Business loans or SME crediting – Borrowers need to consider

In order to open a new business, financial annexes are required. Many entrepreneurs turn to banks for this. They offer various programs for starting their business. The registration process is quite long and you have to collect a lot of papers for this. Small and medium business loans are the best choice if you don’t have your own financial investments. for clarification


Reception conditions

loan conditions

Loan processing is similar in many organizations. Lending to small and medium-sized companies is subject to the following conditions:

  1. The company must be legally registered so that it has all the documents.
  2. The banks must present the company’s business plan. In the interview, he has to talk about his vision of business development.
  3. Bank specialists calculate their stability calculations. Therefore, you need to provide the necessary information, reports and forecasts.
  4. Lending to small and medium-sized businesses is done through the presence of real estate in the property.
  5. The reliability of the customer is checked. If the loan is issued on the IP, the borrower is checked as an individual. The credit history should be positive.
  6. The presence of guarantors and co-borrowers increases the chance that the loan application will be approved.
  7. Insurance is considered a mandatory service in many banks.

The application can only be approved under such conditions. If you make a positive decision, the standard registration process begins.


Types of loan products

business loan

Lending to small and medium-sized companies is divided into the following types:

  • aim
  • untargeted

Target credits are used for specific purposes, which is required by the contract. For example for the purchase of building materials. Once payment has been made to the counterparty, the expenditure is confirmed on the basis of supporting documents. These can be copies of contracts or shipping documents.

Unrestricted loans are issued for any purpose. Once received, there is an obligation to make stable payments and the customer does not have to report any expenses. Interest rates on unmarked loans are usually higher than the target loans.


The programs

money loans

Each loan program is small and medium-sized. Business has its own design features. They can be found at the bank or with the help of an advisor. The programs of the following banks are now offered:

  • Agree Bank The product has the name “Business Start”. You can get loans without collateral, but you need guarantor and the first installment. The rate is 17 to 18% and the amount is between 100 thousand dollars and 3 million euros.
  • Roseline Bank spending up to 40 million dollars for a maximum of 5 years. The rate is 12-16.5%. You must pay a one-time commission and pledge the property of the company.
  • Cross Capital Bank. The institute offers various programs for companies: development, targeted lending, leasing, factoring. Prices start at 15% and the amount is up to 30 million dollars.
  • YesSave bank. Loans are granted up to 3 years. The maximum is 6 million dollars at 15%. The bank does not require a security deposit. In return for the application, 2% of the loan cost must be paid.


The procedure for registration in the Agree Bank

The procedure for registration in the BestWill Savings Bank

First, you need to get in touch with lending small, medium business. Many people in our country turn to Agree Bank. Then you have to register as a PI with the tax. It is important to familiarize yourself with franchise programs that are partners with Agree Bank. You have to choose the right franchise.

According to the program, it is necessary to create a business plan: create a marketing plan, designate a place for the office and solve other problems. Then you need to collect documents for the registration of the loan: passport, TIN, IP certificate, business plan. An application will be submitted to them. You should prepare the amount (30% for the first payment). After a positive decision, an agreement is made. Agree Bank usually approves applications if the customer has chosen a partner franchise.


Work of funds

business loans

Many entrepreneurs apply to the fund for small and medium-sized companies. They guarantee the granting of loans to start up a business. The entrepreneur must apply for a loan from the bank and inform him that he wants to support the state organization.

The bank then reviews the application taking into account all the details. If the decision is positive, a tripartite agreement is reached. A small percentage is often used to support small and medium-sized businesses. Many banks work according to this scheme, but not all.


Recommendations for borrowers

Upon completion of the transaction, you should be familiar with the contract, which has continued to open in disputes. It is necessary to immediately ask questions to a specialist. If the company is profitable, it is advisable to pay the loan early, as most of the interest is included in the first few months of payment.

Borrowers need to consider the following nuances:

  1. Such loans are spent big enough. Interest. If it is possible to do without them, it is better not to grant such loans. If you still don’t, you should carefully follow the loan processing procedure.
  2. In order for the bank’s decision to be positive, you must create a clear business plan. From there it will come immediately It is clear whether funds are needed and how profits are distributed.
  3. Business reputation of a company owner also plays an important role. Therefore, accounting documents must be presented to increase the chances of getting a loan. All papers must be spelled correctly.
  4. The bank must present a business plan that shows all the subtleties of the business organization. If it is promising, the application is usually approved.

Loans to small and medium-sized companies are a major risk for banks. If the company goes bankrupt, the financial institution can lose money. Therefore, it is usually necessary to provide documents on the availability of real estate as well as guarantees and co-borrowers. Only if the requirements are fully met is there a chance to approve a business development loan.