Starting your own business is not easy. It is necessary to solve a lot of economic issues – determine the profitability of future activities, find outlets, find potential customers; To clarify the organizational aspects – to purchase or rent the premises and necessary equipment, to hire personnel, etc. Without a scrupulous analysis of the financial side of the work is also indispensable.
This is where the difficulties begin, because not all start-ups have the necessary funds to cover all the initial costs, since they are very large. The state is trying to support a small business. What features do we have in our country in lending to startups?
To start your own business, beginning entrepreneurs are primarily looking for the necessary starting capital among friends and relatives.
This is a very reliable and profitable way to raise funds, because you can use them with minimal interest or even without them, without having to make out a lot of papers, and the loan period in most cases has no limits.
But few can boast of wealthy friends or relatives who can lend $ 30-50 thousand. Hence, this option is not available to everyone.
Another way to find the funds necessary to run a stagnation is to contact a specialized center that supports small businesses.
Such organizations often receive large bank loans and can provide the right amount in debt. Such centers are available in many cities. They have the opportunity to independently choose candidates for funding on the basis of serious criteria, the main one of which is the existence of a clear business plan with a convincing justification for the profitability of the project.
Quite often, loans are issued to companies that plan to produce, trade or provide services, but the interest rate for such a loan is slightly higher than that of a bank.
In our country there is an organization called “Support of Russia”, which credits start-ups. It is an alliance of entrepreneurs who in every way support small and medium-sized businesses with the assistance of the state. This organization provides loans only for prospective projects and projects with high profitability.
The size of the loan can reach 70% of the amount needed for a startup. For the selection of candidates for a loan, a contest is held, the participants of which provide a detailed business plan and all the calculations that are made, which confirm the profitability of the future enterprise. The statistics are that, out of 50 candidates, the loan will receive only 1-2 most profitable projects. That’s what support for small business really looks like.
Bank loan for start-up, as a rule, entrepreneurs consider as the least attractive option to receive money for the start of operations.
The reason is not only in high interest rates, but mainly in the complexity and duration of obtaining such a loan. Financial institutions are very reluctant to lend to young, unformed businessmen, since the risk of non-return of issued money is very high. Small and medium-sized businesses, which have been operating for 3-6 months, have a good chance of obtaining a loan from the bank.
However, it is quite possible to get money from a financial institution to open a business. It will also require a detailed business plan, as well as a money-back guarantee. This can be a pledge or guarantee of a surety. It is very effective to provide real estate as collateral. In this case, you can count on a more loyal attitude of banks and a larger loan amount.
In this case, consideration of the request and execution of the necessary documents is substantially reduced and is a maximum of 7 days. In the usual case, the procedure lasts for a month. The position of financial institutions is understandable – they are in every way trying to protect themselves from the non-return of money, since the risk is high. That is why new projects are credited with higher interest rates than entrepreneurs of small and medium-sized businesses.
Another option to get the bank’s financial support for a startup is a surety of a solid and highly profitable company, which in case of a failure of the enterprise will return the lent to the financial institution. Participation of the guarantor in obtaining a bank loan is an integral element of a positive decision in the matter of lending a new project.
This also affects the final amount received from the bank. The entrepreneur himself can be a surety, but for this he must already have a successful and profitable business.
Making a loan in a bank has its own subtleties and nuances that affect the final decision of its employees. When a loan is issued for a stratap, the number of important points increases. In the application there is a graph in which the entrepreneur must enter the amount that he intends to invest in the case. However, it is not necessary to fill it out.