Lending is a promising business that is developing rapidly in our country. Increasingly, loans to legal entities are issued by organizations that operate in the likeness of banks. A loan for individual entrepreneurs can be both help and additional problems, the main thing is to calculate and weigh everything correctly.
Issuing a loan to a legal entity is always associated with the risk of non-repayment. Therefore, banks are reinsured with high interest or the conclusion of agreements with collateral. Less willingly, they agree to grant loans to individual entrepreneurs.
Loans may vary in duration and allocation of earmarked funds.
In banks, the most popular are:
Urgent loans separated by time frames. Term loans by time frame can be divided into: short-term, medium-term, long-term. This loan to individual entrepreneurs can be quite difficult. You need to go through a long credit history check and collect the necessary documents. It is also advisable to show the business plan of the enterprise. Often, targeted money is given out, if the bank has a clear goal, why you take a loan, your chances increase. If you provide a detailed business plan, attach to it agreements with companies on the provision of services to you, then the bank will have more reasons to give you a loan.
Lines of credit compiled to receive certain amounts under the contract for some time. Thus, the company can receive cash injections in advance of the agreed amounts within a year or more.
Overdraft loan common among both medium and small businesses. Overdraft is an increase in the amount of cash in the accounts. With this form of lending, you can spend more than it really is on the account. This loan is short-term and is issued for a short period. This type of lending helps many companies to get money for the purchase of raw materials or settlements with suppliers before making a profit from the sale of goods.
Business opening loan getting is very difficult. It takes at least a good idea and a business plan. In such cases, it is very rare that a legal entity has collateral. And the bank is very risky when issuing a loan. The Bank grants loans at a higher percentage, and also reduces the loan repayment period.
Business Development Credit very popular with businessmen. By issuing this loan, the bank focuses on the number of working capital and profit.
In almost all cases of lending, a bank needs guarantees. If you have property or goods in warehouses, you can easily get a loan. But the bank gives only 70% of the real value of collateral.
