Individual entrepreneurs and enterprises often encounter a situation where urgently needed finances to avoid delays in payment, arrears and problems with business partners. Short-term lending allows you to quickly solve this problem.
Short-term lending to legal entities is represented in banks by three main products, such as:
- Overdraft is the most popular option. , allowing you to close financial transactions without debts and delinquencies, if there is not enough money in the account. This type of lending is available to clients with a stable financial position and allows enterprises to increase work efficiency. Sberbank offers legal entities “Overdraft with a common limit”, “Individual overdraft”, as well as “Express overdraft”.
- Targeted short-term loan, for example, issued for the purchase of equipment or payment of wages to employees, or replenishment of current assets. The decision to issue such a loan is made quickly enough, the client who has worked well in the bank is treated as loyally as possible, and a large number of certificates and documents will not be required for processing. But if the overdraft does not imply a specific purpose of the amount disbursed, then the funds issued in the form of this special-purpose loan can be spent exclusively on the declared purpose, since banking organizations control this moment.
- The option of short-term credit lines is not so popular, but also used. Sberbank organizes credit lines for legal entities, including for such large customers as Lukoil, Baltic Forwarding Company and others. But more often than not short-term, but renewable credit lines are used, which allow attracting additional financing of current activities at any time.
Benefits and risks of short-term lending
Short-term lending to legal entities allows you to quickly receive the amount that the company urgently needs. With a good credit history, in the absence of debts, obtaining a loan is simplified as much as possible.
By issuing a short-term loan, the bank takes some risk, which is offset by high lending rates. The limit of such a loan will not be high.
Overdraft as a banking product is most popular among Sberbank customers, but bank specialists can offer various solutions to the problem of a lack of financial resources. A loan repaid by funds received into the account at an interest rate that is reviewed every month becomes a convenient opportunity not to transfer payment of financial obligations, even if there is currently no money in the account.