Small business loans without collateral. Loans
Hello! In this article, we will talk about lending to small and medium-sized businesses.
Today you will learn:
- What types of business loans exist;
- What documents need to be collected for their registration;
- What are the risks for businesses when obtaining loans.
For start-up entrepreneurs, lending is often the only option to get a large amount of funds for. This issue remains relevant for those who represent small and medium-sized businesses who need equipment, raw materials or business expansion.
Why are loans for business from scratch reluctantly issued?
The practice of issuing loans for businesses from scratch in the Russian Federation is small. In Western countries, lending of this type is more developed, the number of loans issued as a percentage is about 35%. In our country, this percentage ranges from 1.5 to 2.5%.
Why did such a situation arise? First of all, because starting a business is associated with great risks both for the entrepreneur himself and for creditors, and no one wants to lose their money.
In addition to the considered factor, the fact that the borrower does not have a credit history also affects the decision on lending. Also, a lot of young companies are closed, not even having time to prove themselves in business. Of course, lenders are wary of lending to such borrowers.
Which banks can get a business loan
In this part, we will consider those banking organizations that are ready to cooperate with entrepreneurs. We will also look at the terms of the loan.
Business loan at Sberbank
On the official website of the bank, a whole section is dedicated to small businesses. The bank offers several key business products.
This list includes refinancing, lending for the purchase of equipment and machinery, without secured loans for any purpose and so on. The bank also developed a program to stimulate lending to small and medium-sized businesses.
As an example, consider a loan to replenish working capital. Credit "Business - Turnover» can be obtained under the following conditions: the maximum loan term is 4 years, the interest rate is from 11.8% per annum, minimum amount to receive - 150 thousand rubles.
This loan is provided to individual entrepreneurs and small businesses whose annual revenue does not exceed 400 million rubles. The official website also provides a complete list of documents that are necessary to obtain a loan. After the bank analyzes the financial and economic part of your business, a decision will be made on issuing a loan.
Business loans at Alfa-Bank
Now Alfa-Bank provides the Potok service, where entrepreneurs can get a loan for a business without collateral, collecting documents and online. You can find it on the official website of the project. Favorable conditions!
Also, for small businesses and individual entrepreneurs, the bank provides a so-called “spare wallet” in the form of an overdraft.
The terms of provision are as follows: an interest rate of 15 to 18% per annum, if you have not yet been a client of Alfa-Bank, you can count on an amount from 500,000 to 6 million rubles, but if you have cooperated with the bank before, maximum amount the loan will amount to 10 million rubles.
Also, for opening a limit, the bank takes a commission in the amount of 1% of the limit amount, but not less than 10 thousand rubles.
For medium-sized businesses, express lending and lending of the classical type are available. There are offers for business development loans, a loan secured by property rights and other offers.
As far as credit terms and interest rates are concerned, everything is calculated in individually, taking into account financial opportunities client and their needs.
Business loan from scratch from Rosselkhozbank
The bank's official website contains sections dedicated to small and micro businesses, as well as medium and large ones. Looking at proposals for entrepreneurs, one can see, for example, lending for seasonal work, lending in order to fulfill government contracts.
For larger companies, loans are provided for current purposes, to finance foreign trade operations, and so on. An application for a loan can be filled out online; communication with a specialist at the bank is also provided by the type of callback.
This bank is also involved in state program to support small and medium businesses.
Business loan at VTB
As in other credit institutions, the official website of the bank has a special section for business. Several credit programs specifically for small businesses: express, negotiable and investment lending programs.
In addition, loans are offered for business development, loans for the purchase of offices, warehouses and retail space, targeted loan with deferred repayment up to six months and a number of others.
The maximum lending terms for some loans are up to 10 years, interest rates are different - 13.5% (for the Business Mortgage loan), 11.8% for the Investment loan, and 11.8% for the Revolving loan and etc.
You can fill out an application on the website, a consultation with a bank specialist is also available.
The bank offers several types of business loans. Namely: overdraft, loans for the purchase of equipment produced in the Republic of Belarus, leasing, tender lending and other types.
The application is available on the official website, funds can be provided to small and medium-sized businesses, and loans are also available for individual entrepreneurs and large companies.
Tinkoff business
The list of documentation may include:
- or EGRIP;
- OGRN;
- Tax return for a certain reporting period
After all the documents have been submitted and the bank has made a decision on lending, you will be scheduled a meeting, during which it will be signed loan agreement and an account opening agreement for your business.
It should be noted that the bank is really focused on small and medium-sized businesses.
What are the pros and risks of starting a business with a loan
The advantages and disadvantages of borrowing funds for running and developing a business will be discussed further.
Advantages:
- financial issues are resolved quickly;
- business can be expanded at any time;
- with timely repayment of the loan, you can get benefits for other bank services;
- lending can reduce the tax base.
Disadvantages:
- the existence of an overpayment;
- wasting time looking for a suitable banking organization;
- you need to draw up a lot of documents;
- there are age restrictions for borrowers;
- property for collateral is valued lower than its market value.
The main danger lies in the fact that it is impossible to calculate the financial position of your company for several years ahead. Today, business is booming, repaying borrowed funds is not difficult, and in a year the situation may change radically. Especially in conditions economic instability in the country as a whole.
This should be remembered and kept in mind before concluding a loan agreement.
Business lending rules
The rules for granting a loan are structured in such a way that credit risks have been minimized. Lending is always a risk for both potential borrower as well as for the lender. The risk borne by the borrower is, first of all, the inability to repay the loan and interest on time, which can lead to.
The risk of the lender is associated primarily with the terms of the loan. Whether the loan is long-term or short-term, this directly affects the levels of risk.
To minimize risks, lenders, before agreeing on a loan application, carry out the following activities:
- They carefully study the borrower, his credit history (if the loan is not issued for the first time). Conduct an analysis of the economic and financial position the borrower;
- They study the collateral offered by the borrower, internal and external sources, through which the loan can be repaid;
- Analyze potential risks and ways to eliminate them.
Most banking organizations have developed special rules for lending to small and medium-sized businesses. These rules fix how to correctly assess the solvency of the borrower, how to develop his psychological portrait, how to reduce risks, and so on.
Securing a business loan
Loans can be obtained in several ways:
- Provide a deposit;
- Ensure the availability of guarantors;
- Provide a written commitment.
If the loan is secured by collateral, then any property of the borrower passes for the period of use loan funds to the lender. This pledge can be realized by the creditor if the funds belonging to him are not returned on time.
But if the borrower is declared bankrupt, the claims of other creditors cannot apply to this pledge.
As collateral can be: property, securities, real estate, any goods.
When a written obligation acts as collateral for a loan, then most often it is a bill of exchange. Whoever owns the bill has every right to demand a refund Money from the person who issued the bill.
As for loan guarantors, they are necessary when the borrower's income level is clearly insufficient to obtain the required amount.
Business Loan Classification
There are several types of business loans. In addition, every year banking organizations offer more and more services for those who do business. The main thing is to use them correctly.
Venture lending.
It is usually used if business is planned in the field related to scientific technology. Such loans are made for a long period and under high interest. But in this case, no one will simply give any guarantees.
The risk here is maximum, since the investments made may simply not pay off, because projects related to science are not initially successful.
Overdraft.
This is a loan that an entrepreneur can use if he needs additional funds for a short period of time. A banking organization lends to an entrepreneur if he does not have money. This is done to pay bills.
Its difference from a conventional loan is that all the money that will be credited to the borrower's account will be directed to repayment.
Commodity lending.
The scheme is simple: the borrower is provided with the equipment that is necessary for the full-fledged business.
Universal lending.
This type is distinguished by democratic conditions, which means it is most popular with entrepreneurs. The funds received can be spent on any activity that brings profit.
Commercial mortgage.
There is no need to explain much here. After all, inventory and equipment need to be stored somewhere, this is quite logical. The pledge in this case is that. You will not make payments - the lender will put the property up for auction.
Investment loan.
Pretty entertaining financial instrument. The bank gives you money not only for development, but also for increasing production capacity. Such a loan is approved only after a thorough check, which will show that you can pay it off.
You will be required for a loan , in which you need to justify that by making an investment in the amount of 100,000 rubles, you can get 2 million rubles of profit.
Factoring.
– Financing of a specific type.
Let's explain with an example: you borrow a tractor from a salon that sells agricultural machinery. And then you go to the bank for it to redeem your debt. Otherwise, it is called debt assignment.
Leasing.
What is leasing, you can. In short, this is, or real estate, which implies a subsequent redemption.
Example: you rent a lathe from the bank, pay monthly rent payments, at the same time you buy the machine in the property.
Reverse lending.
In other words, a loan for current activities. Money in this case is issued to acquire fixed assets or replenish existing ones. Fixed assets are assets that are used in the course of business, but not consumed.
Refinancing.
It is used to close other loan obligations, as well as to optimize conditions. For example: it is much more profitable to buy a machine at 4% than at 24%.
What documents do you need to provide
To get a business loan, you have to collect required package documentation. All documents that confirm the solvency of the entrepreneur must be provided.
List of documentation in different banks may differ slightly, but in general it is the following:
- Application for a loan, which indicates the amount of the loan, its purpose, contains a description of the collateral, as well as the loan term;
- Constituent documents of the company in the form of copies;
- Loss and profit reporting;
It should be noted that in all documents that the bank will request, the information must be relevant and relevant to reality. All certificates, certificates must be valid.
If you want to receive investment loan Submit your business plan to the bank.
Banking organizations working with small and medium-sized businesses carefully and rigorously approach the verification of the documentation provided. Pledges are also under strict control. If the certificate says that the company has 100 new tractors on its balance sheet, your task is to make sure that the loan officer sees them. And all 100.
But now we will pay special attention to credit history. Everyone knows that it is stored in the Credit Bureau for a long time. Therefore, it takes a long time to talk about how delays in payments affect the ability to receive new loan not worth it. Even if the debt is repaid, it is impossible to hide the information that it was at all.
Flawless credit histories should be with everyone who takes part in the transaction: the guarantors (if any), the entrepreneur himself, the owner of the LLC or an individual entrepreneur.
If an entrepreneur is only planning, it is easier for him to get a loan as an individual. This method is not ideal, since a loan for a large amount can be obtained only by providing expensive property (for example, an apartment) as collateral to the bank.
With the money received, you can buy a ready-made business or a franchise. If large sum funds are not needed, you can get by with consumer lending.
The volume of loans issued to small businesses in 2016
According to the Central bank of the Russian Federation, in 2016, loans were issued to small and medium-sized businesses in the amount of 4,691,331 billion rubles.
First you need to choose the most suitable for you credit organization. But it is best to try to use the lending service in the bank in which the entrepreneur has a current account. In this case, it is quite possible to get a reduced interest rate and higher credit limit.
There is also the possibility of obtaining preferential loans, funds for which the state allocates.
The participants of such a program can be:
- Entrepreneurs who are just starting their business;
- Those who carry out their activities in the field of ecological tourism;
- Entrepreneurs who are engaged in any kind of production and so on.
This list is not exhaustive, we have given only the most common areas of activity.
The next step is to take profitable loan will search for a guarantor. If you don't need it, great, but it definitely won't be superfluous.
It also does not hurt to decide how you want to get a loan: in cash or to an account or card.
At the same time, any entrepreneur must remember: if he cannot fulfill his obligations under the loan, he will be responsible for them not only with all the property of the company, but also personal.
What to look out for when choosing a loan
Small and medium business in the Russian Federation is supported by the state. That is why special loan offers for entrepreneurs are being developed. In particular, those that imply a deferred payment.
But everyone is well aware that completely free cheese is only in a mousetrap. Therefore, below are a few simple recommendations, following which will help to avoid misunderstandings and problems when concluding a loan agreement.
- Analyze information on lending conditions in different banks. Conditions can really differ, as well as interest rates, and the differences can be significant. Therefore, do not be lazy to compare.
- Make payments according to the schedule. Never delay making payments, but paying more than the schedule is also not always profitable. In any case, the bank writes off only the amount of the monthly payment, the rest of the money simply lies in your account.
- Read the contract carefully. Focus on the following points: banking organization the right to change the terms of the agreement unilaterally (increase the% rate), whether there are restrictions on repaying the loan ahead of time, how the bank collects the debt on the loan (if any).
- Remember: the bank is not charitable foundation, everything that you have taken will have to be paid back with interest, and it does not matter whether you are individual, or a big businessman.
Business without credit
In this part of the article, we will talk about where to get money to create a business and at the same time avoid credit obligations.
Option 1. Use the money that you have accumulated yourself.
By the way, the most banal of the existing ones. It is clear that in this case you need to come up with, as well as some of this money, but in general, the method is not the worst.
Option 2. Borrow from friends or family.
If there are people who are ready to help with money, you can use this, but there is a high risk of spoiling relations with them if you suddenly fail to give everything on time.
Option 3. Find an investor.
They are also called. They can be one person or several. All that is required of you is to provide a business plan and prove that your idea will be profitable in the future.
Option 4. Get a grant.
To do this, you must already be either . In addition, the conditions for obtaining are different in different regions of the country. Another difficulty is the passage of a competitive selection to receive this type of support.
Option 5. Use crowdfunding.
In the case of money for business, they collect from citizens, and the amount can be any, even 50 rubles. Usually, the collection takes place through special sites, where anyone can declare a collection and anyone has the right to deposit a certain amount of money.
In the Russian Federation, such platforms operate. Most of all, this option is suitable for those whose business has a pronounced social orientation, or is associated with art, music, and so on. Also on such sites, projects related to the production and sale of original goods are successful.
Option 6. Apply for a subsidy.
The downside is that the subsidy program is not valid in all regions of the country. Therefore, its availability must be clarified at your place of residence. And in order to get it, you need to provide a justification and a business plan, which is defended before the commission.
Option 7. Find a business partner who can invest his own funds in the common cause.
As a rule, if cooperation is just beginning, people divide all the profits received into equal halves. Although, if desired, the business can be divided.
All the options that we have considered have a right to exist. Moreover, there are entrepreneurs who have built a successful business without attracting credit funds. For example, Sergei Galitsky, director of the Magnit network. He began his career with work in the office work department of one of the banks in Krasnodar. As a result, his fortune today is 4 billion dollars.
How justified is lending when opening and developing a business
This question is certainly interesting. Although it can hardly be answered unambiguously. It is clear that if you understand little about economics and doing business, taking a loan is almost suicidal. You will simply make a big and long-term problem, the solution of which will be delayed for more than one year.
If it is possible to use other options for raising funds for the business, in addition to a loan, it is better to use them.
On the other hand, there are situations when loans really help to take a business to another level, and sometimes just save it. This applies more to a business that is already functioning and brings a certain profit. Due borrowed money you can cover the debts that have arisen, increase production capacity, upgrade equipment, purchase an office or warehouse space.
A number of experts believe that you can take a loan only to expand your business, but not to open it. That is, if you see that the business has room to grow and develop, then you can take a loan, in other cases you should think twice before applying to a bank for a loan.
Conclusion
Lending to small and medium-sized businesses is a financial instrument that can quite breathe life into new project. But you need to understand that we receive other people's money as a loan, and we will have to give our hard-earned money, also with interest.
Therefore, before deciding on a loan, you need to carefully weigh the pros and cons, but it is better to contact specialists who can calculate all the risks and advise how to avoid them.
Today, entrepreneurs are given a great opportunity to take out a loan for the development of a small business, without having their own property and any other security. In particular cases, entrepreneurship assistance funds can declare themselves as guarantors. In order not to spend hours looking 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 allocate soft loans small business. On our website are presented Banking services offered by financial institutions in Moscow and other cities. The list of our offers allows you to see:
- how much can be borrowed;
- interest rate;
- documents required for obtaining a loan;
- the age at which borrowers can receive a loan;
- the time of consideration by the financial structure of the application.
What is meant by favorable credit conditions?
Entrepreneurs thanks to our portal will be able to count on a small amount of bank support. They may be offered special conditions. Namely:- unsecured loan "Trust";
- programs that do not require guarantors;
- the possibility of extending the term of payment of the principal debt;
- the possibility of not paying the entrance fee;
- the possibility of obtaining a loan under the conditions of floating interest rates.
What are the criteria for quick grants for business expansion?
Before applying for a profitable loan, the borrower will need to select a bank, indicate the amount of the loan, indicate the term for using credit money and the conditions for obtaining money (secured, without collateral, leasing, without a guarantor).What is a loan calculator and why is it needed?
On our website, borrowers are given the opportunity to calculate the available amount of the monthly payment, specifying which credit schedule the loan will be repaid. The loan is calculated on the page " Credit calculator» according to its desired size. For this purpose, the borrower will need to indicate the loan amount, interest rate, loan term, type of payment (annuity, differentiated), one-time commission and the month in which payments begin. Thanks to the calculator, the borrower will be able to figure out what loan price he can afford.How to get a loan online?
An application for issuing money for an enterprise can be submitted to a financial institution through our website. Near each bank there is a blue button. By clicking on it, the entrepreneur will find out which profitable offer provided when receiving a loan for the development of a small business. After submitting an online application, after 2 hours, the applicant will receive a call credit consultant and will give detailed advice on obtaining money in debt. He will also explain the conditions for obtaining profitable loans. Are you interested in preferential program with government support? Looking for a cash loan? Our site is happy to help in solving your financial difficulties.ARTEGO Finance offers effective Financial services. In particular, assistance to small businesses in obtaining urgent cash loans.
A reliable partner is someone you can trust to solve even the most complex tasks. We have been working in the financial and credit sector for a long time, thanks to which we managed to acquire thorough knowledge in this area, experience in implementing large projects, strong partnerships with big banks. We value our reputation and are proud of the trust of our customers. That is why we are approached every day by business owners who are interested in obtaining express loans for business in cash - 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 joint work, the required amount and term of the loan.
- Entrust us with all the hassle associated with paperwork and negotiating with the bank. And soon - get the right amount!
You can ask questions and clarify the terms of cooperation right today - by phone or through the feedback form on the website.