Credits for small businesses and small business development
Lending is an importantinstruments of state policy for the development of small business. In the event that individual entrepreneurs need funds to develop business activities, they can apply to various funds, which are now created a lot, as well as banks for obtaining a loan. But it should be noted that this type of lending has some features.
First, we should pay attention to the fact that, as a rule, the rates for such loans are higher than the rates for customary loans, consumer loans.
Secondly, credits for IP are registered muchlonger and with a more careful attitude to the study of the documents presented by the applicant. This is explained by the fact that lending funds and banks include lending to small businesses for activities with an increased level of economic risks.
Thirdly, in order to obtain a loan, an individualthe entrepreneur will have to issue and submit to a credit institution a much larger package of documents than, for example, in the case of a consumer loan.
The amount of the loan amount that can becalculate individual entrepreneur, will be determined by each bank individually, and this depends on a number of circumstances, the main of which are:
- whether the applicant is on service in this bank;
- what is the applicant's overall credit history and, in particular, the history in this particular bank;
- for which project is a request for a loan.
In most banks, loans to entrepreneurs inThe maximum period for which a loan is granted is three years. It is important to know that there are several state programs in the country that provide preferential lending to small businesses for certain projects, but in this case only banks that are included in this program can lend.
Banks and funds provide several types and methods of lending to individual entrepreneurs.
Microcrediting provides for the application ofThe simplified scheme on which credits are given for IP. This scheme is a procedure for the provision of a limited amount on the basis of a loan agreement between the lending organization and the entrepreneur. In addition, within the microcredit procedure, other mechanisms can be used, among which the most popular today are overdraft credit, bank guarantee. A wide application in small business is acquired by leasing and factoring, allocation of funds for the purchase of transport, equipment and even replenishment of the volume of circulating resources. In some cases, loans for IP are provided for the purchase of real estate.
Deposits, as a type of lending, representis quite a profitable option for entrepreneurs, because unlike deposits to legal entities, there is the possibility of withdrawing the entire amount of the deposit earlier than the term. In addition, deposit loans for IP are easily manageable, including through electronic systems available through the Internet.
Foreign currency loans are also available, theirthe demand is related to the need to purchase goods abroad. To obtain such a loan, an entrepreneur must open a foreign exchange account and enter into an appropriate contract with the bank. The advantage of this loan for entrepreneurs is that you do not need to provide the bank with data about the project and the rationale for acquiring a currency. At the same time, the terms and amount of the currency you buy are not limited.
Thus, today banks and fundshave the opportunity to provide individual entrepreneurs with a sufficiently wide range of credit products that are able to ensure sustainable and effective development of small businesses.