Axiom of trade – any business needs of financial investment. This is particularly true in the start-up phase. To earn money for a business project, you must invest in it first. Large projects require big funds, small ones – a little less. In principle, however, it is impossible to get rid of costs under normal conditions.
Well, if a start-up entrepreneur has to have some money. And if not, there are several options where you can legally raise funds. One is obtaining a business loan from the bank. Its conditions should be relaxed compared to normal conditions. Otherwise, the successful start of the project cannot be seen. But there are some subtleties and roughness.
Risks to parties
Commercial banks provide loans only under-interest. Generally or preferably, but in addition to the loan itself, the accrued interest will have to be returned. If the business is successful, such a financial loan, no matter how hard it is, will pay off. And if not? A failed entrepreneur loses not only his business but also his assets. And then it will remain the debtor with all subsequent legal consequences.
It should be noted that the bank commercial development loan is considered a risky transaction. There is no unconditional assurance that a newly arrived merchant loan obtained to start a business from scratch is not.
In the worst case, when the possibility of ruins appears on the horizon, an unfortunate entrepreneur may declare bankruptcy after a certain period of time (mainly a month) and refuse to return the money received to the bank.
And yet, how to get a business loan from scratch? This is no more difficult than getting a regular training loan, improving housing conditions, buying a car, etc.
Despite these risks, credit preferential conditions for small businesses are slowly but still renewing. Including a business loan from scratch is possible under certain strict conditions. However, there are no excessively impractical points in the contract:
- Good credit history of the borrower. Problems with paying past loans, outstanding loans or late payments may be grounds for refusing a loan.
- Professional business plan. The obvious possibility of earning money early, though small but stable, will force financial experts to agree with the borrower and issue the right solution.
- Presence of employment, provision of additional income. Solid income allows you to successfully repay a small business development loan from scratch.
- The presence of personal property that can be pledged on credit. This is a serious guarantee of compulsory compensation.
- Presence of a reliable guarantor.
- Existence of initial financial capital, which is approximately 25% of the amount requested.
There are other circumstances regarding how to get a commercial loan from scratch. It is worth considering at least some of them.
Where to get a small business loan from scratch, to which bank to contact? It should be understood that firstly, not all financial institutions provide such loans, and secondly, the requirements and offers of the bank differ, and the entrepreneur, of course, wants to choose the most profitable option.
Russians who want to organize their own business can receive help from several financial institutions. Which banks provide loans to businesses from scratch? A small business loan from scratch is available in several banks of the Russian Federation – more about them below.
Good Credit offers the most advantageous prices for legal entities registered in Russia and has quite different conditions, including business loans for entrepreneurs. Approaches to LLC and IP vary significantly. Assets are often required to secure credit. Specific examples:
- Express micro. The loan is granted from 30 000 to 600 000 dollars for a period of 3 months to 3 years. Pledge personal property is not necessary.
- Small loan. Funds are issued for the protection of personal movable or immovable property for a period of 3 months to 7 years. The amount of credit, in this case, ranges from 600,000 to 30,000,000 dollars.
- Under contract. By issuing such a loan, the bank subsequently has the legal right to claim amounts under the contract. The loan is granted for a period of 3 to 12 months. The volume of the loan, in this case, ranges from 150 000 to 6 000 000 dollars.