Opening a new business requires financial investment. Many entrepreneurs turn to banks for this. They offer various programs to set up their business. The registration procedure is quite lengthy, and for it you need to collect a lot of papers. Small and medium business loans will be the best choice if you do not have your financial investments.
Terms of receipt
Making loans in many organizations is similar. Lending to small and medium-sized businesses is provided on the following conditions:
- The company must be legally registered so that it has all the documents.
- The banks require a business plan for the enterprise. At the interview you will have to tell about your vision of business development.
- Specialists of credit institutions perform their calculations on the stability of the company, so you need to provide the necessary information, reports, forecasts.
- Lending to small and medium-sized businesses is provided with the presence of property in the property.
- Validity of the client is checked. If the loan is issued at the IP, the borrower is checked as an individual. Credit history must be positive.
- The presence of guarantors and co-borrowers increases the chance of approving an application for a loan.
- Insurance at many banks is considered a compulsory service.
Only under such conditions is it possible to approve the application. When a positive decision is made, the standard processing procedure begins.
Types of Credit Products
Lending to small and medium-sized businesses is divided into the following types:
Target loans are applied for specific purposes, which are prescribed in the contract. For example, to purchase building materials. When the payment to the counterparty is completed, the expenses are confirmed using documents. These may be copies of contracts, shipping documents.
Inappropriate loans are issued for any purpose. After receiving them, the obligation appears to be a stable payment of payments, and the client does not need to report on expenses. Rates on non-targeted loans are usually higher in comparison with target loans .
Programs
Each lending program for small and medium-sized businesses has its own design features. They can be found at a bank branch or with the help of a consultant. Now the programs of the following banks are offered:
- Sberbank The product has the name "Business Start". It is possible to obtain loans without collateral, but we need guarantors and a down payment. The rate is 17-18%, and the amount from 100 thousand rubles to 3 million. The lending period is 6-36 months.
- Rosbank. Up to 40 million rubles are issued for a maximum of 5 years. The rate is 12-16.5%. It is necessary to pay a one-time commission and provide the property of the company as collateral.
- Transcapitalbank. The institution offers to draw up various programs for business: for development, targeted lending, leasing, factoring. Rates start at 15%, and the amount is up to 30 million rubles.
- "VTB 24". The Bank offers a working loan, business mortgage, working capital. Rates range from 9%, and the amount from 850 thousand rubles. The loan period is up to 120 months.
- "Alfa Bank". Loans are issued up to 3 years. The maximum is 6 million rubles at 15%. The bank does not require collateral. For consideration of the application you need to pay 2% of the cost of the loan.
Registration procedure at Sberbank
First you need to contact the bank lending to small, medium-sized businesses. Many people in our country turn to Sberbank. Then you need to register in the tax as an individual entrepreneur. It is important to familiarize yourself with franchise programs that are partners of Sberbank. You need to choose the right franchise.
According to your program, you need to create a business plan: draw up a marketing plan, determine a place for the office and solve other issues. Then, documentation is required to obtain a loan: passport, TIN, certificate of individual entrepreneur, business plan. An application is submitted with them. Funds should be prepared (30% for the first payment). After a positive decision, a contract is drawn up. Sberbank usually approves applications if the client has chosen a franchise partner.
Funds work
Many entrepreneurs apply to the lending fund of small, medium-sized businesses. They act as guarantors for obtaining loans to open their own business. An entrepreneur must apply for a loan from a bank, notifying him of the desire to support a state organization.
Then the bank considers the application, taking into account all the details. With a positive decision, a tripartite contract is drawn up. Often, a small percentage is taken to facilitate lending to small and medium-sized businesses. Many banks work under such a scheme, but not all.
Recommendations for borrowers
When concluding a transaction, you should familiarize yourself with the contract so that no further disputes arise. You need to immediately ask questions to a specialist. If the business is profitable, it is advisable to pay the loan ahead of schedule, since most of the interest is included in the first months of payments.
Borrowers should consider the following nuances:
- Such loans are issued at sufficiently high interest rates. Therefore, if there is an opportunity to do without them, it is better not to arrange such cash loans. But if this still does not work out, then you should carefully approach the procedure for obtaining a loan.
- For the bank’s decision to be positive, you need to create a unique business plan. It will immediately be clear from it whether funds are needed and how profits will be distributed.
- The business reputation of the owner of a business also plays an important role. Therefore, it is necessary to provide accounting documentation to increase the chances of obtaining a loan. All papers must be composed correctly.
- The bank must provide a business plan in which all the subtleties of organizing a business will be spelled out. If it is prospective, then usually the application is approved.
Lending to small and medium-sized businesses is a big risk for banks. If a company goes bankrupt, a financial institution may lose funds. Therefore, it is usually required to provide documentation on the availability of property, as well as guarantors, co-borrowers. Only with full compliance with the requirements is it possible to approve a loan for business development.