The benefits of credit for large and small companies. Small business loan. When will the bank refuse?

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The very first is the question of the purpose of lending, where it will go. This may be replenishment of working capital, investment in something new (building, equipment), expansion of an existing business. In general, replenishment of working capital is in demand. We'll talk about him.

It is immediately clear that if a loan is needed, then there are problems with working capital. Otherwise, why do you need money, if everything is fine anyway? That is, there are some problems in business planning, process control, staff motivation, asset turnover, cost control, labor productivity, etc. Credit acts as a painkiller that temporarily dampens the difficulties of the enterprise. Understanding this is very important. The receipt of credit funds to the account temporarily stops the problems. This is somewhat similar to the CUE programs from the US Federal Reserve: the crisis is delayed in time, the difficulties in the global economy are multiplying, and the problems themselves are not being solved

I'm not saying that this is present in every business. Everyone is different. Everything is based on my observation of business in Russia. Especially small and medium.

For example, I will give my experience from the 2008 crisis. We are now 17 years old. In the early 2000s, they began to actively lend, expand their activities, and increase their turnover. One loan was paid off, two were taken. Efficiency gradually decreased. This was evident from the profitability chart of the business. In 2007, he began to take an active interest in business education. Attended several excellent trainings. Read books on Lean Manufacturing. I downloaded audio and video trainings from the Internet, since it is free (from a small business there are few opportunities to allocate large funds for training): I listened and watched thousands of hours. As a result, at the end of 2007, we changed the company's strategy, developed our own personnel motivation system, and introduced a system of responsibility. The approach to pricing, work with suppliers has changed, we switched to a different type of client. Why all this?

In 2008, the crisis hit. In autumn. Competitors got huge problems with collecting receivables. In our case, it was minimal: at the end of 2007, we refused customers who paid poorly. Banks have practically ceased to give new loans, rates have risen. Where to get money? We began to work with the turnover, take a more reasonable approach to purchases, and optimize the product line. A lot has been done. Family business, all three practically lived at work. As a result, in 2008-2010 the amount of loans was actively reduced. Less new ones. In 2011 completely extinguished!

In this crisis, the availability of working capital helps. We take prepayment, due to which it has discounts. We keep volumes, suppliers increase discounts. Prepayment is a 3-6% advantage over competitors. Virtually no loans (there is a small one for the construction of a new warehouse of 1000 square meters, at 8% per annum from the scarlet business support fund) gives a 1-3% advantage. These percentages are equal to our profitability. Thus, without competent work on positive changes in previous years, we could end up with no profit in 2015. Efficiency allows you to have prices significantly lower than those of competitors. Interest on a loan is always an expense. Our competitors have them, but we don't.

This example would like to show that loans are not always good. Sometimes they temporarily stop problems that are multiplying like a snowball. You need to be smart about lending. Enterprises need to borrow, but the money must go to development. The most important thing is to improve the quality of business processes.

The main problem of both individuals and organizations is the lack of own funds. This is especially true for small and medium-sized businesses at the initial stage of development.

Bank loan products come to the rescue, providing both direct financing of the client and guaranteeing his obligations to improve relationships with counterparties. This article will help you understand the variety of loans.

A bank loan is one of the forms of financial assistance to organizations and individuals, which is provided on the basis of an assessment of the client's solvency and on a paid basis (that is, when interest is charged for the use of funds).

Types of bank loans

Loans can be divided according to several different criteria into groups.

According to the intended purpose and form of provision to individuals

Consumer loans for individuals - loans for the purchase of any goods or services of daily demand. They are provided by a one-time issue for up to 5-10 years, depending on the lending program and the conditions of a particular bank.

A feature of such loans is the lack of reporting for the bank on the direction of the use of funds. Money can even be used to repay previously taken loans (the main thing is to do this not by transferring from account to account, but by withdrawing cash; otherwise, this fact can be used to worsen credit history). Banks compensate for their risks with higher interest rates.

mortgage loan It is provided not only for the purchase of residential property, but also for repair, construction, acquisition of commercial real estate and other needs.

Both the purchased real estate and the client's own can be used as collateral.

Mortgages are available only to individuals. For organizations for the purpose of acquiring real estate, investment loans are used.

Investment loans– loans that are provided for the purchase/reconstruction/construction of fixed assets of the enterprise. Also, loans for a period of more than 5 years, which are provided for the implementation of a specific project and are used to pay off all expenses associated with it, can be considered investment loans.

Credit cards are opened exclusively to individuals and represent a credit line with the possibility of receiving tranches without the consent of the bank by paying for services and goods from a bank card.

Given the lack of lender control over the use of funds, credit card rates are often much higher than the rates for one-time loans.

Overdraft and contract loan. Such types of financing are issued to both individuals and legal entities on the basis of a study of the volume of turnover on current accounts.

Both types of financing represent the provision of funds, the amount of which exceeds the account balance (that is, if an overdraft loan is activated, the bank provides the opportunity to go “minus”). The funds that are then credited to the account are automatically debited to repay the loan.

Leasing agreement can be concluded if the client is interested in acquiring a car or equipment for rent. Banks often act as intermediaries between leasing companies that own leasing objects and the client.

Upon receipt of an application for leasing, the bank considers the possibility of acquiring equipment or a vehicle from a leasing company. Then, after registration of the purchase and sale, the bank gives the client this object on a long-term lease on the terms of payment of lease payments.

If, after the expiration of the leasing agreement, the client wants to acquire the property, he pays the bank the residual value of the object minus the lease payments.

Leasing is convenient for individuals who often change cars, or companies that do not have the funds for a one-time purchase of equipment.

Timing of funding

According to the terms of financing, bank loans are divided into

short-term (up to 1 year);
medium-term (from 1 to 3 years);
long-term (over 3 years).

Investment loans are provided for the period of project implementation. Negotiable - most often for a period of up to 5 years (if lending is made under the programs of the EBRD, IFC or other targeted programs, the period can be extended up to 10 years in agreement with the financing organization).

By type of collateral

Types of collateral that guarantees the return of a loan:

Guarantee(in the case of an LLC, it is necessary to provide guarantees from all founders of the LLC (business owners); when lending to an individual entrepreneur - a guarantee from an entrepreneur as an individual; when lending to individuals - any solvent persons).
Pledge of real estate(the most liquid collateral, allowing you to reduce the interest rate by 1-2 percentage points).
Pledge of shares in the authorized capital. Issued at face value. Shares must be paid in cash in full.
Pledge of claims(relevant for factoring) - the possibility of transferring receivables to pay off debt under a loan agreement.
Pledge of shares, securities.
Pledge of goods in circulation. Most relevant for commercial enterprises. Companies should count on additional expenses for checking the pledged property by survey companies.

Any deposit is required for insurance. The insurance company is selected from the list accredited by the bank.

By delivery methods

According to the methods of granting loans are divided into:

one-time;
credit lines.

One-time loans are issued at a time to the current account of the borrower.

Lines of credit can be renewable(lines with a debt limit) and non-renewable(loans with an issue limit).

For the use of the line, an additional commission for the unused limit (reservation of funds) in the amount of up to 2% per annum may be charged. When receiving a one-time loan, a commission is charged from the amount of the issue.

Documentary financing

Types of documentary financing:

Warranties (with and without revocation)

Guarantees are a method of ensuring the fulfillment of the obligations of the principal (borrower) to other counterparties (suppliers).

If the principal's obligations are not fulfilled on time, the bank pays the counterparty the amount of funds specified in the guarantee, followed by the collection of funds, taking into account the bank's commission from the borrower.

Guarantees are one of the cheapest ways to confirm solvency to a partner (about 2-3% per annum).

If the guarantee is opened (the bank issued funds in cash), the amount of interest can reach 30-50% per annum.

Letters of credit (irrevocable and revocable)

A letter of credit is a bank guarantee to make a payment in favor of the supplier in the absence of funds from the buyer.

The funding scheme is roughly as follows:

opening a letter of credit in a bank of Russia;
confirmation of a letter of credit in a foreign bank;
submission of documents from a foreign supplier with an application for opening a letter of credit (after delivery);
disbursement of financing by a foreign bank;
debiting funds from a correspondent account of a Russian bank;
return of funds by the borrower to a Russian bank.

Letters of credit are very common in export and import transactions. For its issuance, confirmation of a foreign bank is required, and the cost of borrowed funds is the sum of the foreign bank's rate for the provided financing and the margin of the Russian lender.

What type of bank lending is more profitable to use for business

For small and medium-sized businesses, the most profitable in terms of interest overpayment and ease of receipt:

guarantees (when purchasing in large quantities, no long-term relationship with the supplier; constant incoming cash flow) as a safety net and to reduce the likelihood of penalties from the supplier;
factoring (especially for trading companies), which allows you to reduce the duration of cash gaps and maintain relationships with counterparties even with a lack of cash on hand and in accounts;
revolving credit lines. This type of lending is especially beneficial with the constant need to replenish the current account in small volumes. Such a line will allow you to have the possibility of permanent financing, however, unlike one-time loans, it will not force you to overpay for funds that are not currently used. In addition, unlike overdraft, rates on credit lines are more democratic.

Hello, dear Readers of the site "site"! Each person spends a certain amount of money on their own needs. It often happens that he goes beyond his budget and a person urgently needs money. Sometimes it becomes possible to purchase the right thing (for example: real estate) at a good price, again this person is urgently needed in order not to miss a profitable opportunity in his life. This is where credits and loans come in. Let's take a look at why loans are needed.

They are both beneficial and harmful. Not every person has an understanding of how to use a loan correctly due to a lack of financial literacy. Not every borrower will be able to identify good and bad credit, and what is the difference between them. Why this happens, let's figure it out together later in this article.

The benefits of loans

The benefit of loans is that they can urgently solve a person's problem, providing an opportunity to pay money for a bargain. Loans are useful for people who do not know how to collect and accumulate funds for the purchase of expensive things - a refrigerator, TV, car and real estate.

Loans are often operated in household appliances stores, car dealerships, real estate agencies. With the help of a loan, the consumer instantly receives the required thing or service, and pays for its cost later.

Harm of loans

The main harm of a loan for the Slavic population is the ability to expand your personal credit limit in a serviced bank or credit company. Having once taken a loan and repaid it on time, or a credit institution expands the credit limit, providing a larger amount next time. In most cases, people will definitely take advantage of this opportunity, getting into debt to a bank or lender.

As the saying goes, “What is good for a Russian is death for a German!”. The essence of this saying clearly shows the essence of the credit system in Russia and the CIS, in comparison with Europe.

In foreign countries, they take loans from banks to buy real estate and pay low interest on loans. Overpaying for the entire time of using the loan no more than 30%, in case of taking a loan for 20 years. That's why all Americans pay off real estate loans, because each of them has the opportunity to buy the house they dream of.

But in Russia and in the CIS countries, having taken a loan for 20 years, you will have to pay 300% for the time you use the loan! The bank has the right to change the terms of the loan agreement unilaterally, which is written in the agreement itself in small print, among dozens of clauses and conditions of the agreement.

That is why loans are harmful for the Slavic population. In Russia, the minimum loan interest is from 20-30% per annum, and in foreign countries up to 3%. The difference is palpable.

A smart approach to using loans

Loans should be used when there is an urgent need for them. If you urgently need a washing machine, but there is not enough money, you should think about it - you can be patient or borrow from friends. When buying household appliances, you will have to overpay its cost by 30% in a year.

Conclusion

In summing up, it should be noted that due to the lack of financial literacy, average citizens have an erroneous idea about loans, especially consumer loans. In this connection, borrowers overpay 2-3 times the cost of purchases purchased under a long-term loan.

It should be understood that a loan is good when the purchased purchase for the loan funds covers all payments on the loan and there is still a little left. Buying an apartment, dividing it into several studios and renting them out can serve as an example.

Learn to save, increase personal capital using bank deposits and other solutions for increasing personal capital.

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Small business loans are available from many banks. Although the conditions are usually selected individually, there are general data for all such loans, regardless of the bank. In this article, I will tell you what loans are for small and medium-sized businesses, when you need to take them, and when you should refuse, and what conditions you can get by contacting a lender.

Small business loan: good or bad?

A small business loan can be a life saver or a killer, depending on the company's stage of development and monthly turnover. It is important to understand the reality of paying debts on time. In this case, a business plan is good, but it is not a panacea. Personally, I have seen many aspiring entrepreneurs who borrowed money from the bank for a new project, and then found themselves in a deplorable state.

Here's some good advice for you: take out business loans only if you have an excellent order that will fully cover your costs of securing a loan. Although, this does not mean, but you should not take it to open a new company. Of course, you can and should take it if you do not have enough own capital. But you need to calculate everything in detail.

Many business books say that you should never take loans to start your own business. We need to look for a philanthropist who is ready to give funds for development at a certain percentage of the profits. But, again, I know many businessmen who took out a loan for 1-2 million rubles, paid it off, and their business project is now generating excellent income.

Where is the best place to get a business loan?

As you understand, no one obliges you to take loans in that bank,
where you have a current account 9 or you plan to open one). It is enough to study the terms of lending in various banks to understand the list of the best applicants. However, I want to write now those banks where you should not take a loan:

Sberbank.
VTB.
Post Bank.

As you can see, these are banks with a large share of state capital. You should not contact them not because the conditions there are bad. On the contrary, they are quite attractive. Simply, the very process of issuing money on credit can take a long time due to a highly developed bureaucracy.

Today, good conditions for business representatives are offered:

Bank opening.
Gazprombank.
Raiffeisenbank.
Alfa Bank.
Bin Bank.
Bank Tinkoff.

I suggest you make your own choice in favor of one of the potential creditors. And below I will tell you what you need to pay attention to when choosing a bank. Based on these data, it will be easier for you to get the required amount on the most favorable terms.

What to look for when choosing a lender

When you are going to take a loan for business development, you need to pay attention to several components, namely:

bank reliability.
Maximum amount.
Possibility of receiving a tranche in several installments.
Required documents.
Application processing speed.
Interest rate.
The need for collateral and what is accepted as collateral.

Based on these parameters, it is necessary to choose one or the other. It should be noted that all loans to legal entities require collateral and insurance. Collateral refers to a pledge. This may be production facilities for operating companies or residential or commercial real estate for companies for the development of which a loan is being issued.

Conditions for issuing a loan for business development

Terms of issuance differ, depending on the bank. However, here are the averages:

The maximum loan amount is up to 10 million rubles.
Loan term up to 5 years.
Interest rate from 12% per annum.
Possibility to get a loan without collateral. If the amount is large enough, or the product provides for mandatory collateral, then you must pledge property, the value of which will be 100% -150% higher than the loan amount.

There are several types of loans. I propose to consider them in more detail below.

Cash loan for business representatives

Many companies operate without a current account due to the peculiarities of doing business. Also, cash is needed in case of registration of a new organization. The client will need to pay various expenses in cash. In this case, it makes sense to issue a cash loan to a bank card.

Money must go to the card, as organizations are required to account for every penny spent. So, you can withdraw money from an ATM, and then provide an invoice, acts and fiscal receipts. But it would be much better to pay by card in a non-cash way, if possible.

I want to note that cash loans are usually relevant for individual entrepreneurs and small companies that operate in the retail market. If we are talking about wholesale organizations, then it is more profitable to issue a loan with the transfer of funds to a current account. There are also overdrafts. More details about this are written below.

Line of credit or lump sum loan

A credit line or overdraft is a very convenient type of loan for those who may need money at any time. Typically, this type of loan does not exceed 2 million rubles. You can use the funds after providing the necessary documents for the implementation of the tranche. In this case it is:

Requisites for transfer.
Agreement (if any).
Check.
Invoice, certificate of completion or consignment note (if any).
Other documents that the bank may require.

As for the one-time transfer of funds, it is carried out to the settlement account of the organization. Depending on the loan program, funds can be used for any purpose or for specific purposes stipulated by the agreement.

By the way, if we are talking about leasing, that is, the purchase of equipment or machinery for the operation of the company, then this equipment should be provided as collateral for the entire loan period. It must also be insured against damage, breakage and other force majeure circumstances.

Debt repayment terms

The terms of repayment are similar to repayment.
That is, you need to make payments according to the repayment schedule. It is worth noting that if the money was transferred to the current account, then it is from it that you need to make payment. In the purpose of the payment, indicate “on account of debt repayment”, you can also indicate the number of the contract.

When the debt is paid off, you must collect the mortgages from the bank and pay them off. If real estate was provided as collateral, then the encumbrance is removed in Rosreestr.

I hope this article has been very helpful. If you have any questions, then ask them in the comments. I will try to answer them. As for the choice of a bank, pay attention to the one where the settlement and cash services take place. There is a high probability of receiving preferential rates if your company is already serviced by this bank.

Very few people in our country can build a business without financial injections from outside. After all, even the most primitive business without investment requires at least some investment. Basically, in order to stand firmly on your feet, you need a solid start-up capital.

Pros and cons of a business loan

What to do in the event that it is not there, is it really a dream to have your own business, will it remain a dream? There is a way out - these are credit programs.

Benefits of a business development loan

To be honest, I don’t understand why take a loan for a furniture set or TV, and end up paying twice or three times more for it, if you can earn the required amount in just a few months, and even get a discount. But, being engaged in entrepreneurial activity, I myself borrowed money at interest, I saw how others did it, and how it allowed to revive the business. For example, many small entrepreneurs take out a loan for a business on the eve of the New Year.

The owner of a grocery store takes a loan in November to buy sweets (who doesn’t know - they start to rise in price from December and the closer to the holidays, the more expensive they are), buys a large batch (the more wholesale, the greater the discount) and makes good money on it. Another thing is that this is an experienced entrepreneur who can predict his income, because he has been trading in this product for more than a year.

Lending to small and medium businesses

Now almost every bank has a couple of credit programs for entrepreneurs. Therefore, if you decide to take a loan - do not rush! First, collect information and, with a calculator in hand, calculate which program is best for you. Just keep in mind that, firstly, you yourself may not be suitable for the bank - a short period of activity, there is nothing to pledge, etc. Secondly, there are programs for specific costs, for example, for the development of innovative technologies, for the agricultural sector, for the purchase of machinery or equipment, etc.

Another good example. The owner of the sawmill buys KAMAZ. Some of the money he had was set aside, some he borrowed from friends, some he got from the sale of his car, the rest was given by the bank. Now he does not have to hire trucks from outside, he quickly repaid his debts to his acquaintances and almost paid off the bank.

In general, if a loan is economically justified, if all the pros and cons of lending are calculated, then it makes it possible to reach a new level, turn your business into a more profitable and technologically advanced one. After all, usually, entrepreneurs turn to banks when they want to reorganize production, expand it, change premises or hire workers.

Cons of a business development loan

The main disadvantage is reflected in the proverb "you take someone else's - you give your own." Money is usually all invested in a business, and getting some amount out of there is quite difficult (including morally). In addition, as I wrote above, it’s not so easy to give a loan for business development to everyone or they give it at extortionate interest, because this is not lending to the population. For an industrial enterprise, the minimum period for obtaining a loan is six months, and for a service sector enterprise, three months. You will also have to provide a voluminous package of documents. However, different banks require a different set of documents, but they all want to see quarterly reports, and if they show that income is zero or the company is incurring losses, then the chances of receiving money from a credit institution will be scanty. And of course, the money will have to be paid in the agreed amount and on time, otherwise there will be penalties, sanctions and other problems.