From the above table, you and I can see which banks give loans to businesses. Let's take a look at what entrepreneurs should pay attention to when looking for a bank. The main selection criteria are:
the popularity of the bank (new banks lend to business with caution, and therefore offer inflated rates and various commissions. The larger the bank, the more loyal the conditions for receiving funds);
the ramification of credit programs (the more programs, the better. You can choose the target loan you are interested in on the most favorable terms);
commissions (some banks issue money with a commission, which on average takes up to 2% of the loan amount);
the possibility of early repayment (it is better to choose a bank where such a service is provided. There are also credit organizations that allow you to repay a loan ahead of schedule only after a certain time - from 3 months to 2 years. During this time, you will overpay a lot);
concessional lending (large banks cooperate with the state and offer loans at low rates and for a long time);
the presence of a current account (if you already have an account with one of the banks, then you should apply for a loan here. There will be favorable conditions and advantages for you);
a list of documents (choosing a bank that offers a simple package of papers for processing a loan, you will receive a high interest rate. The more complete the list of documents, the higher the likelihood of lowering interest to the minimum level);
collateral (some banks require full collateral for the loan, others do without it. Keep in mind that the presence of collateral or guarantors makes you a more reliable borrower, and therefore there is a chance to get a large amount).
How to get a loan and what is needed for this
Now let's find out what it takes to get a loan. Firstly, it is worth considering this nuance: loans for medium-sized businesses are issued only to registered legal entities. The same applies to individual entrepreneurs. If the opening of a business has not yet taken place, then this will become an obstacle to obtaining credit funds. Moreover, many banks finance only the business that was registered at least 3 months ago.
The procedure for obtaining bank loans for legal entities consists of the following steps:
choose a bank and decide where to get a loan;
we find out the terms of lending (you can read them on the website or contact the department);
we collect a package of documents (for this you need to visit the tax office, a notary, collect all the papers with regards to the collateral);
we submit an application (you can apply for a loan through the bank's website or directly at its branch. In the first case, it is enough to indicate a little information about your company, contact information and the desired conditions for the loan. Within some time, the operator will call you and inform you of a preliminary decision. If it is positive, then you need to visit a bank branch. When submitting an application through an employee in a branch of a credit institution, you may immediately be informed of a preliminary answer);
then the procedure for evaluating your collateral goes through (the specialist will find out the value of the collateral, and also assess the reliability of the guarantors);
making a decision by the bank (the waiting period lasts from several hours to 2 weeks. It all depends on the amount you declared, the purposes of lending and the bank's policy. The latter will study your creditworthiness and may draw attention to your previous experience of repaying loans in another bank);
if the application is approved, the operator will call you and invite you to sign the documents;
then you need to familiarize yourself with the terms of the agreement, the repayment schedule, check and sign all the necessary papers;
within a few days the amount will be transferred to your account, about which you will be notified by the bank employee.
After you receive the loan amount, the bank will periodically show interest in spending your funds if the loan was taken for specific purposes. You will need to provide supporting documentation for the entire duration of the contract.
The bank will also monitor the value of your collateral. Employees can arrange a visit to the location of the property and check its integrity, as well as compliance with the conditions stated in the contract.
What documents are needed to obtain a business loan
Depending on the terms of lending, Russian banks may require different documents for obtaining a loan. Some of them will relate to registration, which are necessary for the proper conduct of business, and some are financial reports, with the help of which the bank judges the reliability of the borrower.
The first block of documents includes the following:
taxpayer registration form with the Federal Tax Service (in the form of a certificate);
constituent documents certified by a notary;
a card with samples of signatures and seals;
orders for the appointment of persons with access to operations on a credit account;
information about the branch network of the company;
licenses and patents for activities.
balance sheet for the last reporting year;
balance sheet for the past quarter;
certificates of operations on settlement accounts opened with other banks (for a period of up to 1 year);
certificates of absence of debt to the state;
statements on available loans from other banks (not all banks lend if there is an existing debt).
Also, the specifics of the agreement with the bank may require the following documents for obtaining a loan:
bail papers;
agreements that you have signed with business partners;
business plan (if you want to get support for project financing).
General requirements for borrowers
When issuing loans for small businesses, the bank risks its own funds. And taking into account the fact that the funds are provided are considerable, then the bank can lose a significant part of its capital. To mitigate the risks associated with the unfairness of borrowers, credit institutions impose a number of requirements on potential clients.
Banks issuing loans pay attention to the following conditions:
the period of the company's existence (it cannot be less than 3 months, although many banks lend to legal entities registered no earlier than a year ago);
the activities of the company do not bring losses (for this, the financial statements are carefully checked);
availability of security (it can be a pledge, surety of third parties or guarantees);
no overdue debts in other banks and good credit history;
the firm is not involved in fraud;
a legal entity regularly pays taxes and contributions to off-budget funds;
if a loan is issued to an individual who owns the company, then his age at the time of completion of the contract should not exceed 70 years (some banks deviate from this rule);
the borrower is a resident, and the company is located in the region where the bank is located.
Which business is most often approved for issuing a loan?
Commercial banks lend to both start-up businesses and those registered a few years ago. Trends in the issuance of funds have not changed for a long time: there are several topical areas that banks are very willing to lend. So which small business is credited to?
Among the areas of lending are:
production (especially if you are engaged in demanded technology, equipment);
agriculture (in this area there are government programs that are actively supported by many large banks);
highly liquid sales (such a business pays off at a high rate, which gives the bank hope for a loan repayment. Drinks, including alcohol, tea and coffee are sold quickly and with a maximum mark-up. In this area, it is easy to get a loan for small businesses);
the sphere of real estate (today this area is in great demand, and new housing is in special demand among the population. Construction of inexpensive housing with subsequent resale is a fairly common type of business);
socially significant projects (services for the population, for example, small kindergartens, schools, etc. The loan is issued for small businesses, mainly for individual entrepreneurs);
infrastructure development.
At the same time, there are oversaturated areas that are not suitable for a business from scratch, since banks are reluctant to lend to them. These include:
small trade;
restaurants and cafes;
travel agencies and others.
In what cases is a deposit required?
Conditions for obtaining loans for legal entities are often associated with collateral. It is not required in the following cases:
loan amount up to 3,000,000 rubles;
the loan is issued for any purpose;
loan term - from several months to 1 year.
If you want to get a loan on the most favorable terms and even for a large amount, then collateral in the form of collateral will become a prerequisite when submitting an application. Also, a deposit will be required in the following situations:
the acquisition of property, which you will be able to dispose of only after the loan is paid off (you buy an object, which becomes a pledge);
for any types of targeted lending (for working capital, real estate, transport, equipment, etc.);
long-term lending (programs for a period of up to 20 years are not issued without collateral);
loan with state support.
If you want the application to have a high chance of approval, then it is better to provide the bank with a collateral. Moreover, its amount can be from 70% of the cost of the loan. An accurate assessment of your property is made by a specialist on the date of taking out a loan and periodically during the term of the agreement with the bank.
The pledge can be:
movable and immovable property (buildings, cars, land plots);
machinery and equipment;
securities;
deposits;
company goods and stocks;
property rights and so on.
Average interest rates and what they depend on
In 2017, interest rates on loans to legal entities in different banks vary from 10 to 30%. They depend on a large number of indicators, as well as the policy pursued by the credit institution. The main criteria affecting the value of the rate are as follows:
credit amount;
loan terms;
currency of payments;
availability of security;
company size;
the industry in which the legal entity is employed;
participation of the state in supporting business;
financial indicators of the borrower;
the creditworthiness of the debtor;
experience of previous lending to a legal entity;
availability of a current account with the creditor bank;
the current situation in the country.
The lowest interest rates are offered to large and reliable companies with extensive experience in repaying loans on time. The state can allocate funds to support business, and if it cooperates with a bank, then you are entitled to receive an interest rate equal to 9.6%. For individual entrepreneurs, the rates will be slightly higher, since this category of borrowers poses high risks for banks.
The presence of collateral also greatly simplifies and speeds up the process of approving a loan application for LLC and other forms of business. At the same time, you can get a loan at an attractive interest rate. The property is transferred to the management of the bank, which means that if you are unable to repay the debt, the credit institution will sell the collateral and return its funds.
Average loan terms for small and medium-sized businesses
All types of loans for business are issued for a specific period:
up to 12 months (short-term lending);
from one to 5 years (medium term);
up to 15 years (Long-term).
The most relevant term for providing financing to small businesses is a period of up to 3 years. The bank can issue large sums to large companies for 5 years. The longer the term, the greater the bank's risks associated with the loss of funds.
Medium-term loans are targeted and are issued for:
purchase of working capital;
for business development;
investment projects and so on.
You have the right to reduce the loan term if the terms of the agreement with the bank allow it. If there is a financial opportunity, then you can return the funds earlier without overpaying the loan. Some banks have developed a system of fees and penalties for early repayment. This point should be clarified immediately when choosing a bank. The latter does not want to lose his profit, and therefore tries in every possible way to limit the client's freedom of action in relation to borrowed funds.
What to do if you are denied a loan
A bank's refusal to obtain a loan for a business is not uncommon. Moreover, banks are often silent about the reasons for such an action, which is due to the rules of their work. If the credit institution has not approved your application, this is a reason to think about what nuances were not taken into account in the procedure for processing funds.
Which bank gives a loan without refusal? There is no unequivocal answer to it, since each bank has its own policy, operating procedures, and no one canceled human mistakes.
In case of refusal, it is recommended to wait a while and start your own business, in order to subsequently reapply (possibly to another bank). Reviews of numerous bank clients say that you should pay more attention to the preparation process before applying for a loan.
Don't forget to consider the following points:
collect a package of documents in a complete set (papers must be properly certified with the necessary signatures and seals. If the bank requires originals, then copies will not work. Certificates have their own expiration date, which is better to clarify in advance with the credit institution. Also, do not neglect the form with credit history, which will tell the bank a lot about you);
provide high-quality collateral for the loan (if you attract guarantors, then the bank should not doubt their solvency. These persons must also provide the maximum possible package of documents and, most importantly, confirm their own financial solvency. It would be better if the value of the collateral provided exceeds the declared amount of the loan. So the bank will have more confidence in the return of its own funds);
you should not apply for a loan by power of attorney through third parties and specialized firms. Banks are wary of these categories of borrowers and prefer to deal with the top officials of the company;
pay special attention to the financial statements of the company (put all the papers in order, the bank should not have any suspicions about their reliability)
When applying for a loan, study the conditions of the bank in advance. Perhaps they stipulate the nuances under which your company does not fall as a borrower, and this will become a 100% refusal to issue money. And remember that any refusal to issue bank loans (even through no fault of yours) is reflected in your credit history, which may cause banks to reluctance to cooperate with you. Therefore, after a refusal, you should not immediately visit many banks, it is enough to wait a while.
Small business loans are a tool that gives a start to a new project. Starting your own company or starting a project is always associated with serious costs. But, unfortunately, not every beginner entrepreneur has sufficient funds. Understanding the pitfalls of lending programs is not easy.
Risks and prospects
One of the most important points that a novice businessman should take into account when attracting credit funds is the possible risks. It is necessary to clearly understand that gratuitous and irrevocable (from the state, for example) loans in nature do not exist. At all. There is no such thing in Russia as a social loan for starting a business.
A loan is funds that a bank lends to you with the condition of repayment and payment of interest on time. There are no other formulations.
Your debt will have to be serviced and repaid. It probably isn't worth explaining what will happen if business prospects are overvalued. We have already described quite fully the scenarios for the development of such a situation in the material.
Only a balanced approach to attracting credit funds will allow avoiding epic failures and, as a result, the end of an entrepreneurial career. Before plunging into the wonderful world of borrowed money, evaluate the rates, interest and conditions and re-analyze your business plan. Only in this way you will understand whether it is worth using the help of the bank.
According to fairly authoritative experts, loans in most cases create an additional burden on business. Last year, Boris Titov, authorized by the President of the Russian Federation for the protection of the rights of entrepreneurs, spoke succinctly on this score. He noted that high lending rates (for businesses) make Russian goods uncompetitive.
Titov was echoed by Sergei Litvinenko, an expert at the Public Duma center, adding that banks are tightening their policy towards business borrowers due to the growth of arrears and rates will only rise.
There is something to think about, right? The overdue debt was formed by fellow entrepreneurs who overestimated their strength. Therefore, if you can do without loans, then do just that.
Choosing a loan and submitting documents
If you consider the attraction of credit funds necessary, then the next question is: how to do it? Taking money for business development is not as easy as it seems at first glance. This is especially true for those who decided to start their own business from scratch.
So let's go.
1. Choosing a loan product
Banks offer several types of business loans, which can be conditionally divided into types:
- Universal loan for business. The loan is most popular due to its fairly democratic terms of use. Money can even be spent on digging trenches in the Himalayas, if it brings you profit.
- The loan for current activities is a revolving loan. In this case, funds are provided for the purchase of fixed assets or their replenishment in circulation. Fixed assets are assets that are involved in production and are not consumed in the process. For example, a shovel is a staple tool for a trenching entrepreneur.
- Commercial mortgage. This point is self-explanatory. You need to store your shovels somewhere. The pledge is the acquired property - your warehouse of shovels. If you stop paying, the bank will take and sell the warehouse at the auction.
- Investment loans for business. A very interesting tool. The bank lends money to your startup, as well as to expand production facilities. The loan will be approved if you are solvent, and the business plan proves that if you need to invest 50 thousand in shovels, then you can earn a million by digging trenches.
- Factoring. A specific type of financing based on the assignment of debt for goods, works or services supplied by the client. You can borrow a shovel from a shovel store, and then ask the bank to buy back your debt.
- ... Financial lease of real estate, equipment or vehicles with subsequent purchase. The cost in leasing is paid in installments. In this case, you will pay for the rent of the shovel from the bank, simultaneously buying it into property.
- Refinancing. It can be used to close other loans in order to optimize conditions. A shovel bought on credit at 2% is always better than a shovel purchased at 22% per annum.
Banks are most active in issuing loans with collateral: leasing, mortgages, revolving loans or loans with a guarantee. Loans without collateral and guarantors are considered high risk and are less frequently issued.
2. Submitting documents
- Take care of the timely provision of all documents that the bank will ask for in confirmation of solvency. References, certificates, etc. should contain only reliable and up-to-date information.
- Banks conduct a fairly strict check of the package of documents for LLC and individual entrepreneurs. Pledges are also controlled. If the certificate states that you have 500 new shovels on your balance sheet, then please present them to the inspector. This does not apply to goods in circulation, the presence of which can only be confirmed by documentary evidence.
- For investment loans, you will need a good, which we have already mentioned. He, too, will be scrutinized. A sample document can be provided to you at a credit institution.
- Separately, it should be said about the credit history. It must be protected from a young age. Skeletons in the closet (like the missed payments on a shovel loan) bring down your chances of getting a loan to zero. Even if you paid off the debt, information about this fact will be stored in the credit bureau for another 5 years.
Separately, it should be said about the credit history. It must be protected from a young age. Skeletons in the closet (like the missed payments on a shovel loan) bring down your chances of getting a loan to zero.
- Relations with banks must be flawless for all parties to the transaction: an individual entrepreneur, guarantors, founders or the sole owner of the LLC.
- Novice entrepreneurs should remember that in some cases it is easier for an individual to get a loan and use it to start a project than for an entrepreneur. There is a drawback to this method. You can get a large loan only on the security of expensive property, such as an apartment. Funds can be spent on the purchase of a ready-made business or franchise. If there is no need for significant funds, then you can get a short-term consumer loan.
According to statistics from the Central Bank, the volume of loans issued by various credit institutions in Russia in the segment of small and medium-sized businesses amounted to 2.005364 billion rubles in 2015.
Which bank should you choose?
So, you have decided on a loan product and prepared documents confirming your solvency or business plan. And your credit history is all right. Go ahead and choose a credit institution to which the documents and business plan need to be taken.
Not all banks provide loans to small and medium-sized businesses. The main and largest players in this market are Sberbank and VTB-24. Similar services are provided by Alfa-Bank and some other credit institutions.
Sberbank's offerings currently include:
- loans for any purpose (universal);
- loans to replenish working capital (circulating);
- loans for the purchase of vehicles, equipment and real estate (leasing, commercial mortgages, etc.);
- refinancing loans (shovels at 2%, remember, right?).
Loan rates range from 14 to 23% per annum, terms vary from 6 to 36 months.
VTB Bank offers entrepreneurs:
- investment loan (for business development). The bank is ready to issue 850 thousand rubles or more and provide a repayment deferral of up to 6 months (for a business plan for digging trenches);
- "Target" loan for 5 years with a repayment delay of up to 6 months (only for the purchase of shovels);
- negotiable in the amount of 850 thousand rubles and for a period of 24 months;
- a business mortgage for a period of 10 years and an advance payment (down payment) of 15%.
Interest rates on business loans at VTB are from 14 to 25% per annum.
Perhaps the most interesting offer from Alfa-Bank is currently the Partner loan. It is designed for clients who have a current account with this credit institution. According to the terms, the borrower can receive up to 6 million rubles for any purpose without collateral. The order of registration consists of five steps. Funds are disbursed through the client's current account.
Borrowing funds to develop or open a business abroad has become much more difficult. This is due to the sanctions regime and the tightening of risk management. And this is not very happy for entrepreneurs with foreign business experience. The interest rate in Western banks is much lower. For example, in Europe, according to Boris Titov, it is 2-3% per annum, and in China - 4-5%.
Another way of lending to small and medium-sized businesses is a private loan. A friendly organization can help you with funds on fairly favorable terms. This procedure is called a commercial loan and is regulated by the Civil Code.
Bonuses from the state
Loans for entrepreneurs, of course, are expensive, but the state is showing some involvement in the life of small businesses. Russia has certain programs aimed at supporting SMEs. In the regions there are funds for the promotion or support of small and medium-sized businesses and business development centers. It is here that you can get hold of a cheap loan.
Regional microloan funds are ready to provide a loan to a small business entity at a relatively small 8.5-11% per annum. This rate is valid in 2017. A microloan of up to 1 million rubles can be spent on the creation and development of your own business, replenishment of working capital, the purchase of equipment and other purposes related to the implementation of entrepreneurial activities. The procedure for granting a loan is similar to a bank, and you may need a collateral or guarantors. The maximum term for a microloan is 36 months.
What if you do not have property that can be mortgaged? Then guarantee funds will come to the rescue. They will vouch for you with their capital for a fee. The remuneration of the guarantee funds cannot exceed 1/3 of the refinancing rate of the Central Bank of the Russian Federation of the surety amount. Therefore, the maximum amount of the fund's remuneration is 2% per annum of the surety amount. You will have to pay this amount to the fund immediately upon concluding the contract. With such a guarantee, the chances of getting a loan from any bank or microloan fund increase significantly.
The remuneration of the guarantee funds cannot exceed 1/3 of the refinancing rate of the Central Bank of the Russian Federation of the surety amount. Therefore, the maximum amount of the fund's remuneration is 2% per annum of the surety amount.
The activities of guarantee funds and organizations that provide microloans are financed under the state program for supporting small and medium-sized businesses. At the same time, those entrepreneurs who implement priority projects for the region have more chances. This means that if your area requires a lot of tranches and you want to open a shovel factory, then your place in the queue for a soft loan and surety is closer to the cashier. In other cases, you will have to wait a little with the receipt of money.
Despite the difficult economic situation and the crisis, it is possible to get a loan to start your own business. This will take some time and effort, so be patient. In the end, only the one who does nothing does not receive.
If you have no money, then borrow. And never borrow small amounts. Borrow a lot at once, but always give back quickly. Aristotle Onassis, Greek billionaire
When drawing up a high-quality business plan for starting or expanding activities, replenishing and modernizing fixed assets, many entrepreneurs are looking for profitable ways to attract additional funds. Loans for small businesses outperform the offers of private investors with the speed of registration, minimum rates and a large selection of programs:
- Express loans - up to 200 - 300 thousand rubles to increase working capital. Individual entrepreneurs and legal entities engaged in trading activities can apply for a loan.
- Microcredit - up to 1.5 million rubles to replenish fixed and circulating assets. The preference is given to companies engaged in trade and production activities, providing services.
- Small loans - up to 5 million rubles. Representatives of small and medium-sized businesses can apply for the issue.
- Loans under the Agro + program - up to 1 million rubles. entrepreneurs specializing in the agricultural sector.
- Overdraft (expense in excess of the account balance) - up to 1.5 million rubles. to increase turnover. The program is designed for lending to legal entities.
- Credit lines - the amount is calculated on an individual basis, depending on the turnover of the account. Funds are provided only to legal entities.
- Credit cards - up to 100 thousand rubles. for small purchases and travel expenses. Loans are issued for individual entrepreneurs and legal entities of different spheres.
Depending on the choice of the program, the bank evaluates the documentation from 1 day to 2 months. Additional benefits are provided to customers who have a current or bank account.
Who are they lent to?
Within the framework of the programs of international financial organizations, the issuance of loans is not available to companies offering the population alcohol and tobacco products, gambling business, real estate or c / b. Banks make a negative decision when applying for a loan to create a statutory fund and repay current obligations.
They are wary of manufacturing companies. Owners of small manufacturing shops (shoemakers and tailors) can apply for a loan with a long business record, a wide range of raw material suppliers and a client base.
Loyal conditions are provided:
- Trade enterprises (to increase working capital) - shops, catering or beauty salons.
- Car carriers applying for a loan for the purchase of a vehicle.
- Agrarians (the issuance of borrowed funds is carried out within the framework of the "Agro +" program).
Banks do not lend money to start a business. More chances to get a loan to change activities or develop a new business line.
Lending objectives
Loans are provided to entrepreneurs for different purposes:
- To cover additional costs.
- For maintenance and repair of buildings, structures.
- Equipment modernization.
- To start a business.
Who falls under the category of borrowers?
A number of requirements are imposed on entrepreneurs who apply to a bank for a loan:
- Legal status - individual entrepreneur or legal entity, joint-stock company or individual with equity participation.
- Place of registration - preferential registration of the company and the implementation of activities on the territory of the bank.
- The period of doing business is from 6 -12 months. from the moment of registration.
- The maximum number of employees is up to 100 people.
- Confirmation of the absence of imposed arrests and prohibitions.
Business owners, as individuals, are also subject to a number of criteria:
- Russian citizenship.
- No delinquencies on previous loans.
- Registration on the territory of the location of the financial institution.
- The client must meet the status of an individual entrepreneur, or have ownership of the business.
- The age limit is from 21 to 60 years old.
- The presence of a landline phone.
Based on the choice of the program or the parameters of the loan, banks may impose additional conditions.
Overpayment amount
SME lending programs are characterized by minimal overpayment. Thus, the average overpayment ranges from 16 to 24% per annum. A number of companies set boundaries between 14.9% and 18.5%. There are also programs on the market with rates of 28% or more, which is typical for small banks.
Package of documents
Participants of the program for lending to individual entrepreneurs and SMEs without collateral and guarantors are invited to collect a standard package of documentation:
- Application for consideration. Served in the office or on the website of the company.
- Original or photocopy of your passport.
- Certificate of state registration (copy).
- For legal entities - a photocopy of the Articles of Association, extracts from shareholder registers, an order on the appointment of the chief accountant, minutes of shareholders' meetings, etc.
- For a registered business - a report on the movement of funds in the account.
The Bank reserves the right to demand additional securities:
- Constituent documentation for legal entities.
- Confirmation of the settlement of the client's relationship with the bodies that call citizens for military service.
- Confirmation of the costs associated with the acquisition of rights to a share in the property.
Loan size
The average loan size is 4.5 million rubles. Some companies are ready to issue a loan in the amount of 500 thousand to 1 million rubles, others up to 7 million rubles.
For how long to get a loan?
The average lending period for SMEs is 36 months. Less often, banks draw up contracts for 5-7 years, which is typical for large systemic organizations.
How to pay off the debt?
On the Russian financial market, there are more programs designed to repay a loan in an annuity way. Clients credit payments in equal installments according to the loan repayment schedule. A differentiated scheme is extremely rare in practice.
Bank selection
If you have accreditation in the bank, you should contact him, this will clarify the conditions and compare them with the proposals of other companies:
- VTB24 - "Negotiable" from 850,000 rubles, from 11.8%, up to 3 years. Loan granting commission - from 0.3%.
- Zenith - up to 30 million rubles, 13-14.5%, up to 2 years. No down payment required. A delay in repayment of the principal debt of up to 12 months is possible.
- Krayinvestbank - 3 programs are envisaged: for business development from 500,000 to 70,000,000 rubles. for up to 7 years at 13%, for a turnover at 13% or overdraft from 16%.
- Levoberezhny - from 150,000 to 3,000,000 at 15% up to 6 years (universal program "Business without Borders").
- Promtransbank - from 150,000, from 15 to 35% per annum, up to 5 years.
- Rosselkhozbank - from 1 million rubles, 13%, from 6 months.
- Center-Invest - from 300,000 rubles. at 12% per annum, up to 36 months.
- Energomashbank - overdraft from 300,000 rubles, from 17% per annum, up to 12 months.
Positive and negative characteristics
The pluses include:
High flexibility in setting rates and personal terms of service.
Receiving the agreed amount without collateral and guarantors.
Loyal conditions for regular customers.
Cons include:
- Informing the bank about doing business.
- Long-term collection of documentation.
- Small percentage of approval of applications for starting a business.
- Limitations in choosing a business direction.
Small Business Credit Assistance Fund
When applying for a loan at a bank, entrepreneurs are not always able to provide a collateral that covers possible risks. A reasonable solution would be to use the possibility of obtaining a surety from the FSKMB, which is equivalent to the registration of a pledge. Depending on the type of activity of the borrower, the Fund acts as a guarantor for a loan from 60 to 90% of the requested loan (up to 60% for wholesale and retail enterprises, travel agencies, up to 70% for transport and agricultural companies, etc.).
Loan processing time - from 3 to 60 months.
Fund partners:
- PJSC SB RF.
- PJSC Bank Levoberezhny.
- AKIB "Education".
- JSC "RSHB".
- PJSC Bank ZENIT.
- PJSC "VTB24".
- PJSC "Promsvyazbank".
- Banca Intesa JSC.
- SMP-Bank JSC.
- PJSC Bank FC Otkritie.
In search of the most favorable conditions for circulating lending to SMEs, many entrepreneurs will be interested in the conditions of Sberbank, in 2017 the company offers:
- Loan amount: from 10 million rubles up to 1 billion rubles
- Objectives: purchase of fixed assets, modernization and reconstruction of production lines, implementation of new projects and replenishment of working capital (in the areas of agriculture, food, electricity, gas and water, construction, transport and communications).
- Rates: from 9.6%.
- Terms of concessional funding: up to 3 years.
Loan processing is carried out in a number of stages:
- Familiarization with the terms of granting a loan, background counseling by an employee.
- Preparation of a documentation package.
- Submission of application and collected papers.
- Familiarization of the Foundation's employees with the place of business.
- Conclusion of a contract.
Transferred to the account of the entrepreneur.
When his own financial resources for business development are not enough, an entrepreneur is forced to look for borrowed funds in various financial institutions, starting from the most profitable offers, with conditions suitable for him.
At the moment, it is a widespread practice, but it is much easier for large firms or corporations to get a loan, but it is not so easy for individual entrepreneurs (IE). Firstly, banks and other credit organizations are less willing to work with such a category of clients, and secondly, the conditions for them are, as a rule, stricter, for the reason that when issuing a loan to individual entrepreneurs, credit institutions run more risks than issuing loans to large ones, well-known firms.
Of course, in most cases, one of the main conditions for a small business to obtain bank loans is the provision of collateral. The reason is simple: business is a risky business, and collateral is a good guarantee of the return of credit funds. However, not all loan products require collateral. A number of banks today offer several options for lending without collateral for individual entrepreneurs.
And despite the high percentage, strict requirements and the failure rate, entrepreneurs are still attracted to loans without collateral. Moreover, although banks speak about a large number of problem debts in this area, the credit limit is still being raised. Now, without collateral, you can borrow up to 30,000,000 rubles.
Where to get a loan without refusal, without certificates and without a guarantor in 2017? - TOP 10 banks
Here is a list of banking programs with the highest probability of approval of loan applications. Under these programs, you will be able to take out a loan without refusal, without certificates and guarantors. To obtain a loan, select a suitable program and fill out an online loan application.
Apply for a loan
1. - cash loan
- Sum: from 50,000 to 2,000,000 rubles.
- Term: from 1 to 5 years.
- Interest rate: from 13.99%
- Age: from 21 to 70 years old.
- Probability of approval: High.
- To obtain you will need:
- For salary card holders: passport, driver's license.
- Standard credit: passport, driver's license, 2-NDFL.
Apply for a loan
2.- loan with online solution
- Sum: up to 750,000 rubles.
- Term: up to 5 years.
- Interest rate: from 14.9%
- Age: from 21 to 65 years old.
- Probability of approval: High.
Apply for a loan
3. - online application for a cash loan
- Sum: from 25,000 to 1,000,000 rubles.
- Term: from 1 to 5 years.
- Interest rate: from 15%
- Age: from 21 to 76 years old.
- Probability of approval: High.
Apply for a loan
4. - cash loan
- Sum: up to 3,000,000 rubles.
- Term: from 6 months up to 5 years.
- Interest rate: from 14.9%
- Age: from 21 to 70 years old.
- Probability of approval: Average
Apply for a loan
5.- online loan application
- Sum: from 5,000 to 400,000 rubles.
- Term: from 5 to 60 months.
- Interest rate: under 12%
- Age: from 20 to 85 years old.
- Probability of approval: Average
Apply for a loan
6. - fill out the form in 5 minutes and get a credit card
- Sum: up to RUB 300,000
- Interest rate: 0.12% daily, interest-free period up to 55 days.
- Age: from 18 to 70 years old.
- Conditions: without inquiries and a visit to the bank.
- Probability of approval: High.
Apply for a loan
7. - for clients without overdue loans
- Sum: up to 1,300,000 rubles. no commission.
- Term: from 6 to 36 months.
- Interest rate: from 15.9%
- Age: from 23 to 65 years old.
- Probability of approval: Average
Apply for a loan
8. - express loan in cash or on a bank card
- Sum: up to RUB 500,000
- Term: from 2 to 5 years.
- Interest rate: from 15.9%
- Age: from 24 to 70 years old.
- Probability of approval: High.
Apply for a loan
9. - a loan without references from 15 minutes
- Sum: from 5,000 to 200,000 rubles.
- Term: up to 4 years.
- Interest rate: from 13%
- Age: from 21 to 75 years old.
- Probability of approval: Average
Apply for a loan
10.- fill out the online application in 10 minutes and get a solution right away
- Sum: from 50,000 to 2,000,000 rubles.
- Term: up to 5 years.
- Interest rate: from 14.5%
- Age: from 22 to 60 years old.
- Probability of approval: Average
- You will need a document confirming income: or a 2-NDFL certificate.
Small business loan up to 2,000,000 rubles in 24 hours
Today, in the financial services market there is a very interesting online service for lending to small businesses, this service is called "Stream". The essence of this service is that the loan is issued not by a bank or MFO, but by thousands of users of the Stream online service. For users, this is an alternative to investing, and for entrepreneurs, instant money without bank delays and difficulties.
Therefore, get a loan in this online service, much easier than a bank. You do not have to collect documents and certificates, you will not be required to collateral, you do not need to travel anywhere, a loan can be obtained online without leaving your home or without leaving your workplace.
The biggest advantage of this online loan service is its high probability of approval. Because banks demand collateral, ignore entire industries, and use outdated methods of valuing companies. The online service for issuing loans "Potok" has created a new method, thanks to which, creditworthy companies can get a loan quickly and without nerves!
Lending conditions for the Stream online service:
- Without collecting documents and without collateral online.
- The decision on the loan is made within 15 minutes.
- On average, it takes 24 hours from the moment of application to receive a loan.
- The maximum loan amount is 2,000,000 rubles.
- The interest rate on the loan is 2.5% for 6 months.
- The loan is issued for a period from 1 week to 6 months.
- You can take and repay a loan in 2 clicks.
A little about the Stream online lending service itself
Potok is an innovative online service established by Alfa Group and integrated with Alfa Bank. Alfa-Bank is a provider of data for evaluating small businesses and carries out settlements between participants in the "Stream".
The Stream online service was founded on February 29, 2016, and currently thousands of individuals lend to small businesses throughout Russia.
Loans are given to all small businesses involved in wholesale and retail trade, including car sales, construction, advertising, and even software development. There are no restrictions on the choice of a bank, the crediting company can keep a current account in any bank in Russia.
What is very important and convenient? - To apply for a loan, you do not need to collect a package of documents with many different certificates, and the whole process of applying for a loan is carried out online and most companies receive a loan within 24 hours after submitting an application.
Features of loans without collateral
In most cases, lenders, in order to guarantee the return of the money spent on the loan, ask to secure the loan with collateral - the property of the enterprise or the personal property of the entrepreneur himself, for example, real estate, land, vehicles, etc. But what if there is no collateral that could be offered to the lender for a loan? It is necessary to consider all possible offers and conditions for issuing loans to small businesses without collateral. Knowledge of banking products, as well as the requirements for them, will help you make the right decision and, if necessary, find a loan on the most favorable terms.
Loan funds are issued to individual entrepreneurs for various purposes - to expand the production base, introduce new technologies, open a new direction in business or develop an existing one. It should be noted that in most cases, the purpose of obtaining a loan is of great formal importance, but most often there is an inappropriate waste of credit funds, because after the loan is issued, no one controls its intended use. However, both in the case of a secured loan and an unsecured loan, upon receipt of it, the loan amount stipulated by the agreement is credited to the current account of the borrower.
When an entrepreneur takes out a secured loan, a credit institution insures its risks by:
- sureties (both third parties and business owners);
- property (the entrepreneur himself, or third parties).
And in the case of an unsecured loan, issuing a loan for a lender is associated with high risks of losing the issued funds, so the requirements for an entrepreneur who takes an unsecured loan are much higher, and the procedure is a little more complicated.
Pros and cons of loans without collateral
Comparing secured and unsecured types of loans, you can immediately highlight the following disadvantages of unsecured loans:
- high interest rates;
- fewer offers of loans without collateral;
- shorter maturity;
- a more thorough check of the borrower for compliance with the conditions for issuing a loan;
- limited maximum loan amount.
High interest rates compensate lenders for financial risks in those frequent cases when borrowed funds are not returned. The number of offers of such loans on the market for these services is a smaller part, for the simple reason that with secured loans, as a rule, there is less hassle and in case of non-repayment of the loan, the collateral object goes to the lender, later it is sold and thus covers the damage, or the same damage is compensated by the guarantor who secured the loan. In this case, credit institutions can afford to lower the interest rate, because it is not insurance against the loss of issued funds, but acts as a service fee for the loan.
Regarding a shorter repayment period, as well as a lower maximum amount usually provided for loans without collateral, then the rule described above works here - when issuing a secured loan, there are less risks, which means that you can offer a larger amount for a longer period.
As already mentioned, the verification of an entrepreneur taking a loan without collateral is more stringent, since in this case the borrower's previous credit history, his financial stability and other positive qualities are the only points on which a decision is made. In the case of the existing collateral, even, for example, not the most positive credit history of the borrower only slightly spoils the situation, because in any case, the entrepreneur guarantees a return of funds, in extreme cases, through his property or the property of the guarantor.
Nevertheless, a loan without collateral can be a profitable loan for small businesses, and in some cases, life-saving, if there are no other options for obtaining funds. In addition, despite the thorough verification of the borrower, a loan without collateral implies the simplicity of registration, which is not much different from obtaining a regular consumer loan. Therefore, the following advantages can be distinguished:
- lack of a pledge object;
- no costs for the assessment of collateral, insurance and transfer of property rights;
- saving time;
- free disposal of all property that does not act as a pledge;
- ease of design.
Conditions for granting a small business loan without collateral
In Russia, there are quite a few banks and other credit organizations that offer their own program for lending to individual entrepreneurs without conditions for securing a loan with collateral. Among which the largest are OJSC Sberbank of Russia, PJSC Promsvyazbank, AO UniCredit Bank, OJSC AKB Investtorgbank and LLC Promselkhozbank.
Let's find out what are the general approximate requirements of the banks listed above using the example of existing programs for issuing loans for individual entrepreneurs without collateral:
- the presence of a passport of a citizen of the Russian Federation;
- the presence of a residence permit or temporary registration;
- military ID, for men under 27 years old;
- Tax registration certificate;
- certificate of state registration as an individual entrepreneur;
- certificate of ownership or lease agreement for the premises in which the individual entrepreneur works;
- permits for certain types of activities, if any;
- a copy of the financial statements that were submitted and also accepted by the tax authority for the last reporting period;
- balance sheet and income statement for the last 3 years;
- statement on the movement of funds on the account for the last six months or a year;
- an order on the appointment of a chief accountant or other employee authorized to keep records and a copy of his passport;
- receipts for payment of taxes;
- doing business in the region where the creditor bank is located;
- the period of actual activity is from 24 to 36 months;
- the borrower's age is from 23 to 60 years;
- no bad credit history.
As for other banks and credit organizations, the main list of requirements is approximately the same for all, but credit managers of other organizations may put forward additional requirements, including the presence of a detailed business plan, in which the individual entrepreneur needs to state for what purposes the received loan funds will be used.
Based on these data, if you look at them carefully, it becomes clear that, despite the extensive list of requirements presented by the bank, they are not exclusive and do not imply much red tape. If desired, the required package of documents for obtaining a loan without collateral, for a small business entity, can be collected in one day, but the consideration and decision-making in the case of unsecured loans is not so fast, due to the above-described need to thoroughly check all submitted documents. For example, the website of PJSC Promsvyazbank states that a decision is made within 7 working days.
For small individual entrepreneurs, obtaining a loan without collateral is very often the only financing option, therefore, when deciding on applying for a loan, you need to carefully read the chosen institution, reviews about it and its conditions.
In addition, before visiting the manager of a credit institution, you need to carefully prepare the documents provided to him - to put the accounting department in order, draw up a high-quality business plan and consider possible answers to questions.
And you should understand that due to the high credit risks, the rates for unsecured loans are always higher than for ordinary loans.
Small business lending without collateral - options
Entrepreneurs who want to get a loan without collateral have the following options:
- Profitable offer... Today, a number of banks offer small businesses to take out a loan for any business purpose, moreover, without providing collateral.
- Microcredit (small loan)... If a businessman needs a small amount of money (about 1 million rubles) for the development of his business, also without providing property as collateral, he can take a microloan. Most of this lending is carried out by microfinance organizations (MFIs). At the same time, large banks also have microcredit programs, where the interest rate is much lower.
- Express loan for business... If an entrepreneur does not have collateral and urgently needs a relatively small amount of money, he can use the program of unsecured express loans. Express loan (urgent) differs from the consumer one in that it takes much less time to review the first application (literally a few hours)... As a result, the borrower often receives money on the day of contacting the bank. Of course, due to the lack of collateral, as well as the tight deadlines for considering the application, banks, as a rule, request a fairly solid package of documents to complete a loan agreement.
- Overdraft... If a small business owner needs a short-term loan, then he can turn to such a typical loan product as an overdraft to a checking account. You can also issue it without providing collateral in the bank where the business has a current account and there were turnovers on it. Overdraft is a form of loan in which a bank client is allowed to use more funds than he has in his current account. In other words, the company gets the opportunity to “go into the red” by the amount of the limit set by the bank. The limit, in turn, is calculated taking into account the average volume of cash inflows to the current account for three to six months (usually 30-50% of this amount).
What if you were denied a loan without collateral?
And for those individual entrepreneurs who do not have the opportunity to provide collateral, and failed to take out an unsecured loan, there is still an opportunity to get into the state program for providing guarantees for small businesses from the Credit Assistance Fund. It is a non-profit organization created to help develop small and medium-sized businesses. Today, the Fund cooperates with a large number of banks throughout the Russian Federation and provides loan security from 30 to 50% (depending on the scope of the enterprise) those individual entrepreneurs who fall under the terms of the Fund's program in the region, submit an application and go through the established procedure. As a rule, the procedure for assisting this Fund in issuing a loan to an individual entrepreneur consists of the following stages:
- Applying for a loan to a bank that cooperates with the Fund.
- Consideration of the application and making a positive decision on it.
- Transfer by the bank of the specified application and the attached documents to the Fund.
- Adoption of a positive decision by the Foundation.
- Signing of a tripartite surety agreement.
- Payment of remuneration to the Fund.
Brief commentary on the last 6th point - the amount of remuneration for the provided surety is relatively low and amounts to 1-2% of the amount for which the Fund is guaranteed for the borrower. This amount is paid once, upon signing a tripartite agreement. In addition, the costs of remuneration of the Fund can be reimbursed from the city budget in the amount of up to 90%. To familiarize yourself with the conditions and procedure for obtaining a guarantee from the Credit Assistance Fund in detail, enter the Credit Assistance Fund in the search engine for a specific region in which you live.
Concessional loans for business
To find out what kind of assistance to small business from the state to expect in 2018 (soft loans, tax preferences and other types of support), it is not at all necessary to search for information on various sites, to collect bit by bit on information and legal portals, from official sources. After all, you can turn to the source, where everything is collected in one place. The website portal was created to facilitate the search for information, to help arrange a loan or loan, to find out opinions and reviews about a particular organization, offered products.
What help should business representatives expect from the state in 2018
Let's consider the possible types of assistance that the government provides to individual entrepreneurs, as well as who can count on such support. Well, first of all, good news for legal entities. There are plans to revise the conditions for granting loans to business representatives. This means that the rate can be fixed in the range of 10-11 percent. It will also be possible to reinvest with a loan rate ranging from 6.5 to 11 percent.
Who can count on small business support
- Newly opened individual entrepreneurs
- Ecotourism representatives
- Manufacturing industry
- Handicraft industry
In 2018, preferential loans as a form of assistance to small businesses from the state can be obtained on simplified conditions, with accelerated processing. The government and banks are taking steps to meet business representatives, and are giving a helping hand.
Also, support for small businesses is carried out not only in the form of material support, loans on simplified terms. Business owners can count on various free services.
Support for individual entrepreneurs
Free assistance is expressed in the provision of various types of services, information support, etc.
- Free educational lectures, courses
- Consulting economists and lawyers
- Promotion of services and goods through fairs and exhibitions
- Provision of industrial areas, land plots
You can also get gratuitous help from the budget. For example, you decide to start your own business, but you do not have enough funds for the base capital. Do not rush to go to the bank for a loan, everything can be solved much easier.
What it takes to get loans for doing business
In such a situation, you can contact the employment exchange and get the required support.
- Register with an employment center as an unemployed person
- Conduct a detailed development of your own project, carefully scheduling the proposed activities
- Register an application for participation in the tender
If your business project is interesting and promising, you will receive irrevocable support. The only condition will be a detailed report on the use of all funds allocated to you.
In addition to concessional loans, assistance to small businesses from the state in 2018 can be expressed in property equivalent.
- Space for rent on favorable terms
- Sale of state property with favorable terms of the contract
- Objects created for business
Important! If you count on benefits from the state, without refusal, you should establish yourself as a promising owner of your own business, a law-abiding citizen. Do not hesitate to ask questions and consult on paperwork, tax compliance and other nuances.
The state also launched a grant program in 2018. In principle, getting this kind of help is not difficult.
Who can count on grants
In order for you to be provided with such support, you must draw up an application and transfer it to the appropriate authorities.
- Your business is over a year old
- You pay your fees regularly and your credit history is perfect
- You create conditions for attracting new employees
If you meet all of the above requirements. Then you will receive a grant from the state without any problems. However, before submitting an application, you must collect a complete package of documents. You should also take care of the certificate that you have not previously received grants.
If you did not get a grant, you can get a soft loan from the state to help small businesses in 2018. The rate on it will be only 5-6 percent.
Who can get a soft loan in 2018
If you want to take advantage of this kind of assistance, you should check if you meet the conditions under which such loans are issued.
- Activities in the field of innovation development
- Export production or import substitution
- Production of oil and gas equipment
The conditions for obtaining this type of credit are, in principle, quite simple. You need to prepare a complete package of documents required for the application. You can learn more about this from our consultants, because in some cases the set of papers may differ, albeit not significantly.
You submit an application with documents to your municipal or regional fund. It takes approximately three days for consideration, after which you will be given an answer.
In general, any business owner can hope to receive assistance from the state for small businesses in 2018, preferential lending. However, it should be borne in mind that the priorities for loans are arranged depending on the field of activity. There are also some limitations. There are categories of small businesses that may not qualify for loans with special conditions.
Who can not count on help from the state
- Businessmen on the verge of bankruptcy, or bankrupt
- In arrears on the payment of a preferential loan
- Having any kind of budgetary arrears