Getting a loan from a bank is easy. It is much more difficult to choose the right product and bank that is right for you to fulfill your goals.
To date, most banks offer very similar lending products for small businesses:
- unsecured loan,
- loans for replenishment of working capital,
- loans for the purchase of vehicles, equipment, real estate
Beginning entrepreneurs need to be aware that not a single bank will give money for a project or business that has not yet started. Therefore, it is problematic to take a loan to open a business that was “born” just yesterday.
Moreover, the bank requires that entrepreneurial activity at the time of consideration of the loan application has already been carried out for at least 6 months. Some banks set more stringent conditions: successful business for more than 12 or even 18 months.
Therefore, the only way to get a loan to open a business is to issue it to an individual.
From the entire product line of bank loans for business purposes, it is possible to take one of two possible options:
- consumer credit without collateral,
- consumer credit guaranteed by individuals
In the first option, the interest rate on the loan (as of January 2015) will be in the range of 21-37% per annum. When a guarantee is issued, the interest rate will be 1-2% lower than in the case without collateral.
What determines the size of the loan rate?
Run-up from the lowest rate to the highest 16 p.p.? Several factors:
- First, are you a bank customer? If, for example, you have a salary card or open a current account in this bank, then the attitude will be different. Therefore, the conclusion is simple — it is better to take all services in one place. If you open a current account in one bank, then it is easier for you to get loans in the same bank,
- Secondly, for how long do you take a loan? The longer the loan term, the greater the risk for the bank. Therefore, for longer-term loans, higher rates are usually set,
- thirdly, can you confirm that you are a reliable borrower? If, for example, you confirm that, according to the 2-NDFL certificate from the place of work, the average monthly income for the previous 6 months was $ 1 million, then the loan rate will be lower than for borrowers with lower income
So, the bank gives the most profitable loans: to regular customers for a short period of time, with a good credit history and high reliability. The guarantee of other individuals will be an additional plus.
If your business has already “knocked” 6 months, then a loan can already be issued to an organization or individual entrepreneur.
In this case, you will also most likely have to take an unsecured loan. The rate on such a loan will already be lower than for an individual, but still higher than the rates at which “experienced” entrepreneurs are credited. The interest rate will range from 20% to 28%, with 28% more likely.