Initial capital is required to open a business. Necessary will be the cost of renting or acquiring premises, purchasing equipment, raw materials, salaries to employees. But not all aspiring entrepreneurs have the required amount. In such cases, unsecured loans are issued for small businesses. Details about their design are presented in the article.
Advantages and disadvantages
Any service has pros and cons. Unsecured loans for small businesses are no exception. The main advantage of the service is the lack of security. But this is fraught with some nuances. After all, no bank wants to allow the loss of its funds. Therefore, such loans are issued for a short period. In addition, the amount will be much less.
Unsecured loans for small businesses have a higher rate. The application review period is shorter than with secured loans. Indeed, to make a decision, verification of collateral is not required: it is necessary to perform the analysis procedure, documents, and evaluate the property. If the answer is yes, you can immediately proceed to registration.
For what purposes is issued?
To determine the objectives during the issuance of a loan, entrepreneurs are guided by special rules. They are installed for each product in each bank separately. Small business loans without collateral are issued for various purposes, but always for business, and not for personal needs. An entrepreneur may apply to the bank if necessary:
- improve the financial condition of the enterprise;
- buy a room;
- realize investment goals;
- increase fixed assets;
- introduce innovative technologies;
- modernize the production line;
- increase in turnover.
A loan can be issued to attract customers, open a new direction, refinance other loans. Funds may be required to improve energy efficiency, productivity. Unnecessarily, loans are unlikely to be approved.
Nuances of obtaining a loan
In practice, no newcomer has a chance to get a loan from the bank if a pledge is not provided. The reason for this is that the company must have a movement of funds in its activities. The Bank analyzes the movement data to draw conclusions about the stability of the business and its prospects.
More likely to get a loan are entrepreneurs who:
- have been working for more than 1 year;
- have balance stability;
- successful in transactions with partners.
This is confirmed by documentation. Under these conditions, a decision is usually made quickly. Failure in this case is minimized.
Conditions
Small business loans without collateral are issued on the following conditions:
- age 23-60 years;
- permanent or temporary registration;
- surety;
- doing business from six months.
Before you make an unsecured loan for a small business, you should familiarize yourself with some of the nuances of its design. The peculiarity is that the borrower will be an organization, a legal entity. There are loans for small businesses without guarantors. But in this case, some other conditions will apply. Compared to individuals, there are not many small business lending programs.
Sberbank
Loans for small businesses in Sberbank are in demand. A lot of entrepreneurs apply to this institution. There is a section on small business on the bank’s website. Customers are offered several products. The list includes refinancing, loans for the purchase of equipment and machinery, unsecured loans for various purposes. The bank has a loan stimulation program.
What are the rules for lending to small businesses in Sberbank? For example, "Business - Turnover" is provided with a maximum period of 4 years, the rate is from 11.8%, and the minimum amount is 150 thousand rubles. This loan can be used by individual entrepreneurs and small enterprises, whose annual income is not more than 400 million rubles. The site provides a list of necessary documents. A decision is made after analyzing the financial and economic sphere of business.
"Alfa Bank"
Soft loans to small businesses are issued at Alfa Bank. Entrepreneurs can get a loan without collateral, collecting documents online. To do this, the service "Stream". For entrepreneurs and small businesses, a “spare wallet" in the form of an overdraft is offered.
The rate is 15-18%. New customers can claim to receive 500 thousand rubles - 6 million. And if there was cooperation previously, then the amount is 10 million rubles. Opening a limit costs 1% of the amount.
For medium-sized businesses there is express lending. There are offers secured by property rights. Moreover, the conditions for providing loans for all customers are individual.
Russian Agricultural Bank
On the site you can find sections for small and micro-business, as well as for medium and large. Loan applications are accepted online. There is a convenient function of communication with a specialist on the type of callback. Rosselkhozbank is involved in supporting small and medium-sized enterprises, so customers are offered different programs on favorable terms.
VTB-24 and VTB Bank of Moscow
As in other organizations, the bank has a business section on its website. There are several credit programs for small businesses: express, negotiable and investment programs. There are also loans for business development, for the purchase of offices, warehouses, retail facilities, targeted.
The maximum loan terms for all small business lending programs are different. But usually they are up to 10 years, and the rates are different - 13.5% (“Business mortgage”), 11.8 (“Investment” and “Revolving”). Applications are accepted through the site.
Tinkoff Business
This bank is actively working with small businesses and entrepreneurs. Overdraft and standard lending are offered to customers. To get a loan, an application can be issued on the site. After filling it out, a specialist contacts and requests documentation.
To obtain a loan for business, you will need a TIN, extract from the register, the PSRN, and a tax return. After receiving the documentation, the bank decides to issue a loan. If the decision is positive, the contract is executed.
Lending Rules
Lending programs are set up so that credit risks are minimized. Moreover, they relate to the borrower and the lender. The risk borne by the client relates to the inability to repay the loan and interest on time, which leads to bankruptcy.
The lender's risks are related to the loan term. It can be long-term or short-term, depending on the level of risk. To mitigate risks, lenders:
- They study the borrower, credit history, and analyze the financial situation.
- Get acquainted with the pledge (if provided), sources of payment.
- They analyze the risks and how to eliminate them.
Now almost every modern bank has programs for business. Clients should consider the offers of several banks, and then choose the most profitable option.