tax declarations and cash flow statements
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Business plan / capital use plan
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Collateral documentation (land use right certificate, sale contract, ownership documents, etc.)
The key factor is not simply "having enough paperwork," but the soundness and credibility of the file. This is also why many businesses are rejected even after preparing what seems like a complete application.
Current business loan interest rates
Business loan interest rates are not fixed; they depend on the type of loan, industry and risk level. However, at major banks in Vietnam today, the general range is as follows:
Secured loan interest rates (with collateral)
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Range: 6.0 – 9.5%/year
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Applied at banks such as Vietcombank, BIDV and VietinBank
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Some short-term promotional packages may range from 5.5 – 7.5%/year for the first 3–6 months
Characteristics:
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Lower interest rates due to collateral
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Higher loan limits (70 – 80% of asset value)
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Suitable for medium- to long-term borrowing
Unsecured business loan interest rates
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Range: 8.5 – 14%/year
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Common at banks and finance companies
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Heavily dependent on cash flow and business reputation
Characteristics:
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No collateral required
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Faster approval
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Lower loan limits than secured loans
Interest rates by bank group
State-owned banks (Big4):
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Vietcombank: ~6 – 8.5%/year
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BIDV: ~6.5 – 9%/year
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VietinBank: ~6 – 8.8%/year
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Agribank: ~6 – 9%/year
Advantages: low, stable interest rates, easy access for businesses with strong applications
Joint-stock commercial banks:
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Techcombank: ~7 – 10%/year
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MB Bank: ~6.5 – 9.5%/year
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ACB: ~7 – 10.5%/year
Advantages: more flexible documentation requirements, faster approval
Note
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Promotional interest rates typically apply only for the first 3–12 months, after which rates float
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The actual interest rate depends on:
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The value of the collateral
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The valuation results
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The level of financial transparency
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Therefore, the interest rate is not the most important factor. The approval outcome and loan limit are what directly affect a businesss financial planning.
Why are businesses rejected for loans?
Its not uncommon for businesses to submit applications repeatedly and still be rejected. Common causes include:
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Financial statements lacking transparency
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Inability to demonstrate stable cash flow
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An unconvincing business plan
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Collateral that is undervalued or does not meet requirements
Among these, undervalued collateral is a very common "bottleneck" that is often overlooked.
How to effectively increase your business loan approval rate
Standardize financial documentation
Businesses need to ensure their accounting figures are clear, logical and accurately reflect operations. This is the "language" banks use to assess risk.
Build a convincing business plan
A clear capital use plan, with cash flow forecasts and repayment capacity, significantly boosts credibility.
Accurate asset valuation – the deciding factor
This is the "lever" that many businesses overlook.
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If assets are undervalued, the loan limit decreases
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Substandard valuation causes banks to assess higher risk
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Unclear asset documentation prolongs the approval process
Conversely, an accurate, independent valuation report that meets legal standards helps:
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Optimize the value of collateral
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Significantly increase the loan limit
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Shorten approval time
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Enhance the credibility of the application
The role of valuation in business lending
In the loan process, valuation is not just a procedural step — it is an important basis for the banks decision-making.
Specifically, valuation helps:
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Accurately determine the real value of collateral according to market and legal standards
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Serve as an important basis for banks to approve loans and set appropriate limits
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Control and minimize risk for both the bank and the business
For businesses, this is not just a mandatory step but a strategic financial tool:
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Optimize the loan amount based on the actual asset value
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Gain leverage when negotiating interest rates and loan terms
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Avoid situations where undervalued assets reduce access to capital
The more accurate the valuation, the higher the chances of loan approval and the more optimal the loan limit.
The business loan process at banks
The loan process typically involves 4 steps:
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Preparing and submitting the application
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Bank appraisal (financial + asset)
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Loan approval
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Contract signing and disbursement
Among these, the appraisal step is the most important and it is where the valuation report plays a decisive role.
Business valuation for loans – A lever for increasing loan limits & approval rates
Do you need capital to close a deal, manage cash flow or expand your business — but your loan application keeps getting "stuck," the bank keeps asking for more documents, your assets are undervalued and the loan limit isnt enough to move forward? This is a bottleneck many businesses face — not because they lack capability, but because their business value hasnt been properly demonstrated to bank standards.
In reality, banks dont just look at financial statements — they carefully assess the true value of the business and its collateral. If the valuation isnt accurate, you could:
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Have your loan limit significantly reduced compared to your actual potential
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Face a prolonged approval process and miss business opportunities
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Even be rejected despite having a "complete" application
Hoang Quan Appraisal offers in-depth business valuation solutions, turning hidden value into real "weight" in your loan application:
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Accurately determine business value according to legal standards accepted by banks
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Optimize the value of collateral, increasing your actual loan limit
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Boost the credibility of your application, raising your approval rate on the first attempt
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Shorten the approval timeline for faster disbursement and timely opportunities
With over 24 years of experience, Hoang Quan Appraisal is a partner to numerous financial institutions and banks both domestically and internationally, ensuring that its valuation results are widely recognized within the credit system.
This advantage means your application doesnt just "meet the requirements" - it gains a clear competitive edge during loan approval.
Accelerate your business loan with a bank-standard valuation solution
If your business is:
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In urgent need of capital, but your application isnt convincing enough
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Sitting on assets that are being undervalued, resulting in a lower-than-desired loan limit
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Spending too much time supplementing documents without getting disbursed
Youre not short on assets — youre short on a valuation report strong enough to "vouch" for your businesss value to the bank.
A properly conducted valuation report isnt just a formality — its:
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The basis for banks to trust and approve faster
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A tool to help you negotiate better limits and interest rates
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The "ticket" that helps your business access capital at the right time
Hoang Quan Appraisal is committed to:
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Fast, accurate reports that meet legal standards
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Recognition by many major banks
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End-to-end consulting to optimize your business loan application
Contact us today for advice on the right solution to maximize your loan limit, shorten disbursement time and seize business opportunities ahead of your competitors.
Hoang Quan Appraisal Company Limited
Address: Hoang Quan Appraisal System
Phone: 0934.252.707
Email: contact@sunvalue.vn
Facebook: Hoang Quan Appraisal
Website: hqa.com.vn
Frequently asked questions
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Can a newly established business get a loan?
Yes, but it needs to demonstrate a feasible business plan and have solid collateral.
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Can a business get a loan without collateral?
Yes, through an unsecured loan, but the limit will be lower and strong cash flow is required.
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How long does a valuation take?
It depends on the type of asset, but it usually takes 1–3 business days if the documentation is complete.
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Whats the maximum amount for a business loan?
It depends on the asset value and financial capacity and can go up to 70–80% of the collaterals value.
