Many people, when starting their own business, prefer to register IP. This is due to the fact that you can choose simplified taxation regimes, and the registration process is considered simple and quick. It is especially important to register IP if it is planned to conduct a small business. If an individual entrepreneur operates under simplified regimes, then he does not have statements containing information about his income. Therefore, banks rarely provide large and profitable loans to individual entrepreneurs. Most often, businessmen have to rely on standard consumer loans.
FE lending features
Each bank wants its borrowed funds with interest to be repaid in a timely manner. Therefore, obtaining a loan by an individual entrepreneur is complicated by the inability of a potential borrower to confirm his solvency. The IP is required to have evidence that it will handle payments well, so there will be no delays.
Different types of reports generated and submitted by individual entrepreneurs to the Federal Tax Service act as confirmation. But usually they do not reflect the businessman’s income level, so you can only rely on a small loan amount issued at high interest rates.
The only option for an individual entrepreneur under such conditions is to open an account with a bank, where funds will be constantly recorded. By reviewing the account statement, a bank employee will be able to verify that the applicant has sufficient funds to repay the loan.
What does the bank value?
Before issuing borrowed funds, the bank must make sure that the entrepreneur is solvent, and also meets many requirements. Therefore, the applicant is required not only confirmation of solvency, but also many other documents.
As a standard, a loan is provided to an individual entrepreneur when these conditions are met:
- a high level of income, for which the size of revenue is estimated for a specific period of time, usually represented by the year, as well as tax deductions and net profit, if available in the financial statements;
- a good credit history, therefore, in the past, the potential borrower should not have delinquencies in other loans, and it also checks whether the businessman has tax arrears, how many loans were previously drawn up and paid, if there are any outstanding loans;
- owned property that can be used as collateral, and under such conditions, the maximum amount issued by the bank is calculated based on the estimated value of the object;
- the opportunity to attract a guarantor;
- the period of operation of the business, and it is standardly required that the entrepreneur work more than one year;
- the absence of significant administrative or criminal violations in the process of conducting business.
If there is good profit and stable operation, an individual entrepreneur can count on fairly good offers from banks. In this case, there should be no overdue and unsecured loans.
Types of offers
For banks, IPs are considered the most complex and specific borrowers, so they are offered a limited number of loans. It should be preliminarily assessed on which loans to individual entrepreneurs can be counted on. Banks usually require collateral or offer small loans. The most popular offers include:
- express loans issued in a few hours, and usually they are issued on credit cards;
- loans designed to open or develop a business;
- consumer loans with or without collateral.
If you plan to issue loans to individual entrepreneurs without collateral, then you should not count on a sufficiently large amount.
The nuances of express loans
They are issued to any entrepreneur or individual. The features of their design include:
- funds can be received in a short period of time, which usually does not exceed two hours;
- a small amount of funds is provided;
- significant money has to be paid for using money;
- the issuance of such loans to individual entrepreneurs is not accompanied by the need to prepare a large amount of documentation;
- You can get such a loan not only at the bank, but also directly at the store if you need to buy any large equipment;
- no need to confirm solvency.
Typically, IPs use this offer if they do not have enough funds to buy furniture or office equipment. An express loan also includes a credit card with a significant limit.
Business loan
Within the framework of such loans, specialized programs are usually developed by banks. According to them, certain requirements are presented to the IP and different conditions of registration are taken into account. If a citizen only plans to open his own business, then he often needs initial investments, presented in the form of borrowed funds. You can get a large amount from a bank to start a business under the following conditions:
- the availability of a competent, detailed and correctly calculated business plan with specific costs, estimated revenues and planned profitability and return;
- the opportunity to provide the bank with a pledge of valuable property represented by any real estate;
- an invitation from a surety represented by an officially employed and well-earning citizen.
Under such conditions, quite large loans are often made out, but if he can’t cope with the payments made by the individual entrepreneur, he will lose the collateral property, which will be seized and sold at the auction by the bank.
Business Development Credit
Additionally, loans are provided to individual entrepreneurs for business development. They are usually made out as part of special programs. It is allowed to direct funds for certain purposes:
- increase in assortment positions;
- purchase of equipment or vehicles for work;
- development of a new direction in business.
Under such conditions, the IP must confirm various facts:
- good solvency, therefore, official work of 1 year is required, positive results for various reports, as well as the movement of funds on accounts;
- positive credit history;
- There should be no tax debts or outstanding loans from other banks.
Standardly, under various programs, banks offer loans to individual entrepreneurs for up to 5 years in the amount of up to 1 million rubles. and with a rate ranging from 23 to 28 percent.
Consumer loan
It is considered the most popular among IP. It is issued to both businessmen and standard individuals. The main conditions for its design include:
- necessarily confirmed solvency by official papers;
- if the amount is drawn up, not exceeding 100 thousand rubles, then you need to prepare a full package of documentation with which to determine the stability and profitability of the existing business;
- if the amount reaches 500 thousand rubles, then a guarantor will be required, and banks have strict requirements for him, since he must work on official work, receive a high salary, and he must also have a positive credit history;
- if an amount in excess of 500 thousand rubles is needed, then collateral will be required from the borrower.
Thus, the requirements for borrowers depend on the amount drawn up on credit.
What is taken into account by a businessman?
An individual entrepreneur for a business should issue a loan carefully, as he must make sure that he can handle payments. Otherwise, he will have delays in which fines and penalties will be charged. This leads to a significant increase in the final amount that will have to be returned to the bank. When applying for a loan, you must indicate the actual goals for which the funds will be directed.
What documentation is required?
Many entrepreneurs work on the simplified tax system or UTII. Under such conditions, it is difficult to prove solvency. Therefore, the bank provides a loan to individual entrepreneurs upon presentation of numerous documents:
- copy of the passport;
- certificate of registration of individual entrepreneurs;
- declarations submitted to the Federal Tax Service during the last year of work;
- extract from the USRIP, and it must be received at the tax service immediately before being transferred to a bank employee;
- certificate from the Federal Tax Service about all open accounts;
- account statements indicating the movement of funds;
- certificate from the Federal Tax Service about the absence of tax debts.
Employees of any lending institution may require additional documentation. For example, documents for collateral, securities from the guarantor or invoice, price lists, cash books and other documents.
What banks provide?
Many lending institutions work with individual entrepreneurs. Sberbank loans to individual entrepreneurs are considered the most relevant and acceptable under the conditions. They are easy to arrange, and a low interest rate is also set. Various programs are offered, for example:
- overdraft in the amount of 150 thousand rubles. for 4 years at a rate of 14.8%;
- loan for the purchase of commercial facilities, for which an amount of 200 thousand rubles is offered. for up to 10 years with a rate of 15%.
Sberbank loans to individual entrepreneurs are provided only with a full package of documents.
Also interesting programs for businessmen are offered by VTB24, Alfa-Bank, Raiffeisenbank and Russian Agricultural Bank.
Clearance process
Due to the difficulty of confirming solvency, the process of processing a large amount of funds usually takes a lot of time. This is due to the need to confirm a suitable financial condition and optimal income of the future borrower. How to get a loan to an individual entrepreneur? For this, sequential actions are performed:
- a bank and a lending program are selected, for which the available opportunities and the objectives of obtaining a loan amount are taken into account;
- necessary documents are collected for registration;
- an application for funds is being submitted;
- You need to wait for the decision of the bank;
- if it is positive, then you should go to the bank branch to study the clauses of the contract, and it is advisable to use the services of an invited lawyer during this process;
- loan agreement is signed;
- funds are provided to the entrepreneur.
The standard process is carried out within three days. The period during which the citizen’s solvency is checked can be extended if he uses simplified taxation regimes during work.
For what reasons can I get a refusal?
For each bank, an IP is considered not a very attractive borrower. This is due to the lack of a constant and stable income, the inability to confirm accurate cash receipts for a specific period of time and the instability of the business. Therefore, usually the refusal to provide borrowed funds is due to reasons:
- low solvency ratio, determined on the basis of the submitted tax returns for the year of work;
- the availability of other outstanding loans;
- bad credit history due to regular delinquencies in past loans;
- debts on taxes, utilities or other important payments.
All applications are considered by a special department of a banking institution, whose employees have access to numerous databases and information resources. Therefore, they can quickly get information about the credit history and debts of a potential borrower. If a loan is issued to open a business, the refusal to provide funds is usually due to the lack of a business plan, the choice of an unpromising line of work or the inappropriate formation of a future entrepreneur.
Conclusion
Thus, each person who plans to open his own business must figure out how to get a loan to an individual entrepreneur, what types of loans he can count on, and what kind of documentation is required from him.
The procedure for lending to entrepreneurs is considered difficult for each bank. Numerous and stringent requirements are presented to businessmen. Often, applicants are denied a loan due to various reasons. The easiest and easiest way to get credit money is if you offer a pledge to the bank, a guarantor is involved, or an individual entrepreneur works according to the OSNO, therefore the amount of profit is clearly stated in its financial statements. You can apply for a loan at different banks, but it is advisable to choose specialized programs that offer profitable loans at reduced interest rates for businessmen.