Loan for medium-sized businesses from scratch. Choosing a loan for small business development from scratch
Content
To organize your own business or expand an existing one, you need financial investments. What to do if your own funds are not enough? For most entrepreneurs, the answer is obvious - go to the bank and get a loan for business development under certain conditions. Is it so easy for a borrower to take out a loan, is there a real alternative to bank loans, and what conditions must be met in order for the money to be received? More on this below.
Small business lending
Representatives of small businesses include small enterprises without the formation of a legal entity, the total income of which, together with assets, for the past year does not exceed 400 million rubles, and the number of workers does not exceed 100 people. Individual entrepreneurs are another layer representing small businesses. To start their own business or its sustainable development, they do not always have enough working capital, so they have to find sources of financing.
Just a dozen years ago, the unstable situation in the economy allowed only a few to obtain much-needed funds, since investors were in no hurry to invest in small projects. Today, the picture has changed, and small businesses can count not only on private investors and foreign funds, but also confidently turn to domestic banks and even the state.
Bank loans to small businesses
It cannot be stated categorically that anyone can come to a banking institution and take out a loan for business development. The first thing you need to do before applying for a loan is to draw up a competent business plan, based on the calculations of which bankers will make a decision on issuing funds. Moreover, the answer will not always be positive; you may receive a refusal or the amount issued will be less than stated.
The lender will not take risks by investing money in a deliberately losing idea, since the main thing for him is the return of the invested funds, and even in an increased form. For the same reason, banks rarely offer investment loans, the essence of which is to invest money in business development. It's easier for them to borrow funds and get a margin on it.
State small business lending program
If things don’t work out with a financial institution, you have the opportunity to turn to the state and ask for money for your own business. True, you will have to come to terms with the fact that the amount issued will be small - depending on the region, it can range from 50 thousand to 1 million rubles. The rate on such microfinance loans is 10–12%, although they are issued for a shorter period, which, as a rule, does not exceed one year. The entrepreneur will have to provide a guarantee or pledge of property, the sale of which will help cover the debt.
How to get a loan to start a small business from scratch
According to available statistics, about 80% of small businesses cease to exist in the first year of their operation. It cannot be said that they all go bankrupt, because some of them are part of larger industries, joint-stock companies, and some themselves become medium-sized and then large businesses. In addition, many individual entrepreneurs use the so-called “gray scheme” for generating income, so banking institutions cannot see the real income of the enterprise, which could significantly increase the chances of receiving a loan.
It is not difficult to get a loan to develop your own business from a bank, however, for a positive answer, you will need to fulfill a number of conditions, since it is very important for a financial institution to obtain a guarantee of repayment of the borrowed funds. Don’t forget about the opportunity to start your own business through a franchising scheme. In this case, it will be easier to get a loan to purchase a franchise.
Requirements for the borrower
The borrower must meet a number of requirements. Since the business is only planned to be developed, it will not be possible to provide any evidence of its competitiveness and profitability. For this reason, the bank will check the future small business entity as an individual in order to understand how responsibly the person treats their obligations. Bankers will check the borrower’s credit history and send requests to the Insurance Fund and the Pension Fund. If a person was previously an employee, they can make a request to the company where he worked.
Business requirements
Banks do not impose any requirements for the new project as such. They are directly interested in the business plan, so its development must be taken extremely seriously. If you don’t have the skills, it is recommended to hire specially trained people or a company that will draw up a document, taking into account all the client’s wishes. An entrepreneur can easily find and buy a ready-made version of the plan, which spells out all the features of doing business in a particular region. If you plan to carry out licensed activities, for example, selling alcohol, you must present a license.
How to get a business development loan for an individual entrepreneur
For businessmen who want to get money to expand their own business, it is somewhat easier. This is due to the fact that they can document the presence of profit and even provide collateral in the form of their own property. For the bank this is one of the main components, and for the businessman it will bring additional bonuses in favor of a positive outcome of the situation. However, this result is only possible if the client is trustworthy and complies with all the conditions for conducting the business:
- pays wages;
- provides contributions to the Federal Tax Service (use the service for generating reports to the Federal Tax Service online);
- pays all taxes and fees on time; has a profit, etc.
Check out the service for.
For what purposes can you take out a loan for small business development?
As already reported above, the bank is not so important what the borrower is going to do. What is more important to him is whether he will make a profit to cover the debt. If the business is firmly on its feet and the entrepreneur has plans to expand it, you can apply for finance to purchase equipment, vehicles, machinery and even real estate (factoring, leasing, commercial mortgages, etc.). If you need to increase the amount of working capital, then you can also safely apply for a working loan for the development of a small business or take out an overdraft.
Unsecured
In the practice of Russian banks, there are loans that give an entrepreneur the opportunity to receive funds without providing collateral. However, it is worth saying that loans of this kind are issued extremely rarely, since a banking institution requires a certain guarantee. For this reason, to minimize your own risks, the interest rate on unsecured loans for business development is higher than standard offers.
Secured
Providing collateral increases the entrepreneur's chances of receiving a loan. The collateral can be movable and immovable property, a guarantee from individuals or legal entities, a deposit in the bank, etc. In this case, bankers are more willing to make a deal with an entrepreneur, since the sale of collateral in case of non-repayment of the debt will be able to cover the resulting debt.
Which banks give loans to small businesses?
A loan for business development can be obtained from many banks in Russia. Proposals are made by both major players in the banking market (Unicreditbank, Raiffeisenbank, etc.) and its smaller representatives (OTP-Bank, Rosenergobank, etc.). The table shows the five largest players:
|
Banking product |
Amount, rubles |
Duration, months |
Interest rate |
|
|
Sberbank |
100000–3000000 |
|||
|
Express overdraft |
||||
|
Rosselkhozbank |
Secured by the purchase of commercial real estate |
individually |
||
|
Secured by purchased machinery and/or equipment |
up to 85% of the cost of purchased machinery/equipment |
individually |
||
|
State support for small and medium-sized businesses |
5000000–1000000000 |
|||
|
Kommersant |
500000–5000000 |
|||
|
Revolving loan |
||||
|
Investment loan |
||||
|
Alfa Bank |
For any business purpose without collateral |
|||
|
Overdraft |
||||
|
Cars and special equipment for leasing |
individual |
|||
|
Credit Bank of Moscow |
For small and medium-sized businesses with bail |
individual |
||
|
For small and medium-sized under guarantee |
individual |
How to get a loan for a small business from a bank
Before going to the bank with a request for a loan for the development of a small business, you should carefully study all available offers and get advice from colleagues who have already taken out a loan for business development. In some cases, when it is not possible to provide collateral or guarantee, it may be more profitable to take a consumer loan in cash and use this money for your own business, because the interest rates on such loans can be significantly lower.
What documents are required for registration?
If a bank is selected, you need to collect a certain package of documents. Depending on the institution and the purpose of the business development loan, it can vary significantly. Bankers will definitely require a citizen’s passport and papers confirming the registration of the case. You will have to fill out an application form with all the necessary information. In addition, you will have to attach a business plan, a tax return, and indicate a current account, if you have one. It is possible that other documentation will have to be submitted at the review stage.
State lending to small businesses
Recently, the state has shown interest in small business representatives. Both in the capital and in the regions, you can become a participant in special programs through which you can receive start-up capital to develop your own business. For 2019, a program was adopted to expand state participation in promoting the development of entrepreneurship, reducing interest on loans depending on the level of inflation and the refinancing rate (key rate) of the Central Bank.
Microloans
In the West, the process of microcrediting small businesses by the state through financial institutions has been introduced everywhere. In Russia, this practice is very poorly developed, or rather, it is in its infancy. The advantage of a microloan compared to a bank loan is a lower interest rate and small requirements for the borrower. Funds are issued up to 3 million for a period of one to 5 years.
The state program applies to small businesses that were unable to borrow money. A distinctive feature of the loan is that the money is issued strictly for a specific project, which is closely monitored by the state. It will not be possible to take out a loan for the development of a small business and spend it in another direction - an inspection by the competent authorities can take place at any time.
Guarantee for a loan from an accredited bank
If a small business representative does not have the opportunity to secure collateral, he can take advantage of the unique opportunity of state assistance and apply for a state guarantee from the Entrepreneurship Support Fund. Its essence is that the bank issues a loan to an entrepreneur for business development under guarantees provided by the state. This service is not free, so the borrower will have to pay a certain percentage of the loaned amount.
This opportunity can only be taken advantage of by those entrepreneurs who are confident on their feet and have profit from running their own business. State guarantee is a popular and affordable service, so it is chosen even by those entrepreneurs who have something to offer as collateral, since the service is financially beneficial, because the borrower does not need to arrange collateral and insurance for the pledged property at his own expense.
Receiving a subsidy for business development
Entrepreneurs belonging to the category of business people whose businesses are successful and generate income have the right to know that they can count on receiving free assistance from the state for the development of their business. Regional entrepreneurship funds are responsible for issuing subsidies, so the specific volume of injections is determined in each region separately depending on the available budget. The maximum amount is limited to 10 million rubles. It can be spent at the discretion of the business owner: renting production premises, creating new jobs, etc.
Concessional lending to small businesses
Beginning entrepreneurs who have no debt to the state, are not on the verge of bankruptcy, make payments on time under existing contracts and repay interest according to the schedule, have the right to count on a lower annual interest rate or an extended period of using the loan under the preferential lending program. Obtaining a loan for business development is carried out through SMEs in branches of partner banks, among which are:
- Revival;
- GenBank;
- Interkommertsbank;
- Loko-Bank;
- Promsvyazbank;
- Universal Credit;
- Uralsib.
For successful accounting of individual entrepreneurs, use.
Video
Found an error in the text? Select it, press Ctrl + Enter and we will fix everything!Business loans in Moscow are issued for various purposes. There are special offers for ready-made businesses, for development, and for opening a new one. In most cases, they cooperate with applicants within the framework of targeted programs that require the provision of a report on the funds spent.
What kind of business loans do banks issue?
There are several varieties:
- Express. Provides the possibility of urgent delivery. Suitable for individual entrepreneurs, representatives of medium and small businesses. Features higher interest rates.
- For current activities. You can take out a business loan in Moscow to replenish working capital or purchase machinery and equipment. Provided in the form of a credit line or overdraft.
- Investment. Moscow banks are ready to issue it for the development and implementation of new technologies and improvement of automated systems.
- Commercial mortgage. The features of its production are practically no different from the traditional one. Partial payment at your own expense is required. Encumbrance required.
Conditions for obtaining business loans
It is more difficult to get a loan for a business from scratch in Moscow. Guarantee and security may be required. The following is taken into account:
- age of the company;
- profitability;
- business plan;
- reputation;
- credit history.
It is possible to obtain a loan for a director, founder, or take part in a government program. The latter are aimed at companies with no more than one hundred employees.
How to find a profitable loan for business in Moscow?
We offer the best loans for small businesses in Moscow. You can search based on terms, amounts and interest rates. After determining the best option, all that remains is to submit an application to obtain approval from several institutions.
Business development and expansion requires regular investment. The question of the need for financial investments sooner or later arises among both beginning entrepreneurs and successful businessmen. In such a financial situation, the question arises: “Where can I get a loan for an individual entrepreneur?”
And this article presents how banks where you can get an individual entrepreneur loan without guarantors or collateral. In order to collect for you all the best bank conditions in one place, we analyzed quite a lot of loan offers that provide loans for individual entrepreneurs in 2019.
Ways to get an individual entrepreneur loan
Bank lending is an effective and prompt solution to financial problems, a beneficial tool for the development of small and medium-sized businesses, and the ability to respond in a timely manner to emerging negative circumstances. Loans for individual entrepreneurs are available for targeted business development, replenishment of working capital, purchase of new equipment, and expansion of the production base. Almost every credit institution has loan offers, even for individual entrepreneurs with zero reporting (declaration).
Private entrepreneurs confirm their solvency on the basis of accounting documents, which indicate income from FCD; using declarations; income and expense journals; other accounting reports. In order to obtain a loan for an individual entrepreneur from scratch, it is necessary to draw up a promising business plan. It should reflect specific indicators for future periods, taking into account the specific nature of doing business in Russia and the real level of demand for specific services or goods.
When considering an application for a loan for entrepreneurs, it is important for the bank to understand for what purposes the loan money will be used, and from what funds it is planned to repay the debt. The bank’s credit manager will answer the question of how exactly to get an individual entrepreneur’s loan under the chosen program.
What loans can an individual entrepreneur take out?
For small and medium-sized businesses, banks offer loans in the following areas:
- Express - loans: designed for businessmen with limited time. A minimum package of documents is provided. The decision to approve the loan and issue it is made within an hour. The interest rate for such programs is much higher, the loan term is shorter.
- Consumer loan for individual entrepreneurs. This type of loan can be taken out by an individual entrepreneur as an individual. For a large amount, a wider package of documents is required. If you need a large amount, you should be prepared to provide loan collateral in the form of real estate, vehicles no older than 3 years, or capable and solvent guarantors.
- Target programs, including government: include loans for small businesses. This is a type of financing the activities of legal entities, when the Assistance Fund can act as a guarantor. Issued only for specific purposes. Designed for entrepreneurs engaged in promising business and already registered for more than three months.
- A number of banks provide Individual entrepreneur cash loan, revolving/non-revolving lines of credit and overdrafts.
TOP 6 profitable banks for an individual entrepreneur loan
Ratings of banks offering the most profitable loan products for individual entrepreneurs are formed from an assessment of general conditions, a list of required documents, interest rates, loan duration, and possible cooperation with starting individual entrepreneurs.
It is beneficial for individual entrepreneurs to take out a loan from the bank where the current account is opened. Loans are offered to regular customers on favorable terms. Before opening an individual entrepreneur account, it is recommended to monitor banks not only regarding favorable tariffs, settlement and cash services, but also from a lending point of view. Our blog specialists have already analyzed and compiled rating of the best banks for individual entrepreneurs .
In 2019, the best loan offers are from the Housing Finance Bank, OTP Bank, Renaissance Credit and Sovcombank. We invite you to familiarize yourself with the terms of individual entrepreneur lending programs for both individuals and specialized loan programs for individual entrepreneurs.
The best bank giving a loan to individual entrepreneurs without collateral or guarantors
OTP is one of the best banks that provide consumer loans to individual entrepreneurs without collateral or a guarantor. The undeniable advantage of this credit institution is the ability to submit an application online from the official website and receive a final decision in 15 minutes. OTP Bank offers profitable cash loans for both individuals and individual entrepreneurs.
Loan terms for people running their own business
- Loan amount from 15 thousand to 4 million rubles.
- The loan is issued for a period of 12 to 120 months.
- Interest rate - from 10.5% per annum.
- Providing security in the form of a guarantor or collateral is not required.
The only documents you need to submit are a passport of a citizen of the Russian Federation, a Unified State Register of Individual Entrepreneurs (USRIP) certificate, and an INN. The bank is ready to cooperate with beginning businessmen.
Cash loan for individual entrepreneurs from scratch on the day of application
Renaissance Credit is one of the few banks that provides consumer loans to individuals developing their business. We list the main advantages and possibilities of a cash loan for individual entrepreneurs in this bank:
- Credit limit - from 30 to 700 thousand rubles;
- Interest rates range from 10.9%;
- Duration of the loan agreement: from 24 to 60 months;
- To apply for a loan, it is enough to present a passport of a citizen of the Russian Federation and a second document of your choice;
- No collateral is required, but proof of title to the property will guarantee a reduced interest rate.
The application is sent from the bank's website. If approved, you must visit the office and submit a minimum package of documents. Private entrepreneurs only need to bring a certificate of state registration of individual entrepreneurs. A balance sheet is not required. You can also provide a title for a car or documents for an apartment as your solvency. (The deposit will not be used!). Offers from Renaissance Credit Bank can be taken advantage of by businessmen starting an individual entrepreneur business from scratch. The optimal rate and loyal conditions will allow you to quickly receive the required amount on the day of application without unnecessary paperwork.
Sovcombank - cash loan at low interest
Sovcombank offers consumer loans to all categories of citizens, including individual entrepreneurs.
- The limit is 1 million rubles for any purpose.
- Base interest rate from 12% per annum;
- The application can be submitted via the Internet, the loan is issued at the bank office.
- The loan is issued for a period of up to 60 months.
- Review of the application from one hour to three days.
Individual entrepreneurs have the opportunity to get a loan in a larger amount by providing real estate or a vehicle as collateral. There is a program “For Responsible Plus”. No documentation is required from private entrepreneurs. Therefore, a consumer loan from Sovcombank is suitable for individual entrepreneurs with zero reporting.
Attention! The bank approves loans to new customers only for persons over 35 years of age. If you have less, then it’s better to leave your application at another bank.
Loan "Trust" for business development from Sberbank
A loan for individual entrepreneurs is offered by the country's main lender, Sberbank. The Trust program will allow you to resolve current financial difficulties and implement plans in the future.
Business loan terms from Sberbank
- Type of loan - without collateral and for any needs.
- The loan is available to individual entrepreneurs whose annual revenue does not exceed 60 million rubles.
- When taking out a loan secured by a guarantee, a reduced interest rate applies.
- The base rate is 16.5% per annum.
- The maximum loan term is 36 months.
- Credit limit - up to 3 million rubles.
Sberbank requires documents for an individual entrepreneur's loan, such as a citizen's passport - an individual, a military ID if available, a Unified State Register of Individual Entrepreneurs certificate, a certificate from the Federal Tax Service on the registration of a private entrepreneur, the latest version of financial statements with the seal of the tax authority, tax payment receipts. Licenses, permits to operate, lease agreements (sublease) or certificates of ownership of non-residential premises may be required.
Bank providing a loan for individual entrepreneurs secured by an apartment from BZHF
Very often, entrepreneurs need a large sum of money to develop their business, to increase turnover or for other purposes related to business development. It is very difficult to take out a large loan without collateral, even if you collect certificates. And then the best option is a loan for an individual entrepreneur secured by an apartment.
The Housing Finance Bank is by far the most popular bank among individual entrepreneurs that provides loans secured by real estate. The issuance of the required amount of money to businessmen occurs without bureaucracy, unnecessary certificates and in the shortest possible time. Due to the fact that the apartment is collateral, the bank evaluates your credit history and your business more favorably. This gives a real opportunity to take out a loan for an individual entrepreneur without refusal.
Under what conditions can you take out a loan?
- The loan term is up to 20 years, and the rate is from 11%.
- Amount up to 8 million rubles (but not more than 70% of the market value of the apartment).
- If the apartment is owned by a spouse, then she can be indicated in the loan agreement as a mortgagor.
- Early repayment at any time without penalties or moratoriums.
- The apartment must be located in the cities where the bank operates: Krasnodar, Moscow, Nizhny Novgorod region, Novosibirsk, Omsk, Perm, St. Petersburg, Yekaterinburg, Kazan, Volgograd.
Business loan for individual entrepreneurs secured by real estate
In the last few years, P2B crowdlending projects have been actively developing all over the world, when individual investors lend to borrowers without the participation of credit institutions. In Russia today there are also such companies offering lending to small and medium-sized businesses on simpler and more understandable terms.
One of these companies is the investment and business financing agency “Money in Business”, which lends to individual entrepreneurs secured by real estate and without providing management, accounting and other financial statements.
The loan offer is inherently unique and cannot be compared with any other bank. If an entrepreneur urgently needs money, we recommend paying attention to this company.
Brief terms of the individual entrepreneur loan:
- The minimum amount is from 500 thousand rubles for a period of 2 years with the possibility of extension.
- Funds are issued strictly for targeted financing of your business.
- It is possible to provide commercial or residential real estate, as well as real estate of third parties, as collateral.
Thus, answering the question of where to get a loan for an individual entrepreneur and how to get it is not so difficult. If the terms of a specialized loan for a small business are difficult to meet, it is possible to take out a standard consumer loan in an amount acceptable for starting a business. I hope the review of the conditions of banks issuing loans to individual entrepreneurs was useful for you and you will find financing for your business from the proposed list.
ARTEGO Finance company offers effective financial services. In particular, assistance to small businesses in obtaining urgent cash loans.
A reliable partner is someone whom you can trust to solve even extremely complex problems. We have been working in the financial and credit sector for quite a long time, thanks to which we have acquired thorough knowledge in this area, experience in implementing large projects, and strong partnerships with large banks. We value our reputation and are proud of the trust of our clients. That is why business owners who are interested in receiving express business loans in cash come to us every day - for development, implementation of new projects or for other purposes.
How easy is it to get a business loan?
To become our client and get help in obtaining a loan, follow three simple steps:
- Leave a request on the website or by phone.
- Discuss with the company’s managers the parameters of collaboration, the required amount and loan term.
- Entrust us with all the hassle associated with paperwork and negotiations with the bank. And soon you will receive the required amount!
You can ask questions and clarify the terms of cooperation right today - by phone or through the feedback form on the website.
Today, entrepreneurs are given a great opportunity to take out a loan to develop a small business without having their own property or any other collateral. In private cases, funds for assistance to entrepreneurship can declare themselves as guarantors. In order not to waste hours searching for financial institutions that can provide loans without guarantors for small businesses, you can use the services of our website, which presents financial institutions that are guaranteed to provide preferential loans small businesses. Our website presents banking services that are offered by financial institutions in Moscow and other cities. The list of our offers allows you to see:
- what amount can be loaned;
- interest rate;
- documents required to obtain a loan;
- the age at which borrowers can receive a loan;
- time for consideration by the financial institution of the application.
What do we mean by favorable lending conditions?
Thanks to our portal, entrepreneurs can count on little support from the bank. They may be offered special conditions. Namely:- unsecured loan “Trust”;
- programs that do not require guarantors;
- the possibility of extending the period for repayment of the principal debt;
- the opportunity not to pay the entrance fee;
- the possibility of obtaining a loan under the terms of floating interest rates.