Economic development is directly dependent on business development. And for its constant development, many enterprises lack their own funds. For this purpose, banking organizations offer to use the services of lending to legal entities. And already with the help of borrowed funds it will be possible to arrange the purchase of equipment, the acquisition of real estate and so on.
Features of obtaining
It is clear that the conditions for lending to legal entities are endowed with their own characteristics. And the procedure for providing this service is strictly regulated. Therefore, if the company has a need for money, then to receive it you will need to fulfill a number of requirements.
Each financial institution has its own lending rules, which may have significant differences from the features of the provision of such a service in another bank. Therefore, the initial step that must be taken is to choose a bank for lending to legal entities with suitable conditions. Having selected the conditions favorable for your enterprise, you can begin to collect the necessary package of documents.
Important Terms
First of all, the banking organization checks the future borrower for a credit history, which for known reasons should be positive. It is clear that not a single bank would take the risk of giving a large loan to a person who, according to the terms of the previous agreement, had serious delays in payments, or was not repaid at all. For this purpose, an assessment of the financial condition of the enterprise is carried out on the basis of the presented accounting and financial statements, a bank statement showing all types of transactions that have taken place in the account for a certain period.
There are frequent cases when, in order to offer the most suitable option for lending to legal entities, a banking organization requires a borrower to switch to its servicing. Therefore, most often, applying to your bank for credit funds becomes the most optimal offer.
Bank lending to legal entities requires compliance with the following standard conditions:
- The offer of many banks for those with a current account is the opportunity to take advantage of a short-term overdraft loan. Such a proposal involves regular replenishment of the account with borrowed funds allocated by the borrower for different purposes. Payment on this loan will be debited from the account of the enterprise upon receipt of funds automatically.
- Making a credit line - is considered the optimal loan product. For each enterprise, individual conditions are selected, so they should be discussed separately with a specialist in the credit department.
Banking organizations express their loyalty to regular customers, as they are well aware of their financial reputation and business characteristics. Banks offer some enterprises to take advantage of targeted programs, under the terms of which borrowed funds can be used to purchase equipment, purchase expensive items, which most often act as collateral.
Also recently, a program of refinancing loans opened with other banks has begun to develop successfully. Approval will be guaranteed in case of timely payment of funds for a long time. In other words, having a set of all the necessary conditions suitable for the established banking rules, you can go through the lending process for individuals and legal entities.
Advantages and disadvantages
The indisputable advantage of lending to legal entities is:
- The ability of a legal entity to receive a really large amount of money and direct it to business development.
- As a client of the bank in which you apply for a loan, you can reduce the time for processing documents.
- Investment loans can be used to modernize own production or expand it.
- An equal advantage is the banks offering flexible loan terms and with an individual repayment scheme.
- As collateral can become not only the property of the enterprise, but also the property of the owner of the enterprise, there is also the possibility of using goods in circulation and even receivables.
The disadvantages of obtaining loans by legal entities include:
- Collecting a large package of documents.
- In the absence of collateral or guarantee, the interest rate will be significantly increased.
- Time consuming design.
- Mortgaged property has a high cost.
- The larger the loan amount or maturity, the more expensive financial resources will be.
Where to apply
The ability to go through the procedure of lending to legal entities is available in many financial institutions. And each such organization has its own unique lending rules and requirements for the borrower. Therefore, from the first steps it is advisable to submit an application to several banks at once. To date, the following financial and credit organizations hold well-deserved popularity in issuing loans to enterprises:
- Alfa-Bank - offers several loan programs for enterprises.
- “Bank of Moscow” - it is possible to draw up a credit line, overdraft, as well as targeted lending. There are programs for registration of commercial mortgages and refinancing programs.
- Sberbank - its proposals consist of express loans, overdraft, and targeted lending. The funds received can be used to purchase transport for an enterprise or real estate. Under some lending programs, collateral may be required, and for some there is no need for collateral.
- Express Bank "Vostochny" - its proposals consist in overdraft processing. Using the funds received, it is possible to replenish current assets. A business loan program does not require a collateral.
Types of lending
Banks offer various types of lending to legal entities. Each type has its own design features, repayment and use. When choosing a particular type of loan product, it is worthwhile to understand for what purpose borrowed funds are required. What product options can banks offer:
- Credit line - with the help of such loans regular replenishment of working capital is carried out . The use of these funds is possible in settlements with suppliers to pay for goods (services) or to finance ongoing expenses. This type of lending is renewable or non-renewable. The interest rate is fixed or floating. Registration of such a line does not require the provision of collateral, but nevertheless, by providing any value, the borrower receives from the bank the opportunity to obtain a loan on more favorable and optimal conditions.
- Budget loans - registration of such loans involves support from the state. Offered to those companies that have signed government contracts (guarantees).
- Urgent loans - for prompt receipt of the right amount of cash.
- Express loans - refers to expensive loans, since the interest on them is really high. Their advantage is the high speed of issuing funds to pay for any goods, components or raw materials.
- Overdrafts - this type of lending is preferred by most large companies. The convenience of such a loan is to regularly replenish the account with borrowed funds in the required amount. Payment of such a loan is carried out at the expense of the enterprise by debiting funds from the account in automatic mode.
Interest rate
Overpayment on a loan is directly dependent on the interest rate. And today the average interest rate offered by a legal entity is approximately 18%, and the fact of providing collateral is not important. Such interest rate may be reduced in the following cases:
- The borrower is a regular customer.
- Providing collateral.
- Long-formed business relationship.
Borrower Requirements
When applying for a loan, each bank puts forward its own conditions for lending to legal entities, but with regard to the main points, they are the same:
- Only a business owner or entrepreneur can become an applicant. It is possible to attract guarantors.
- Applicant must be at least 18 years old.
- Analysis of the financial activities of the enterprise should show a break-even operation of at least one year.
- The territorial proximity between the enterprise and the bank should not exceed 150 km.
- A prerequisite is the presence of a positive credit history. This item is subject to a thorough review by the bank security service.
- Even if the company does not meet all the requirements of the bank, it can still get approval for receiving funds. But at the same time, under the terms of the contract, the interest rate will be overstated, and the loan term small.
Documents for registration
As mentioned above, lending to legal entities in Russia will require a lot of strength and patience from the borrower. Preparation of the package of documents required for submission to the bank is time-consuming. At this stage it is necessary:
- Fill out an application for the provision of funds in the form of a banking organization.
- Prepare copies of passports of the chief accountant and owner of the enterprise.
- Certificate of registration with the IFTS.
- Statutory package of documents.
- Extract from the register.
- When providing property as collateral, submit documents on it as well.
- A package of financial documents to confirm the effectiveness of the enterprise and its stable condition.
- Contracts with various counterparties.
Maximum and minimum loan amount
Each bank presents its limits on the amounts provided. The minimum amount for issuing a loan is most often equal to 300,000 rubles, and the maximum amount to be received can even be 150 million rubles. Making a loan for a large amount implies the transfer to the bank of valuable collateral with the condition of attracting guarantors.
Repayment conditions
The calculated payment procedure can be differentiated or annuity. In any case, the form of this or that calculation is negotiated with the borrower himself during the execution of the loan agreement. As a rule, banks when lending to legal entities prepare an individual payment schedule.
In the conditions of the contract and in the schedule itself, the repayment date of the next loan payment is indicated. There is a possibility of early repayment, while the banking organization does not have the right to additionally charge any fees or penalties. The procedure for providing credit funds to enterprises is regulated by the Tax Code of the Russian Federation, as well as the laws: Federal Law No. 86, Federal Law No. 218.
Conclusion
The above article showed that any enterprise can use the services of banking organizations. Lending to legal entities has its own characteristics. First you need to determine the purpose of obtaining and make the right choice not only of a credit institution, but also of a banking product, the conditions of which will be especially convenient and comfortable. The funds received can be used for different purposes or have a specific purpose of use. Therefore, it is important to take this aspect into account when choosing and choose a universal loan or, nevertheless, a target one.