Loan for small business development. Problems in obtaining
Weak development of entrepreneurial activityis a consequence not only of the administration and regulatory policy of this sphere, but also of problematic access to borrowed funds. The fact is that even before the crisis, a loan for the development of smallbusiness was not one of the priority banking products.
Key problems of lending
The main problem of this attitude isopaque structure of the enterprise. Primitive level of financial literacy of an entrepreneur is a useless, and often risky, for banks. Even a stable financial company with transparent activities does not always manage to take out a loan for the development of small business. What can we say about the lack of skill in the entrepreneur to compile an elementary financial and accounting report for the bank. The next problem is a small percentage of equity in the statutory fund of the enterprise. It is very difficult to get a loan for the development of small businesses, if the balance of the company is only 5 - 15% of its own finances, and the rest - borrowed funds. Any mistake in running a business can turn into bankruptcy. For a stablethe company needs at least 30%of its own funds. In addition, for the bank to provide a loan for the development of small businesses, you will need to have a business plan, which indicates all the stages of the company's development. But in this case the financial literacy of entrepreneurs leaves much to be desired.
How to get
Before issuing a loan for the development of smallbusiness, Sberbank, VTB or other credit institution will require mandatory provision of guarantees for its return. Repayment of a debt is made at the expense of the received profit of the enterprise, without withdrawing money from circulation. Hence, the income received must be significantly higher than the interest rate, so to obtain a loan, you needreally evaluate the possibilities of your business.In addition to high income indicators, the applicant must show security for the loan. As such security banks take collateral, which must be liquid and comparable to the requested amount. An indispensable condition for issuing a loan is the existence of an insurance policy not only for pledge and profitable assets, but also for the life of the owner of the enterprise. A loan for the development of small business will require the availability of guarantors from among business partners, legal or private individuals, as well as key business figures. Such support will show the reliability and good reputation of the applicant. In addition to the full package of documents, the bank may ask for an agreement on the right to write off available funds if there are violations of credit conditions on the part of the borrower. The next step in issuing a loan will be the verification of the borrower's trustworthiness. And only after that the security service makes a decision: either "yes" or "no". The third option can not be. What are the employees of the bank guided by, announcing such a result, is confidential information. Moreover, the reasons for refusal are never communicated to the client. This is the generally accepted policy of the work of all banks.