Business Loans. Lending To Small And Medium-Sized Businesses

Investment is required to open a new business. Many traders will have them in the Bank. They offer a variety of programs for business foundations. The registration procedure is quite long, and you need to collect a lot of paperwork for him. Loans to small and medium-sized businesses are the best option, if not for his investments.

CONDITIONS FOR OBTAINING

Taking out loans in many organizations seems to be. Lending to small and medium-sized businesses is available on the following conditions:

  1. The firm must be legally established that he had all the documents.
  2. Banks need to provide enterprise business plans. In the interview will have to tell us about your business vision.
  3. Credit institutions specialists perform their calculations on the company’s stability, so you need to provide the necessary information, statement forecasts.
  4. Lending to small and medium-sized businesses is providing real estate in the property.
  5. Checked customer loyalty. If the loan is an issue with IP, check the borrower as an individual. Credit history should be positive.
  6. The presence of guarantors and co-borrowers increases the chance of approval of the application for the loan.
  7. Insurance in many banks is considered a mandatory service.

Only under such conditions, it is likely that the application will be approved. Making a favorable decision begins the standard procedure of registration. Learn more about drawing ideas.

TYPES OF CREDIT PRODUCTS

Lending to small and medium businesses is dividing into the following types:

  • I-target;
  • Diversion.

Targeted loans are using for specific purposes, which are prescribing in the contract. For example, for the purchase of building materials. When payment is making to the counterparty, the costs have confirmed by documents. This may include copies of contracts, shipping documents.

Unearmarked credits are an issue for any purpose. Upon receipt of it, come to the duties to pay stable payments and report on the client’s expenses are not necessary. Interest rates on non-target loans are usually higher than the target.

PROGRAMS

Each loan program for small and medium businesses has its registration features. They are available at a bank or with the help of a consultant. Now the program offers the following banks:

  • Sberbank. The product is called “Business Start.” There is the possibility of obtaining a loan without collateral but needs guarantors and the first installment. The rate is 17-18% and the amount of 100 thousand. Rubles to 3 million. The crediting period is 6-36 months.
  • Rosbank. Released at 40 million. Rubles for a maximum of 5 years. The rate is 12-16,5%. You have to pay a one-time commission and provide collateral property of the company.
  • TCB. Institutions offer to provide a variety of programs for business: to build, direct lending, lending, factoring. Rates start at 15%, and the sum is equal to 30 mln. Rubles.
  • “VTB 24”. The Bank offers a revolving loan, the mortgage business, the introduction of working capital. Rates from the 9% range, and the amount of 850 thousand. Rubles. The lending period is equal to 120 months.
  • “Alfa-Bank.” Loans are providing for up to 3 years. The longest is 6 Mill, Rubles are less than 15%. The Bank does not require the provision of collateral. During the consideration of the application, you have to pay 2% of the loan amount.

THE PROCEDURE FOR REGISTRATION OF SAVINGS BANK

First, you need to contact the Bank for crediting SME. A lot of people in our country will have Sberbank. Then you need to register the tax as a PI. It is essential to be familiar with the franchise program, which is a partner of Savings Bank. It is necessary to choose the right franchise. Learn more about line drawing.

In his program, it is necessary to create a business plan: make a marketing plan, specify offices’ location, and resolve outstanding issues. Next, you need to collect credit documentation: passport, taxpayer identification number, certificate of IP business plan. By those applied for. It must prepare furniture (30% for the first payment). Then a favorable decision is made on the contract. Sberbank usually approves the application if the client has chosen a franchise partner.

EMPLOYMENT FUNDS

Many entrepreneurs will have SME fund lending. They act as guarantors for loans for starting a business. An entrepreneur must apply for a bank loan, notifying him of the state’s desire to support the organization.

The Bank then examines the application, getting into account all the aspects. Suppose a favorable decision is making the tripartite agreement. Usually, supervising lending to small, medium businesses takes a small percentage, according to the scheme of work, many banks, but not all.

RECOMMENDATIONS FOR BORROWERS

After the transaction, they should be familiar with the agreement so that more disputes arise. It would help if you asked the experts immediately. If the business is profitable, it is advisable to repay the loan early, as most interest is including in the first month of payments.

Borrowers should consider the nuances of the following:

  1. Loans are provided at a sufficiently high-interest rate. Therefore, if you can do without them, it is better not to draw such cash loans. But if you do, it still does not work, and you should carefully approach the debt processing procedure.
  2. To Bank, the decision was favorable, and it is necessary to create a unique business plan. It is essential, critical, and the means, and as it is to pass, is necessary. From this, it is immediately apparent whether funds are needed and how much revenue is distributing.
  3. Goodwill is the owner of a business, too, plays an important role. Therefore it is necessary to provide accounting records to increase your chances for a loan. All papers must write correctly.
  4. The Bank must submit a business plan, which will spell out all the details of the business organization. If he is hopeful, it is generally the request is approved.

Lending to small and medium-sized businesses is a considerable risk for banks. If the business goes broke, the financial institution may waste money. So it is usually necessary to provide documentation of the existence of assets and guarantors and co-borrowers. Only when full compliance is likely approval of the loan for business development.

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