Taking money from the bank is one of the first ideas that comes to mind when talking about start-up capital. In fact, breaking off relations with relatives and friends is not the best option to start a new and rich life (more on this in the article: “start-up capital: take money from relatives”).
But you can apply to the bank for a loan. Great idea!
The bank will give money for a completely understandable period at a completely understandable interest. Moreover, a loan officer or an online application on the bank’s website will calculate a repayment schedule, which will clearly state how much and when to pay.
There seemed to be no uncertainty. Here, the brother’s wife will never get stuck with her fur coat, and you don’t have to strain yourself with planning the return date.
However, the “take money from the bank” strategy has a downside:
— First, interest.
Everyone knows that a bank loan is a paid thing. And this means that if a loan is taken for 1 year at 20% per annum, then for each credit ruble you will have to pay at least 10 kopecks during the year (taking into account the repayment of the loan body during the year). And, as you know: you take someone else’s and for a while, but you give yours forever.
Secondly, 6 months.
It is this period that the company must exist from the moment of its registration in order to receive a loan from a bank. Such a restriction exists in almost every bank for each loan product. Why?
Yes, because banks themselves insure themselves, because their business is to issue loans and collect money back with interest. If a large proportion of loans issued are returned late or not returned at all, then the business will collapse.
A start-up business is the most risky borrower.
Whether he can repay the loan or not — this is still a grandmother in two … as they say. Therefore, loans are issued only to those who already have at least some history. And it will be possible to take money from the bank not earlier than 3-6 months after the start.
Thirdly, the loan must be repaid.
Yes Yes Yes! Took money from the bank — return it! And it is necessary not only for the bank, but also for you. Everything is very simple.
Over the years, banks have debugged various schemes for working with unscrupulous borrowers.
Let’s start with the fact that in the event of a delay in payment on a loan, you and your organization will be blacklisted, getting into which is fraught with the fact that in the future, when applying to other banks for a loan, you will be denied.
But this is only the beginning: then the unpleasant system of calls will turn on during the day, at night, in the evening, during working and non-working hours.
Imagine this situation:
You are sitting quietly at work in the office, and then your colleague (partner, employee) receives a call.
“Good afternoon, the manager of the credit department of Zelen Zadarom Bank worries you, your company has been overdue on the loan for more than 4 months, when will you repay?”.
However, the story does not end there. The bank, a few months after the release of the loan for delay, sues. The case includes the security service and bailiffs.
Finally, the bank may sell your debt to a collection agency whose business is to collect bad debts.
A reasonable question arises: what to do? Taking money from the bank is not such an infallible strategy.
Is it worth it to take out a loan? If it is, then in what case? What is the optimal loan amount? How can you save on interest? How to protect yourself from the risk of loan default?
You will find answers to these and other questions in the following articles.
Further we read — «seed capital: business partners».