Loans for small business development from scratch: how to get? Possible variants, rules of registration

Young entrepreneurs who want to start their own business, in the first place, face the problem of a financial loan. Actually, making a loan is not so easy. The most convenient option is to borrow money from relatives, but not every person has such an opportunity. In this case, without services of the bank can not do: in fact, in any financial institution you can get a loan for the development of small businesses from scratch. It is recommended that you visit several of the most reliable banks with a good reputation and gather information on the terms of which they provide loans.

Loans to small businesses from scratch: how and where to get?

If you choose a bank, you can send it to the branch with the documents. In large financial institutions, there are almost always several types of loans with different conditions. These are standard programs with various additions - they are similar in essence. Employees, perhaps, will offer you to study the proposals of partner banks. The next step will be the development of a business plan taking into account the chosen program, marketing steps and regulation of other issues.

After collecting all the required documents, you need to apply for cash. It is necessary to prepare money for a primary contribution: this is usually a third of the amount of the desired loan. If you fulfill all the requirements, the bank will most likely meet its client.

It should be noted that the interest for which the bank can issue a loan is rather big. This is due to the risk of the institution, because it is much more than when issuing a loan in other areas. Due to the unstable economy of the country, banks with great caution give out loans for the development of small businesses from scratch. To increase your chances for a successful outcome, you need a competent and effective business plan.

Business plan

It should include a detailed description of the subject of business and the actions of the entrepreneur, monitoring the market , the availability of competitors, as well as a clear schedule of payments on the loan. It is very useful to supplement the document with accounting calculations - so specialists will be able to see from what means you are planning to pay off the debt. The business plan should be as convincing as possible, and also supported by a description of the collateral: real estate or cash. Refusal to provide collateral to the loan committee can be regarded as the uncertainty of the borrower in the return of funds. In this case, it will be very difficult to obtain a loan for the development of small business from scratch.

Additional factors

The bank will necessarily require a document on the income of an individual. It is issued by the tax service. This certificate can significantly affect the amount of the established percentage. And it's better to take care of getting the paper in advance, as it will take some time to decorate it. Such a certificate is in principle an indefinite document, but when considering a petition for a large loan, the bank can set a specific timeframe for issuing and specify the period for which reporting is required.

The Borrower will need a guarantor. It is important that he does not have debts and bad credit history. The presence of a stable business or other significant income from the guarantor will significantly affect the decision in a positive way. The borrower also should not have outstanding payments. If a person has a bad credit standing in another institution, the bank that is considering the loan application will certainly find out about it. It does not bode well for you.

Positive influence on the decision to grant a loan registration of permanent residence, the marital status of the borrower, it is desirable that it was a marriage registered by law. The pluses are also such characteristics: the right age, the availability of dependents, the absence of debts on housing payments.

Reasons for failure

The lending committee may prohibit loans for the development of small businesses from scratch in the event that the business plan is weak, inconclusive or very risky. In addition, you will not receive money if the employees have doubts about the organizational capabilities in relation to the scale of the project. A key role is played by the pledge, its absence or lack of liquidity, lack of a surety or doubt in its influence. The inability to compete with companies of the same profile in which it is planned to start a business, and the lack of significant advantages also play a significant role.

Sticking the borrower in the unreliability of the data provided or concealing facts that affect the solvency of a person - such violations can negate all efforts. In this situation, even a smart business plan will not save a person who hides important information from the bank.

Methods of obtaining funds

The decision to grant a loan takes place on the basis of two methods. The first - the conclusions of credit experts and subjective analysis. The second is the decision making by the scoring system. This method works on the basis of mathematical calculations, summing up the results of groups of a certain classification.

Other features

Interest should be shown to banks that have already implemented and are using a new service aimed at obtaining finance without collateral and paperwork. The whole process takes about an hour. From the documents you need only a passport and a certificate of income from the enterprise. The percentage is slightly higher than in the standard program, but you can get the right amount instantly.

If the bank refused to give loans for the development of small businesses from scratch, do not despair. Some businessmen are in a feverish rush to the black loan market. There, most likely, he will be rendered such a service, but for a larger percentage and a shorter period. In case of failure of a delicate conversation about the options for a refund, there is no need to wait. This is a very dangerous exercise.

Possible solutions to the issue

There are more acceptable workarounds, how quickly to get a loan for small business development. For example, you can take a cash loan, his bank will give out with great desire, especially on the security of real estate. The main thing is to check that the contract specifies that people can spend this money at their own discretion. Many beginning entrepreneurs take such a cunning line. The loan is issued by an individual, but they spend money on their business project. In most cases, banks do not track every person. Yes, this option is incorrect, but, most importantly, that it works. If you pay in time on the loan and do not test fate, the bank will not pay any attention to the purpose of the loan.

Alternatively, you can contact your business plan in organizations that specialize in supporting young entrepreneurs. If your project succeeds, they will help to solve the financial aspect or will suggest correcting the plan, which is also effective. You can contact companies that are interested in such a project. And, perhaps, they will give you money for loans. On the development of small business from scratch, you can get money in many ways. The main thing is not to give up. Also there are state programs and competitions. You can start well by joining the fight for a grant. A competent approach, perseverance and weighty arguments, brought in favor of his project, will certainly give the result.

Help to novice businessmen

Already for an existing business that requires additional investment, there is an easy way to get loans for development. Small business in this case will help microcredit. The term of such a loan is determined by the financial institution, depending on the purpose. When you take money to invest in goods or in working capital, the term can be limited to two years. If the loan is issued for the purchase of premises, equipment or tools, the time limits are extended to five years. The guarantee is required not always, but only by the decision of the institution. The bank that issues microcredit takes into account the specifics and stability of the business. The borrower will inevitably have to meet with the credit inspector, who can become a financial adviser to the business.

For entrepreneurs engaged in agrarian activities, there are banks that specialize specifically in working with this sector. That's where to get a loan for the development of small businesses in the field of agriculture.

Such financial institutions are ready not only to provide a loan, but also to help the business during the current activity. Specialized organizations take into account the specific nature of agricultural work. In addition, preferential programs and deferred payments are available to the borrower , which is very convenient.

Conclusion

Correctly picking up the bank, you can significantly increase the company's income by overpaying a small amount of interest. Real saving will be a loan for the development of small business from scratch. How to get money to realize your dreams, now everyone knows.