A business loan allows you to open your own business. Concessional lending is an excellent initial start for young entrepreneurs. However, in this area, there are certain aspects that must be taken into account when borrowing money.
Who will the government help?
Credit is given for a specific purpose. It can be not only a start but also a simple replenishment of funds for turnover. Also, a banking organization lends to pay off various debts or to purchase equipment.
In different regions of the country, lending conditions are somewhat different. The path to obtaining a loan to start your own business will begin with preparatory steps.
- Definition of collateral. A banking organization is wary if a company that needs a loan does not have vehicles, real estate and other collateral. Getting a loan for a small business from scratch without providing collateral is not always possible. Also, the businessman himself should think about whether repayment of the loan will cost the payment of interest. If there are no savings for this, it is necessary to prevent possible risks by the presence of collateral.
- Business plan. The project for the bank must be described in detail. Based on the business plan, the bank’s management will decide whether it is possible to provide funds for promotion.
- Registration of LLC or IP. To obtain, you will need documents confirming your tax registration.
In the process of choosing a bank for taking a loan to open a business, it is important to pay attention to the rates and terms of lending. It is better to learn from the bank’s customers how they are served in the organization. After completing all the preparatory steps, you can apply.
Features of business lending
In the West, lending to entrepreneurs is more developed from the very start. On the territory of the Russian Federation, this practice has not yet gained momentum. In Russia, the percentage of such lending is 1.5 to 2.5%. In Western countries, it is much lower.
There is a similar situation because the opening of any activity in modern market conditions is associated with certain risks. The bank does not want to lose its money. Also, the decision to obtain a profitable loan for the rapid development of one’s own small business is influenced by the lack of a history of loans. Primary firms are closed, not even showing full potential in the activity. With caution, banking structures treat the financing of young entrepreneurs.
The banking organization draws attention to the specific purposes for which the loan is taken. Such institutions develop special programs to stimulate lending to entrepreneurs.
For individual entrepreneurs, there are quick loan programs, as well as standard options. Relevant secured loans, as well as advantageous offers with reduced interest rates.
The conditions and the interest rate will be calculated by the employees on a purely individual basis. The needs and opportunities of young entrepreneurs are taken into account. How exactly can you get a good business loan?
Requirements for the borrower
There are certain aspects that guide banks:
- Presence of collateral.
- Insurance policy.
- Project plan.
Employees of the organization carefully study information about creditors. A loan program is being developed with a variety of conditions and restrictions. If the business has been operating for many years, then a positive response is basically guaranteed.
In addition to collateral, the bank takes into account the presence of positive credit history. The loan is not issued to a malicious violator and defaulter. Before applying for a loan, the financial performance and reputation of the borrower are considered. If the company occupies a leading position in the market, then it is much easier to get a positive answer. When lending to a young company, the material and technical base and direction of the business is taken into account.
The main requirements of the banking structure for the applicant:
- age from 23 to 65 years;
- valuable property;
- Russian citizenship;
- bank account;
- income statements;
- closing previous loans;
- lack of a criminal past;
- absence of public debts.
Where can I get a loan to start a business? Before submitting an application, it is necessary to understand that the government of the country highly appreciates the activities of the IP. There are special financial methods for lending to small businesses. The federal government and administrative departments are involved in the development of special tools.
Stimulating lending to SMEs
A major SME project has been developed to stimulate the process. The Ministry of Economic Development and the Central Bank participated in the development. Now, a completely new tool is in place to support IP.
The fixed percentage is from five million rubles at the level of 11%. Funds on similar terms are issued by 45 Russian banks. Funded areas include the production of various products, construction projects, agriculture, cargo transportation, water, and gas supply. It is also possible to lend to companies that provide high-quality communications. A loan from the state is issued as preferential lending. Garant is an organization “Federal Corporation of SMEs”.
The free basis for obtaining financial resources is the most profitable and in demand. Subject to all the requirements of Russian laws and in the absence of outstanding debts, an entrepreneur can receive the necessary assistance. He has every right to do so.
When applying for a federal or regional subsidy, you will need to choose the direction of business. This choice should be taken responsibly. A free loan on hand is issued in the amount of up to 15 million rubles. Within the framework of competitions of the Ministry of Economic Development, three hundred thousand rubles are issued to individual entrepreneurs.
Loans to start your own small business almost from scratch are possible with the help of a good fund. It is profitable to take funds in non-governmental and governmental structures. Within the forums, there is a program for young Russian businessmen. You can get a loan with no collateral or collateral. The Youth Business International Foundation oversees the youth lending program. An individual entrepreneur can take up to 3 million rubles with it. In this case, the interest will be only 12%. Under various circumstances, the fund may delay the repayment of the debt for six months. Such lending is very beneficial for beginner entrepreneurs.
Also, the funds have permanent promotions for starting an IP. The age of the applicant must not exceed 35 years, and a ready-made plan for the development of one’s own business is also required.
Top 5 business loans
The most profitable options are not included in the SME programs. It is possible to issue a loan to beginner individual entrepreneurs who have been on the market for more than one year. In the presence of collateral, the bank conducts business conversations with guarantors and borrowers.
5th place — loans from JSC Alfa Bank
How to quickly get the right loan for a small business in Alfa-Bank? This Russian banking organization operates, focusing on customers. Collaborates with SMEs and provides loans to new entrepreneurs who are starting from scratch. Lending is provided on a concessional basis. The banking structure develops financial programs for obtaining loans:
- “Partner”. Loan at 16.2% – 17.3%. You can take 300 thousand – 6 million rubles. The program does not require a deposit. The existence of a current account in this bank is indispensable. Loan repayments are broken down into different periods.
- “Overdraft”. A loan can be provided for a variety of business needs. Available for 12 months. You can get from 500 thousand rubles and up to 6 million. The rates are over 13 percent. No deposit required, but a fee is charged.
4th place – business loans from JSC Rosselkhozbank
The specialization of this banking organization is the financing of agricultural enterprises and food industry firms. There are numerous targeted loan programs. The most popular types of loans are:
- “Optimal”. Cash withdrawal from 100 thousand to 7 million rubles. The loan is given for 5 years. You must leave a deposit. They can be special equipment, equipment, real estate. The minus of the program is the lack of extension of payments;
- “Fast decision”. A loan of up to one million rubles is given. The repayment period is about a year. No deposit required. The loan is used for various business needs.
Here it is easy to get a loan to start a small business from scratch. Interest rates of the organization vary within different limits.
3rd place – target loan from PJSC Russian Capital
The program operates at 11% per annum. Gives the opportunity to receive very large sums of money. Lending for 10 years is possible. The loan received can be used to equip the company with the equipment and purchase goods. A one-time loan may be issued. Loan terms for small businesses are quite comfortable.
To borrow money, you will need the support of a guarantor. There are certain conditions for a financial loan – the business must operate for about 9 months.
2nd place – non-targeted business loans of PJSC Sberbank
Business and entrepreneurial business on credit is quite possible with Sberbank. The organization is well known for lending to individual entrepreneurs. There are three popular options here:
- Trust program. Money is issued for 3 years at 17% per annum. The possible amount is up to 3 million rubles. No proof of solvency is required;
- Express Overdraft. The repayment terms have been reduced to 12 months, the interest rate is 15.6%. The maximum payout is 2 million rubles. No collateral required.
- “Business Turnover” and “Business Invest” Loans are almost identical with the same rate of 11.7%.
1st place — loans for business development PJSC Bank VTB 24
The banking organization has an investment offer. You can get a loan for any line of business, the purchase of equipment and goods. Demanded programs:
- “Target”. The loan is issued for the purchase of the necessary equipment. The repayment terms are about 5 years. The rate is 10.9%;
- “Investment”. Used for a variety of purposes. Loan terms are up to 10 years. The rate is up to 11%. However, collateral and guarantors are required.
- “Kommersant”. Express loans for the development of production or trade at 13%. Amounts up to 5 million rubles are issued. Payments are broken down by the desired repayment period. The loan is not targeted.
What documents need to be provided
Loans for the development of your own small business from scratch require the collection of a certain package of documents. An individual entrepreneur will need to provide:
- loan application;
- TIN certificates;
- financial reports;
- activity license.
Additionally, an EGRIP certificate, a certificate from a bank on a current account may be required. It is also necessary to provide a business plan, cash documentation, a list of material assets (for a secured loan). To get the right business loan, you may need a letter from a guarantor.
The final document for receiving funds is an agreement with the bank. It has a payment schedule. The agreement must specify the possibility of early repayment, the interest rate, the rights and obligations of the parties. The contract also specifies the number of possible penalties.
The main document should clearly spell out all the nuances, conditions for granting and repaying the loan. Obtaining loans to develop your own business is a responsible process that requires special attention to all documents.
An individual entrepreneur at his start can receive loans from a state fund or bank. Organizations created by the entrepreneurs themselves also provide material support and profitable loans for doing business from scratch. The main one is the development and preparation of a business plan. It must be convincing enough for those who provide the loan. You also need to take care of collateral and guarantors.