How to quickly get a small loan or loan for your business?

Hello, I plan to create a small business with a friend. We have money to create and develop, but there is no certainty that they will be enough in full and that borrowed funds may be needed. Tell me, is it difficult to get a loan for your business and under what circumstances is it easier to get? Anton Chingarov, Samara.

Hello Anton! Many dream of starting their own business. But some are stopped by the lack of the necessary knowledge, experience, lack of initial capital, and, of course, self-doubt. The most motivated take a loan at the bank (We wrote about how to get a loan at the bank in a separate article).

It's no secret that in Japan and in Europe, the percentage of loans for small business development is about 40%.

In our country, the indicator of business loans is kept at the level 1 percent. Such a meager figure makes the possibility of a successful loan for the development of their own business minimal.

Credit institutions in Russia do not really trust budding entrepreneurs, as many of them have no practical experience. Banks are well aware that in the first months the budding businessman will most likely not have profit, or it will be minimal and will allow the entrepreneur to cover only current expenses. So, the credibility of such a client from the lender is in great doubt.

Getting a business loan is no easier than getting a loan to open it. But the bank will gladly give it out if the businessman has solid experience and if his business is developing. Success and profit during development will play a key role in this case. You can read more about how to get a loan for starting and developing a small business from scratch in the article here.

So, let us consider in more detail what parameters banks pay attention to when issuing a loan or a loan.

Parameter 1. Pledge and confirmation of solvency

For those who are determined to seriously engage in their own business, it is reasonable and logical to get a 2-NDFL certificate. This document will confirm that a person who wants to take money for a business has a source of income that will allow him to make loan payments on a monthly basis.

The second way to convince the lender is pledge. In this case, banks tend to soften and are more likely to give out loans.

However, the pitfall here is that the collateral will cover no more than 70-80% of the loan. In this case, it is much more profitable to sell an apartment and get 100% of its value. However, you can only go to the sale of housing if the loaned person has a place to live. Banks, however, prefer not to see cars and securities as collateral, but real estate. All the subtleties and details of the design of such a loan are described in the article - "How to get a loan secured by real estate."

Parameter 2. Guarantor

Another effective advantage when applying for a loan can be a surety. The guarantee, as a rule, involves people who do not have property to provide as collateral or another source of income. If there are no guarantors, we recommend that you familiarize yourself with the material - “How to get a loan without inquiries and guarantors without refusal”.

Option 3. Business Plan

This is the only document for a novice businessman. On its basis, a new entrepreneur will have to prove to the bank that he will do business. So, in the process of preparing a business plan, you should carefully think through everything, give a competent assessment of all possible risks and prove the profitability of the business.

Parameter 4. KI

When applying for a loan for a bank, the customer’s credit history is very important. Lenders, as a rule, very meticulously study it and try to find out if the applicant in the past has any delays or arrears in payments. If CI is spoiled, we advise you to read our publication - "How to get a loan with bad credit history."

Parameter 5. Personal Savings

The seriousness of the intentions of the bank will be indicated by the fact that the client has the opportunity to invest some of his own funds in addition to the borrowed ones. It will be quite good if the share is at least 25 percent. Lenders sympathize and trust these borrowers more.

Parameter 6. Appearance and education

The way the client is dressed also impresses the bankers. So, if there is no decent suit for visiting the bank, then you can borrow it from someone. The working specialty of the applicant and his education are also considered a guarantee of solvency, because the presence of a profession and education is an indicator that the client knows exactly what he will invest the funds in.

Output

If the bank fails, the main task for the novice businessman is not to despair, to believe in himself and his future business. It must be remembered that many world-famous businessmen who have started a business many times have gone bankrupt, but they have gathered and started all over again. So, refusal is not a reason to panic and put an end to your dream. It is best to calmly deal with the cause of the failure and draw the appropriate conclusions.

We also recommend that you familiarize yourself with our new publication - “How to get a loan for private entrepreneurs without collateral and guarantors”.

In conclusion, we recommend that you also watch the video "How to get a loan for opening and developing a business":