Loans have long entered our lives and are very popular not only among ordinary people, but also among individual entrepreneurs and organizations.
Recently, the greatest demand for them has been shown by entrepreneurs.
The fact is that a loan for individual entrepreneurs is a special type of loan that can be issued either to open your own business or to expand it. Their main distinguishing feature is a reduced rate on it, as well as the possibility of obtaining a larger sum of money for a longer period (unlike individuals).
All loans issued to entrepreneurs today are divided into two categories. The first are issued for the opening of their business. The second - to expand the existing business. The first loan for individual entrepreneurs is issued by those entrepreneurs who just want to start doing business. Here it is necessary to say that loans to novice entrepreneurs are issued by a small number of banks.
This is due to the fact that at present more than half of all start-up entrepreneurs become bankrupt in the first two years, which means that they lose the opportunity to pay on debt. To obtain
such a loan, you must provide the documents, a list of which is issued by the bank. Mandatory document is a business plan.
The second type of loan is intended for those who are already doing business, but want to expand the scope of their activities. This type of loan is issued by a much larger number of banks. This loan for individual entrepreneurs is much easier to obtain than the first. But at the same time, it is necessary to remember that it is targeted, and you will have to account for the money received. Such a loan is issued for the following purposes: increasing the volume of current assets, purchasing materials and various raw materials to expand the business and increase profits, as well as for the acquisition of various property assets.
It should be noted that it is impossible to obtain such a loan without presenting a business plan. Indeed, it is in this document that the borrower must not only indicate the purpose of lending, but also prove by rationalization the rationale for their acquisition.
But, despite the fact that a loan for individual entrepreneurs is very popular, that such lending is carried out as part of a program to help small businesses, obtaining such a loan is not so easy and simple. The fact is that many banks are simply afraid to carry out this type of loan because of the high probability of not getting money back. Therefore, many entrepreneurs cannot continue to conduct business actively due to a lack of funds or the lack of the necessary collateral for a loan. Because of this, many entrepreneurs are forced to either close their business altogether, or look for alternative sources of funds.