The microcredit business has been developing in Russia not so long ago, but has already become a leader among consumers. Many people seek services from such institutions. But for the foundation of his business, it is important to register it. How to open an MFI is described in the article.
Types of MFIs
Each country has its own types of MFIs. The legislation defines the form of their registration. The main feature of MFIs is a simplified lending system. These institutions are divided into the following types:
- Financial group.
- Entrepreneurship Support Fund.
- Credit union.
- Credit company.
- Credit agency.
- Credit Cooperative.
Some MFIs are considered subsidiaries of banks. For the latter, such cooperation is beneficial. Banks are given the opportunity to provide loans, the rates for which are significantly higher than those that it gives. But there is a risk of default on the loan. Supervises the activities of MFIs Central Bank of the Russian Federation. Any violations in the work of the institution lead to liability.
Differences of the organization from the bank
Both financial institutions provide loans to citizens. What is the difference between MFIs and a bank? Their difference is in the volume of loans provided. The differences are as follows:
- A loan is issued only in national currency.
- The IFF cannot unilaterally make changes in relation to the rate, the procedure for determining obligations under an agreement, the time of their validity, commission.
- A microfinance organization does not have the right to impose fines on a borrower who paid a microloan in whole or in part, ahead of schedule, if he notified about it.
- MFIs do not participate in the securities market.
- MFI has fewer requirements for the client.
In many cities you can meet such companies. They have bright advertising to attract customers. Although there are differences between organizations, in general, MFIs in Moscow and other regions work on a single principle.
Why are such institutions in demand?
The first organizations began to open in 2011. Since then, their number has increased. This is due to the fact that the state has little control over the activities of firms compared to large banks. The benefits of MFIs include:
- Simple registration of the legal entity from which the work will be conducted.
- Optimal leverage and soft economic performance.
- No insurance premiums are required.
- No required reserves.
- There are no requirements for the size of its capital.
MFI disadvantages
This type of business has the following disadvantages:
- There is a risk of defaults on loans. This must be taken into account when planning expenses and making a profit.
- In case of violations during the activity, the imposition of sanctions and fines is expected.
Before opening a new MFI, you should familiarize yourself with the legal aspects of the activity and carefully study the information about clients. Then the business will be truly profitable.
Options for starting a business
How to open an MFI more profitable? There are 2 ways to start an activity:
- Franchise work.
- Independent activity - through the opening of an organization.
Both options are common in Russia. New MFIs are regularly opened under franchise. This is a profitable option financially, so it is often chosen by novice entrepreneurs. A lot of work is done by the franchisor, which provides accounting and legal support, provides funds.
Be sure to train specialists, which reduces the risks of non-return and increases the rate of return on business. The disadvantages include high investments, although the price of the franchise is different. It is important to consider the amount of contributions, the return on investment, the level of participation of the franchisor in the work.
Another option is to create a company on your own. This method takes more time, besides, knowledge on working with borrowers, including problem ones, is needed. But with the investment of funds there is the possibility of obtaining large profits, which remains with the owner. If there is no legal department and security service, work with problem debtors is transferred to collectors.
registration
How to open an MFI? The law states that such a company can be founded by a legal entity that is registered in the form of funds, institutions, excluding budgetary, autonomous non-trade organizations, partnerships, and business companies. It is not necessary to obtain an MFI license. This requirement applies to banks. It is only necessary to have a certificate from the Federal Service for Financial Markets on registering MFIs. This document confirms the legality of the action. After registration, you can start a business.
To open LLC “MFI”, you must have:
- Charter company.
- Decisions on the establishment of the company.
- Form 11001.
- Order on the appointment of the general director with the duties of chief accountant.
- Statements of the tax system.
- State duty receipts.
- Request for a copy of the charter.
Obtaining Status
To register an MFI, the following documents are required:
- Application for entering information in the register of MFIs.
- Certificate of registration of legal entity (copy).
- The decision to create a legal entity and constituent securities (copies).
- Decision on the election of legal entities (copy).
- Information about the founders.
- Data about the actual address.
- List of documents.
The decision on the application is made in 14 days. After 10 days after receiving the FSFM documents, you can find your organization in the registry.
Raising money
It is important to know not only how to open an MFI, but also how to raise money. Institutions can attract funds from individuals: founders, participants, investors. At the same time, there is no limit on the amount of money attracted. If another person issues funds for a loan, subject to the conclusion of an agreement with one borrower, then the maximum amount is 1.5 million rubles.
If a private person transfers money to an MFI, then 13% tax is calculated from the organization’s income. In this situation, institutions withhold the amount individually and are calculated with the state budget. The depositor is given income, except for personal income tax.
The organization creates rules for attracting funds to deposits:
- Equity - not less than 5%.
- Liquidity - from 70%.
The equity of MFOs in Moscow and other regions includes capital, reserves, loans. When a company goes bankrupt, loan requirements are satisfied only after all debts are paid off. These conditions are considered unquestioning, binding and are indicated in all contracts. Quarterly calculations are carried out according to the financial statements that are submitted to the FSFM.
Investments and profit
To achieve a quick return on investment, you need to draw up a business plan for the organization. To open a business, costs are required:
- Capital investments.
- The capital for issuing loans is 900 thousand rubles.
- Purchase of equipment - 100 thousand rubles.
- Inventory purchase - 50 thousand rubles.
Current expenses include:
- Office rental - 20 thousand rubles.
- Salary for 4 employees - 120 thousand rubles.
- Advertising - 50 thousand rubles.
- Costs - 30 thousand rubles.
The amount of capital investment will be 1 million 50 thousand rubles, and current costs - 220 thousand rubles. The costs may be different, it all depends on the case, but in this example it will be possible to calculate all the nuances. If desired, you can organize an MFI franchise on favorable terms.
Business plan
When opening an MFI, you need to consider:
- The costs of maintaining the company, including office rental, repairs, salaries.
- Initial investment.
- Staffing schedule.
- Advertising.
- Losses.
- Payback period.
- Profitability.
MFI business is profitable, but at the same time it has a lot of competition. Therefore, the leadership of the company must be ahead of the competition. This is achieved through advertisements about promotions and special offers. An important aspect is the quality work of employees, which automatically promotes the business.
Risk accounting and work with debtors
Lenders have always been successful. Now many people turn to MFIs to get money, although the rates there are quite high. It is necessary to focus on people new to the financial sector. Urgent loans should be offered when a person needs funds here and now.
Almost all MFIs provide passport money. This loyalty increases profit margins, but risks also increase, as customers may not repay the debt. Therefore, the stakes are quite large. To stay in profit, the risk is laid in the bet. It is determined when drawing up a business plan.
It is important to consider the following nuances:
- If the borrower is carefully checked, then about 10% of the risk of default is laid in the budget.
- When granting loans with credit history checks, the risk of default is 10-20%.
- Urgent microloans issued by passport have a high risk percentage - 30-40%.
Return and profit is determined on the basis of how the work with debtors will be carried out. As a rule, in small firms there is no personal security service and lawyers. Therefore, it will be difficult to return funds. There will be no questions regarding the franchise. With independent work, debts are sold to collectors, but their value will be less than the total amount of debt.
Thus, when opening an MFI, it is important to consider many nuances in order to establish a profitable business and take into account all the risks. With a competent approach to business, it will turn out to conduct successful activities of the institution, which will only develop over time.