The bank gives an individual technical loan. Business loans from scratch: which bank to get? Loans for small businesses - conditions and requirements
Hello, dear readers of the business magazine “site”! In this article we will tell you how to get a loan for an individual entrepreneur to open and develop a business, including without collateral and guarantors in cash/non-cash.
After reading this publication from beginning to end, you will learn:
- What types of loans do banks offer for individual entrepreneurs?
- What stages will have to be overcome to take out an individual entrepreneur loan;
- Where can you get a loan for entrepreneurs without collateral or a guarantor?
At the end of the article, we traditionally provide answers to frequently asked questions.
The article will be useful not only to entrepreneurs themselves, but also to those who are planning to become one. It is not necessary to already have plans for applying for a loan, but it will be useful to study the publication and be prepared in this matter. So start reading now - will definitely come in handy in the future!
Read about how to get a loan for individual entrepreneurs and where you can get a loan for an individual entrepreneur without collateral and a guarantor in cash.
Individual entrepreneurs (IP) in Russia have a special status:
- Firstly, they are ordinary individuals, therefore they have their rights and obligations;
- Secondly, Individual entrepreneurs act as business owners and conduct entrepreneurial activities to generate income.
In different situations, such a dual status can benefit or create difficulties for an entrepreneur.
On the one side , when applying for a loan, individual entrepreneurs, as individuals, can count on the appropriate programs. However , checking the solvency of entrepreneurs is carried out more strictly. Banks often refuse to apply to individual entrepreneurs who have failed to prove that their business is reliable.
It turns out that issuing loans to individual entrepreneurs is a difficult and unpredictable lending area. It is difficult to figure out why creditors immediately refuse some entrepreneurs, while others are given loans for large sums without much effort.
Not everyone understands what banks’ decisions on loan applications submitted by individual entrepreneurs are based on. This is why it is important to explore what ways there are to increase the likelihood positive solutions .
One of the main requirements of banks for individual entrepreneurs in the process of considering an application is duration of activity . Some lenders require that the length of service be at least a year, others have enough and several months. One requirement remains unchanged - the business must generate stable profits.
If a citizen has recently been employed or was listed as unemployed, he will almost certainly be denied a loan for business purposes. In such situations it is much easier to obtain non-targeted loan for individuals.
However, it is worth considering, that the size of the non-targeted loan and the period for which it is issued will be minimal. Moreover, in this case, the entrepreneur is deprived of the opportunity to start a positive lending history as an individual entrepreneur. Thus, access to targeted lending for small businesses will be closed.
An individual entrepreneur must keep in mind that in order to obtain a loan for a large amount, he will have to provide security . It will become a confirmation of solvency for the bank.
Lenders accept the following property as collateral:
- vehicles;
- real estate;
- land;
- equipment;
- specialized equipment;
- inventories;
- securities.
After an entrepreneur submits an application for a loan, the bank conducts complete analysis of financial and economic activities related to his business. If it is found to be profitable and successful, the likelihood of the application being approved will increase.
Difficulties with obtaining a loan arise if the entrepreneur is new to business. In this case, income will not be shown. It is much better if the entrepreneur is able to document the fact of investing in the business, as well as provide a well-written business plan.
The bank may require a beginning entrepreneur to provide:
- various payment documents (receipts, checks), confirming the acquisition of fixed and working capital - materials, equipment and others;
- certificate of ownership or real estate lease agreement, necessary for conducting business activities;
- bank statements, confirming money transfers aimed at business development;
- guarantors with a stable income , who can be both employees of companies and successful individual entrepreneurs.
For business lending, including individual entrepreneurs, The most commonly used types of loans are::
- factoring;
- investment loan;
- letter of credit;
It is important to choose the lending method wisely. If you do not have sufficient financial knowledge, you can turn to professional credit brokers.
It is important to note, that individual entrepreneurs unlike ordinary individuals, are not very attractive to banks as clients. This is due to the high risk that a financial institution assumes when issuing a loan.
On the one side, banks usually do not question the purpose of an individual receiving a loan. As a rule, this is a major purchase, home renovation, travel and others. Moreover, hired workers have a guaranteed income in the form of wages.
In the same time, the purposes of lending to individual entrepreneurs are not so obvious. Their profit is not secured by anything and there are no guarantees of its permanence.
Running your own business always involves risk. Many entrepreneurs face failure BEFORE payback moment. That is why banks require the provision of property as collateral or confirmation of the success of the business.
Large lenders often offer entrepreneurs specialized loan programs . The fact is that such services are an important line in the revenue side of the budget of credit institutions.
However, it is worth considering that priority in approving loan applications is given to entrepreneurs who have been successfully working in their field for several years.
For beginning entrepreneurs who want to get a loan, there are 2 options:
- obtain a consumer loan or credit card as an individual;
- do not despair and continue to look for a program for individual entrepreneurs.
It turns out that it can be difficult for an individual entrepreneur to get a loan. Therefore, experts recommend carefully studying all the nuances of such loans in advance.
Types of bank loans for individual entrepreneurs
2. What loans do banks offer for individual entrepreneurs - 4 main types
Banks lend to individual entrepreneurs in several ways. Below are described 4 most popular types of loans for individual entrepreneurs .
Type 1. Loan to replenish working capital
Such loans are used to replenish working capital in the production process.
The reasons for taking out such a loan are usually:
- intensive growth of production, For example in season;
- the desire to buy a significant batch of raw materials, materials or goods at a favorable price, but lack of funds for this.
Traditionally, the repayment period for loans of this type does not exceed 2 years . To obtain it, the entrepreneur will have to confirm his solvency. For this purpose, banks are usually asked to provide activity report.
After signing the loan agreement, the entrepreneur is given repayment schedule. It is important to follow it exactly, make payments on time and in full.
At the same time, entrepreneurs are often provided installment plan on 3 month (especially for seasonal business). During this time, funds usually begin to flow into the individual entrepreneur’s current account.
Type 2. Overdraft
You can apply for this loan 1 time per year . After this, the funds can be used at any convenient time.
In most cases, overdraft is offered by banks that maintain the entrepreneur’s current account. If the turnover is high enough, collateral will not be required to obtain such a loan.
You should carefully study the loan agreement. One of the most important overdraft parameters is debt repayment period. It can be one or several months.
When the debt is fully repaid, the money can be borrowed again. This principle is used throughout the year.
Type 3. Consumer loan for individual entrepreneurs
A special feature of this type of loans is their non-targeted nature. It turns out that the bank does not check the direction in which the funds are used. This approach significantly simplifies the application process and increases the likelihood of loan approval.
It should be kept in mind that a consumer loan is issued only to individuals. However, due to the special status of individual entrepreneurs, some banks may refuse to issue them such a loan.
In most cases, the amount of the consumer loan does not exceed 100 000 rubles. To increase the loan, you will need to attract a guarantor or co-borrower. This will allow you to get before 500 000 ruble th. If an even larger amount is required, you will have to provide high-quality collateral.
Type 4. Targeted loan
This type of loan is issued for specific purposes - expansion of trade and production, purchase of a vehicle.
The bank will require confirmation of the direction of spending the funds. To do this, you can provide checks, payment orders, PTS and other documents.
Typically the loan amount is approx. 1 million rubles , and the repayment period is about 5 years.
We told O 4 - main types of loans for individual entrepreneurs. Do not forget that each bank offers its own conditions.
Therefore, you should study the maximum offers on the market and compare them. Only in this case will it be possible to choose the best option.
What factors influence loan approval for individual entrepreneurs?
3. What parameters do banks pay attention to when issuing loans to individual entrepreneurs?
Each bank independently develops the requirements it sets for potential borrowers. However, there are a number of parameters that each financial institution takes into account when applying for a loan for individual entrepreneurs.
Parameter 1. Credit history
During the consideration of an application for a loan from individual entrepreneurs, the bank examines. This is explained by the fact that the individual entrepreneur is an individual.
There will be no problems with obtaining a loan if the following conditions are met:
- there are no overdue loans;
- The individual entrepreneur did not declare himself bankrupt;
- previously received loans are closed in a timely manner;
- there are no existing loans or they are small;
- There are no complaints from the tax office.
Should be considered, that a complete lack of credit history (when loans have not been issued previously) does not guarantee approval.
To create a positive reputation, you can register quick loan through microfinance organizations and close it on time. It is important that the company used for lending transmits information to the BKI ( credit history bureau).
Parameter 2. Compliance with laws
When considering applications, the bank always studies legal status of entrepreneur. To do this, they will definitely check the presence of debts to the budget for the transfer of taxes, as well as debts to counterparties.
In addition, the bank takes into account the following points:
- timely payment of wages to the entrepreneur’s employees;
- absence of administrative and criminal offenses;
- property belonging to the entrepreneur should not be seized.
Parameter 3. Amount of income
One of the main signs of solvency is traditionally considered income level. It is not difficult for citizens who work for hire to confirm it - just ask the employer’s accounting department for a corresponding certificate.
However, the entrepreneur cannot provide such a document, so he will have to familiarize the bank with accounting reports about your activities for at least 6 months.
Important! The level of solvency of potential borrowers is the most important requirement of credit institutions. Therefore, the entrepreneur will have to convince the bank that he is able to receive regular stable profit.
However, high income today is not a guarantee that a business will remain successful. Therefore, some banks consider financial statements to be an insufficient basis for approving a loan.
Additionally, the following proof of solvency may be required:
- primary documents;
- auditors' reports;
- indirect confirmation of the level of solvency ( For example documents for expensive liquid property - vehicles, real estate).
Parameter 4. Duration of activity
If the state registration of an individual entrepreneur was carried out shortly before submitting an application for a loan, you should not wait for approval. The only chance to become a borrower in this case is– attract guarantor or provide liquid pledge.
Banks have never been charitable organizations. It is important for them to return the borrowed funds with interest without any problems.
Meanwhile, it is impossible to assess the probability of repayment of a loan issued to an entrepreneur who has recently been working. That is why business experience in most cases should be at least 6 months .
Banks are required to provide repayment guarantees from potential borrowers. To receive a loan, entrepreneurs must confirm their level of solvency. The circumstances described above are necessary precisely for this.
How to get an individual entrepreneur loan - a guide for a new entrepreneur
4. How to get a loan for an individual entrepreneur from scratch - 5 main stages of obtaining a loan for a beginning entrepreneur
One of the conditions for obtaining loans by individual entrepreneurs is availability of a current account. Without it, it is difficult to track the receipt of funds.
However, concluding an agreement on an account is not enough. To get a loan, you will have to complete a number of actions. Below is instructions , developed by specialists.
Stage 1. Business registration
Any Russian citizen who has reached the age of majority has the right to register as an individual entrepreneur.
Also important conditions are that the future entrepreneur should not:
- be in the civil service;
- be declared bankrupt less 12 months ago.
To register a business you must pay state duty, the size of which is 800 rubles .
If a citizen for some reason does not want to register a business on his own, he can contact a specialized company. Naturally, in this case, costs will increase.
One of the documents required for registration is statement . Its form is established by law. It is important to fill out the application as carefully as possible - Errors and typos are not allowed. It is important to study it in advance so that you know what data you will have to provide.
An entrepreneur must understand that the application includes the so-called activity codes.
Costs early decide what the entrepreneur will do. After this, it is important to study the legislation and select the appropriate codes.
Another important registration step is choice of taxation system . If the entrepreneur does not have sufficient knowledge regarding accounting, experts recommend him to consider the use case simplified taxation system.
An individual entrepreneur does not have to use a seal in his activities. However, you can order it if you wish. The cost varies depending on the region, manufacturer and complexity of the design.
Stage 3. Selecting a credit institution and submitting an application
Many people call the most important step in applying for a loan bank selection . Today, a huge number of lenders offer programs aimed at small businesses. The entrepreneur’s task at this stage is to choose the optimal option.
Ideally, preference should be given to large reliable banks with an impeccable reputation. It is also important that the location of the offices is as convenient as possible.
There are other important criteria for choosing the best bank:
- period of activity in the Russian financial market;
- conditions of lending programs for individual entrepreneurs;
- proposed rates;
- reviews from entrepreneurs who have already taken out a loan from a specific bank.
Today, you don’t have to visit a bank office to submit an application. Most major credit institutions offer to do this on their website. in online mode . This option allows doubtful entrepreneurs to send an application to several banks at once.
The information provided is verified by employees Security Services. After this, the bank makes a final verdict on the application. If approval is received, the entrepreneur must apply with the necessary documents to the nearest bank branch.
Stage 4. Preparation of a package of documents for obtaining an individual entrepreneur loan
A simple rule to remember- how more number of documents, topics higher chances for positive solution .
Most often, banks require from individual entrepreneurs:
- passport;
- tax registration certificate (in simple terms, TIN);
- the extract from the Unified State Register of Individual Entrepreneurs must be fairly recent, usually received no more 1 months ago;
- an extract from the current account confirming all movements on it;
- tax return for the previous reporting period;
- Primary documentation may also be required.
When checking the information provided, the bank often requests additional documents.
Worth considering! Get a loan without proof of incomealmost impossible for an entrepreneur.
Even if such a loan is issued, the interest rate on it will be minimal 5% higher than traditional.
Stage 5. Receiving borrowed money
An individual entrepreneur is unlikely to be able to get a cash loan. The money under the loan agreement will be transferred to checking account.
If the loan is targeted, funds will be immediately transferred as payment for purchased vehicles, real estate, equipment or raw materials.
If you strictly follow the instructions developed by professional financiers, you will be able to obtain a loan much faster.
5. Where to get a loan for individual entrepreneurs to open and develop a business - TOP 3 best banks
When choosing a credit institution, an individual entrepreneur should not forget that he can take advantage of programs not only for individual entrepreneurs, but also for individuals.
With a huge number of offers, it is not easy to choose the best option. Can help review of the best offers from banks , compiled by experts.
1) Sberbank
Sberbank traditionally enjoys the greatest popularity among Russians. It provides lending to both individuals and legal entities, as well as individual entrepreneurs.
You cannot ignore the program, which is called « Confidence" . It is intended for lending to small businesses and individual entrepreneurs.
The loan amount under the program in question can be from 30,000 to 3 million rubles . The maximum debt repayment period is 36 months. You are not required to provide collateral to obtain a loan. The rate is from 16 % per annum.
Among the main requirements for the borrower are the following:
- age no less 23 and no more 60 years;
- minimum period of activity as an individual entrepreneur – six months.
2) VTB Bank of Moscow
For those who are just planning to organize their own business, it is best to register consumer credit. VTB Bank of Moscow offers many programs that differ in conditions and requirements. The funds received from such loans can be spent on any needs.
In addition, several programs have been developed here for lending to individual entrepreneurs.
The most popular are - “Turnover”, “Business Prospect”, “Overdraft”. The bet on them begins from 14 % per annum.
3) Alfa-Bank
For those entrepreneurs who need funds as soon as possible, experts recommend emphasize on credit cards this bank.
They have a fairly long grace period. This means that if the debt is repaid within 100 days you won't have to pay interest. At the same time, the grace period also applies in case of withdrawal from the card cash .
An interesting offer is the card "Twins" . It combines a debit and credit card. The maximum credit limit is 500 000 rubles .
Alfa-Bank also offers specialized programs designed for lending to individual entrepreneurs. Regular customers of the bank can count on a more loyal attitude and the most favorable conditions.
For a more comfortable comparison of the presented banks, the main lending conditions are summarized in a table.
Table of banks with their terms of lending to individual entrepreneurs:
6. What are the conditions for obtaining a cash loan for individual entrepreneurs?
When submitting an application, individual entrepreneurs, like any other borrowers, are subject to a number of requirements.
Despite the fact that each bank has the right to develop them independently, general mandatory conditions can also be named.
The main requirements for the borrower are:
- age from 21 year to 60 years;
- absence of debts on various contributions to the state, including taxes;
- registration as an individual entrepreneur not less 12 months;
- business experience more than six months.
For a bank, issuing loans to individual entrepreneurs involves a high degree of risk. This is why loan terms become more stringent. Yes, the rate will be at least 17% per annum .
The size of the loan is influenced by the presence of collateral:
- in its absence, in most cases the maximum loan amount will be not more 1 million rubles.
- When secured in the form of liquid property, the loan amount will depend on its value.
The average period during which the debt will need to be repaid is 3 -5 years . The maximum it can reach 10 years.
In general, it should be kept in mind that the conditions for providing funds are most often set individually. It all depends on the characteristics of the borrower, as well as the availability of collateral, including collateral and guarantors.
Ways to obtain a loan for individual entrepreneurs without collateral or a guarantor
7. Where and how to get a loan for an individual entrepreneur without collateral or guarantors for a long period - review of the TOP 10 options
Not all entrepreneurs are able to get money from the bank. This process is lengthy and does not guarantee success. Meanwhile, there are other ways to get money on credit . All possible options are summarized below.
Option 1. Contact the servicing bank
Contacting the bank that conducts checking account IP or in which it is open deposit, significantly increases the probability positive decision .
These credit institutions have information that can be used as confirmation of solvency.
Option 2. Applying for a consumer loan as an individual
Many banks offer consumer loans with a simplified application procedure. Such loans allow you to use the funds received at your discretion.
However, it is worth considering that such programs allow you to get a small loan amount.
Option 3. Secured loan
One of the most realistic ways to get a loan for an individual entrepreneur is loan secured by property . Real estate, vehicles, securities and other property can be used as collateral.
Important, so that the property belongs to the borrower by right of ownership and is highly liquid.
Option 4. Leasing
Leasing is also called financial lease. It allows you to obtain equipment and vehicles for rent with subsequent purchase.
The chance of getting a lease from an individual entrepreneur is quite high, because until the debt is paid off, the property remains the property of the lessor.
Read more about this for individuals and legal entities in the special issue.
Option 5. Investment funds
Quite rare, but still found specialized funds who direct their funds to the development of small businesses.
However in most cases they invest in unique and high-tech activities.
Option 6. Help from credit brokers
Brokers are intermediaries between the lender and the borrower. With their help, you can choose the best option, as well as prepare an application for a loan.
Naturally, brokers charge for their work commission. It is important not to enter it until you get the result., otherwise you may lose money and not receive a loan.
Option 7. Loan from loved ones
When looking for funds, it is important to explore all possible options. Don’t be shy about trying to borrow money from friends, family and acquaintances.
In this case, you will not have to prove your solvency, prepare documents, or wait for review. However, today not everyone will agree to lend money without interest.
Option 8. Private investors
Today there are many people who agree to give their money to business development. You can find them at special Internet forums.
But keep in mind that this option is too different high rates.
Option 9. Overdraft
An individual entrepreneur can apply for an overdraft in 2 options:
- to a current account;
- to a debit card opened for an individual.
The convenience of an overdraft lies in its renewability. It is enough to conclude an agreement once and then return and borrow money again.
In other words, The bank allows the entrepreneur to spend money in excess of the balance available on the account or card within the established limit, which depends on the cash turnover over the last six months.
Option 10. Receiving subsidies from the state
The subsidy is targeted government assistance to small businesses and individual entrepreneurs. Most often they are represented by municipal and federal programs, as well as business incubators.
Do not forget that soon after receiving the subsidy you will have to submit documentary evidence of the intended use of funds .
If the amount is not spent in full, you will have to return the rest to the state. For inappropriate waste, the entrepreneur faces criminal liability.
An individual entrepreneur should consider all possible options for borrowing funds. This allows you to significantly increase the chance of a positive decision.
Useful tips on how to reduce the loan rate for a starting individual entrepreneur
8. How to reduce the interest on a loan for an individual entrepreneur - TOP 3 tips for aspiring individual entrepreneurs
When applying for a loan, it is important to use all available methods to reduce the rate. This is especially true for large long-term loans. In this case, even a few percent can save several thousand rubles annually.
Below are expert advice on how to achieve lower interest rates.
Guarantors are one type of security. They can serve as:
- individuals who are employed and have a stable income;
- successful individual entrepreneurs;
- legal entities.
The guarantor will also have to prepare documents in accordance with the list developed by the bank. The presence of property, deposits and other assets should be documented.
It should be remembered that if the borrower refuses to pay the loan, the guarantor is also responsible for repaying the debt and risks his credit history. Therefore, entrepreneurs should not let down the people who vouch for them.
Tip 2. Offer the bank property as collateral
The collateral helps convince the bank of solvency, as well as confirm the intention to repay the debt on time.
Lenders have no problem accepting real estate, vehicles, expensive equipment.
Tip 3. Use targeted lending programs
If an individual entrepreneur plans to spend borrowed funds for specific purposes - the purchase of equipment, working capital, for business expansion, it is worth using targeted loan .
Such programs are rare, but the rate on them is usually several percent lower.
By using the tips presented here, you can significantly increase your likelihood of getting a better rate.
9. Answers to frequently asked questions from the site
The topic of lending to individual entrepreneurs is quite broad. Therefore, it is impossible to cover it completely in one publication.
However, quite a lot of questions arise. To save our readers time, we provide answers to the most popular ones.
Question 1. Where can I get a loan for an individual entrepreneur secured by real estate?
The presence of collateral increases the likelihood of receiving approval for a loan application.
Banks offer entrepreneurs several options for secured loans:
- Consumer loans for individuals. Their size depends on the value of the property provided as security. When purchasing real estate with received funds, the return period may exceed 20 years. However, some banks do not provide such loans to individual entrepreneurs.
- Express loans. Their advantage is the high speed of approval and issuance. However, they are also characterized by high interest rates and small loan amounts.
- Loans designed directly for individual entrepreneurs. You will have to submit a fairly large package of documents, including financial statements. Due to the high risk, the rates for such programs are quite high.
Bank loans are always the most profitable. However, there is also other financial market participants who lend money:
- Pawnshop can issue money on bail. The peculiarities of such a loan are a high rate and a low assessed value of the property. If the loan is not repaid on time, ownership of the pledged property will be transferred to the pawnshop.
- Credit Union – a cooperative that has the status of a non-profit organization. It is worth joining if you expect regular needs for funds. Loans to cooperative members are issued at a reduced rate.
- Microfinance organizations They give out money quickly enough to almost everyone, without conducting a serious check. However, the stakes here are too high and can reach 1 % in a day.
- Private investors are individuals who lend their money on pre-agreed terms. However, there are quite a lot of scammers operating in the field of private lending.
The main condition put forward by the bank when issuing a loan is the solvency of the borrower. An individual entrepreneur must provide evidence of the stability of his income.
Confirmation of the receipt of profit by an individual entrepreneur is management and accounting reporting on the total results of its activities. However, these documents cannot reflect the level of income received by the individual entrepreneur in the future, and, most likely, the bank will refuse to issue funds. How to be? Knowing what requirements banks put forward for potential borrowers, an entrepreneur can analyze them and apply for a loan.
Confirmation of the receipt of profit by an individual entrepreneur is management and accounting reporting on the total results of its activities.
To assess the solvency of individual entrepreneurs, each bank develops special programs, applying an individual approach to each borrower, and examines in detail the results of its activities.
Before issuing a loan permit, the bank evaluates:
- Income level of individual entrepreneurs: amount of revenue, amount of monthly taxes, net profit.
- Credit history: no late payments, timely payment of taxes, active use of loans, absence of any compromising information.
- Property that can serve as collateral. You must also have a guarantor.
- Duration of business: it must be at least 1 year, and actual activity must be at least 6 months.
- Compliance by the organization with legal norms and the absence of any administrative or criminal offenses.
If an individual entrepreneur has a stable profit, has no debt on loans from other banks, pays taxes and salaries to employees on time, is a conscientious borrower with a “good history,” the bank will have no complaints and will issue a loan.
Package of documents
Most individual entrepreneurs use the simplified taxation system (STS) and must prepare accounting and financial statements to receive a loan. To prove your reliability and confirm your solvency, you must provide a complete package of documents.
Documents for obtaining a loan:
- Original and copy of the passport.
- Certificate of state registration of individual entrepreneurs.
- Copies of tax returns for the last reporting period.
- issued no more than 1 month ago.
- Certificates from the tax service about current accounts that are opened in the name of the entrepreneur in banks.
- Certificate of absence of debt.
When applying for a loan, the bank may require additional documentation. This may be a list of property, equipment and vehicles owned - everything that the entrepreneur owns. In some cases, the bank will need to provide warehouse certificates, copies of cash books, price lists, documentation on the amount of working capital in other banks, invoices, etc.
Types of lending
Today banks provide the following types of loans:
- express loan;
- loan for small business development;
- consumer loan.
Express loans
Any entrepreneur can get this loan. Its registration will take a little time, and a minimum package of documents is required to receive funds. Express loans are issued in stores, shopping centers and bank branches.
When receiving such a loan, you do not need to confirm your income. But the downside is that the money is issued at a high interest rate, and you can get no more than 100,000 rubles.
Small business development loan
To support and develop small businesses, many banks are developing special lending programs.
Most often, a loan is issued for:
- expansion of the range of goods;
- acquisition of machinery, equipment, transport;
- development of new areas of activity for individual entrepreneurs.
In order to take it, you must:
- have positive financial statements;
- confirm solvency;
- work as an individual entrepreneur for at least 1 year in the Russian Federation;
- have a good credit history.
Programs for the development of small businesses provide for the issuance of large sums for a period of up to 5 years. However, many entrepreneurs are not satisfied with the high interest rate - from 24 to 27%.
Consumer loan
A consumer loan for individual entrepreneurs provides for the issuance of significant amounts at low interest rates. Its main difference from an express loan is the mandatory confirmation of income.
Conditions for receiving funds:
- To receive an amount of up to 100,000 rubles, a full package of documents is required confirming the profitability and stability of income.
- To receive an amount over 100,000 rubles, you must find a guarantor.
- To receive an amount over 500,000 rubles, you need a collateral, this could be your real estate.
Please note that when applying for a consumer loan, you must indicate the specific purposes for which funds are required. This could be a trip, repairs, education, etc.
If in your loan request you indicate that funds are required to start and develop your own business, the bank will refuse you.
Banks are developing many programs that allow you to take out a loan on terms convenient for you. Before visiting the bank, study all the nuances of obtaining a loan. Borrowed funds give you the opportunity to expand your business or enter into contracts for new large projects without diverting funds from the company’s turnover.
If a citizen has an idea to start his own business, which in the future can bring big profits, but at the moment he does not have money, then he can submit an application to the bank in order to receive the necessary amount.
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Loan types
Taking out a loan to start a business is a good idea if the citizen clearly understands how much money he needs and how he plans to spend it. In this case, it is possible to open a business from scratch.
The main difficulty is that it is almost impossible to get a loan for an unemployed person, so in order to start your own business, you first need to find another opportunity to receive a regular income. In addition, state registration as an individual entrepreneur will be required.
There are several types of loans - you should choose the most suitable option. They will have different rates, terms, and repayment terms.
Types of loans:
| Microcredit | This option is the most suitable if you need to receive a small amount - about 30,000 rubles. some microcredit organizations issue larger sums - about 300 thousand rubles. If you have all the basic documents and meet the established requirements, there will be no problems with obtaining a loan. Soon it will be possible to receive microloans to start your own business with government support. Some banks have already launched trial programs that make lending accessible to farmers and gardeners. The decision is made within a short period of time – up to 5 working days. |
| Overdraft | This type of loan in some cases can become a kind of lifesaver, which makes it possible to receive funds for a short period of time without asking for them from family or friends. During the entire loan period, the overdraft will be updated from time to time. In this case, the final limit is determined by an amount of 250 thousand. The overall turnover of the company is taken into account - if it is already operating. If you plan only to open, most often you will not be able to receive such a payment. |
| Special business loan | It is very difficult to obtain it today, since the main task for the borrower is to prove the profitability of the future business, which is almost impossible to do. In Russia, small businesses still do not receive sufficient support due to the fact that not every project can create a certain profit. |
There are several programs, participation in which makes it possible to develop a business and receive large amounts of money. you will need to provide the recipient's complete questionnaire,
Where can I get it
You can get a loan for a small business from the following organizations:
| VTB 24 | The loan is issued at low rates, in addition, different conditions are offered. Requirements for clients differ depending on which form is chosen - individual entrepreneur or LLC. Collateral is often required for this type of loan. |
| Sberbank | A good program for beginners is “Business Start”. Funds will only be issued on the condition that a carefully considered plan is received. One option is to participate in a franchise. |
| Rosselkhozbank | Loans are available for small businesses. There are no restrictions on the amounts issued. |
| Alfa Bank | Only two types of financing are possible. Borrowers are subject to certain requirements. |
Banks strive to avoid risk, so they conduct thorough checks on all applications. The funds will be transferred to the specified bank account of the organization.
What is needed for this
You can increase your chances of successfully obtaining a loan if you have the following factors:
- Good credit history.
- No outstanding loans or arrears.
- Having a competent business plan.
- Having a stable income.
- Parallel employment in addition to the planned business.
- Availability of collateral. It is necessary as a guarantee that funds will be received.
- Attracting a guarantor.
It is necessary to confirm income by providing a certificate in Form 2 of personal income tax. You can significantly increase your chances by involving guarantors, co-borrowers, or if the company has one or more co-founders.
In addition, there are certain requirements for clients:
- The borrower's age is from 30 years. The maximum age for business loans is 45 years.
- Having permanent registration at your main place of residence.
- Registration of real estate ownership.
- No criminal record.
- A citizen must be in a registered, official marriage - this is not a mandatory requirement, but banks are more willing to issue loans to married citizens.
Each bank has certain requirements, therefore, before submitting an application, you should clarify what is required from the applicant and take these requirements into account when filling out the application form.
How to get
To get a bank loan to start your own business from scratch, you must follow these steps:
- Complete an application and submit it to the bank in any convenient way - online or during a personal visit. The questionnaire must indicate not only information about the citizen, but also the selected loan program, the required amount and the total amount of profit received.
- The application is being reviewed. A bank employee analyzes the data and decides how much he can issue and for how long. Any business started from scratch is called a startup.
- The applicant must provide all documents based on the selected loan program.
- The next, important stage is to contact the state organization - the Federal Tax Service, in order to register as an individual entrepreneur and register in the Unified State Register of Individual Entrepreneurs.
- One option is to study the franchising programs offered by the bank’s partners.
- Then a business project is developed in detail, based on the program that was chosen. It is necessary to prepare a complete package of documents, determine the location where the office will be located, and also resolve all other issues. You will need documents requested by government organizations - TIN, individual entrepreneur registration certificate and other papers.
- Then you apply for a small business loan. You will also need to collect about 30% of funds to pay the down payment.
- If a positive decision is made on the application, you should wait for the transfer to the account, and only after that start launching your own business.
The main task for a novice businessman is to choose a suitable bank that offers favorable conditions.
You should check what offers are available for small businesses and how much money you will have to pay as a down payment. Most often, banks issue loans for already started businesses that need development.
In addition, it is much easier to get a loan if several people - founders - are involved in opening a business.
When filling out an application for a developing project, you should not expect to receive a large amount of money. You can increase your chances by fulfilling all the conditions stated by the bank.
Having collateral can be a factor that increases your chances of getting a loan. As such an object, you can offer real or movable property - a car, valuables.
Required documents
A complete package of documents required to obtain a business loan:
- Application – questionnaire. A standard application is filled out - online, or by hand - directly at the bank.
- Copies of registration and constituent documents. If any changes have been made to the founding papers, re-registration documents will also be required. These include the Charter, the decision to create a company. If the organization's current account is opened in the same place, there is no need to provide these papers.
- A copy of the passport of the company founder. If there are several directors, copies are provided for each citizen. It is necessary to photocopy all pages, even those that do not contain any information.
- An extract from the Unified State Register of Individual Entrepreneurs or the Unified State Register of Legal Entities - it must be fresh, received no more than 30 days in advance. If the extract was issued much earlier, then you must additionally attach written confirmation that it is in fact correct, and no changes to the constituent documents were made later.
- Consent to the processing of the citizen’s personal data is attached on a separate sheet. This is a standard document. It is issued by the bank against the signature of the applicant.
- Ready business plan. The bank’s decision depends on how competent and high-quality it is.
Additionally, other documents may be required. So, if the founder of the company is officially married, written confirmation of the spouse’s consent to receive a loan will be required.
To get approval for a loan, it is very important to correctly draw up a business plan, work through all the points, determine the exact amount that is needed to start a business, and only then submit an application. In addition, you should choose a popular bank that provides loans at low interest rates.
Working for yourself is much more interesting and, most often, more profitable than for a third-party organization. Therefore, citizens have an interest in starting their own business. But not every person has his own means to start an activity. Therefore, the issue of lending to start-up entrepreneurs (IE) is extremely relevant. Next, the features of obtaining bank loans and the procedure for obtaining gratuitous assistance from the state will be considered.
How to get a loan for a beginner entrepreneur
In almost all banks, the most basic requirement for a client-entrepreneur is that he has experience in this area of activity. Some institutions consider applications if the work experience is at least a year, others - at least 6 months. In any case, an unemployed citizen or an employee who has just decided to start a business is unlikely to be able to get a loan from a bank as an individual entrepreneur for these purposes.Almost the only way out in this situation will be. Such loans are issued for any purpose, so the funds can be used to start your own business. The disadvantage of this solution is that a citizen can receive a rather modest amount for. In addition, the cost of loans for individuals is an order of magnitude higher compared to loans for enterprises.
You can also consider the option of obtaining a loan outside the bank. But a private loan or a loan from a non-bank financial institution usually involves high interest on the use of funds.
An alternative to a loan can be government assistance to start your own business. The Employment Center offers unemployed citizens a subsidy in the amount of an annual unemployment benefit. The amount depends on the level of salary for the previous period, but cannot exceed 58,800 rubles. Those. It's not a loan, it's a grant.
To receive funds from the Center, the borrower must:
- register with the Employment Center for unemployment;
- take a course on "Peculiarities of Entrepreneurship";
- write and defend your own business plan before the commission;
- obtain approval for the issuance of funding;
- register as an entrepreneur;
- get money and start your own business;
- report on the funds spent (confirm their intended use).
You can also use programs from banks with state participation (Sberbank, Rosselkhozbank, VTB). SME Bank also offers assistance in financing entrepreneurs. Support is provided through partner banks, which independently decide whether to grant a loan or not. Therefore, such programs are mainly provided to established enterprises with business experience, and not to beginners.
Features of a loan for opening an IP
An individual entrepreneur is a citizen and a legal entity at the same time. Therefore, a bank loan can be issued both as part of the provision of services to organizations.
It should be understood that any loan received by an individual officially has nothing to do with the business. When considering issues in the bankruptcy court, these loans cannot be written off.
Regardless of how exactly the loan is issued (for an individual or organization), most banks ask for collateral as a guarantee of debt repayment. The collateral can be:
- real estate (residential, commercial);
- vehicle (for personal use or used for business purposes);
- equipment, special equipment;
- commodity stocks, raw materials and materials.
Usually, when lending to individual entrepreneurs, bank employees carry out a complete financial and economic assessment of activities with a visit to the place of business. But when financing the opening of a company, clients still have nothing to show, since there is no activity. To increase your chances of getting a loan from a bank, a client can announce what investments he has already made in the organization of activities, and confirm this documented or visually:
- provide a check for the purchase of raw materials, building materials, equipment (or a receipt for prepayment);
- present a certificate of ownership (or a signed lease agreement) for the property to be used in the business;
- show the property that is intended for activity;
- provide an account statement or demonstrate that you have your own savings.
Before applying for a loan for an individual entrepreneur, you should understand what types of loans are.
- factoring - covering receivables in debt;
- leasing - the client uses the subject of the loan on a lease basis, and becomes the owner only after full payment of the debt under the agreement.
Loan payments can be as follows:
- annuity (each month the total amount of payment is the same);
- differentiated schedule (the body is paid every month in equal installments, interest gradually decreases);
- individual schedule (set taking into account the specifics of the client's work).
Banks that give loans to individual entrepreneurs: an overview of offers *
As part of the Business Start product, it issues a loan for the purchase of a franchise or the organization of a business according to an existing standard project. In the latter case, there are some peculiarities. A well-known trademark is not used to expand the sales market, the borrower works independently.
A franchise involves opening a business under a well-known brand using a well-known brand and established business relationships. The borrower receives comprehensive support in all aspects of the business from the franchisor (trademark owner), as well as from Sberbank. The client uses a ready-made business plan that has already proven itself to be successful and profitable, and does not come up with something of his own. This allows you to significantly minimize the risks of failure of the entrepreneur.
Loans for individual entrepreneurs in the Russian Agricultural Bank have an agricultural focus (purchase of grain, young animals, etc.). You can also get a loan secured by the purchased equipment and apply for a loan for the purchase of business real estate. As part of the State Contract product, entrepreneurs can receive up to 45 million rubles to ensure the execution of the State Order.
No collateral is required for this loan, and the amount can be issued in full (up to 100% of the required amount). The loan repayment schedule can be drawn up individually, taking into account the receipt of payments from the customer. But loans from Rosselkhozbank can be obtained by those entrepreneurs who have been working for at least a year. Those. the offer can be used if a decision is made to open a new line of activity in the presence of an existing one. For example, the borrower raised cattle, and now decided to grow wheat.
VTB 24 issues an Investment loan for the implementation of new projects. Credit money can be used for construction, repair, purchase of real estate, special equipment, etc. It is allowed to issue a loan for up to 7 years, it is allowed to cover the loan with collateral for only 85% of the total debt. Applications from 4 million rubles are considered. and higher. You can fill out the form directly on the site.
*Date of data update – April 2015.
And although the economy is going through hard times, banks are still quite willing provide loans to small businesses. The main task of an entrepreneur is to get the best loan conditions. Here are 7 steps that an individual entrepreneur or legal entity needs to take to get a loan to develop their business.
Step 1
Decide what needs to take out a loan for
An individual entrepreneur or legal entity can take out a loan without collateral and for any purpose from almost any bank. Only the rates will be high, and the conditions for obtaining a loan will be quite strict. Therefore, when planning to take out a loan for business development, an entrepreneur must decide in advance for what purposes he will spend the money received. By indicating why you need the money, you can choose a loan with a lower rate.
It is believed that there are good and bad reasons for taking out a loan.
Good reasons include: acquisition and modernization of equipment, construction or purchase of real estate, a car. The bank can set a condition that up to 70% of the loan will go towards such capital investments in fixed assets. You can use property or goods purchased as collateral, as well as raw materials and semi-finished products for production purchased with credit funds. In these cases, the rate may be lower than that of a loan for unspecified purposes.
Bad reasons - repayment of other loans, current losses or acquisition of non-core assets. In these cases, borrowers are subject to more stringent conditions for obtaining a loan.
Step 2
Decide how much money to get on credit
An individual entrepreneur or legal entity can take out a loan and by 150 thousand rubles, and by 200 million rubles, depending on the goal. So that the representatives small business no problems getting a loan, you need to immediately decide how much to ask. It is believed that many entrepreneurs they ask for less than they actually need. Underestimating the required amount can lead to problems due to a lack of working capital before the money borrowed begins to pay off.
At the same time, there is no need to act on the principle “Ask for more - they will give less.” If entrepreneur will try take out a bank loan for too large an amount, this may raise questions about the reliability of the individual entrepreneur or LLC.
planning get a loan for business development, you need to weigh everything, evaluate the budget, supporting your loan application with a financial forecast (profit/loss balance sheet, cash flow statement). This will allow the entrepreneur to better calculate his actions in the future, and perhaps show the lender that Individual entrepreneur or LLC plans his business carefully.
Step 3
Check whether the individual entrepreneur or LLC meets the requirements that the bank imposes on the borrower
Issuing business development loan, especially without collateral, banks, as a rule, have special requirements for borrowers. Therefore, it is important for an entrepreneur to know what lenders want and what it takes to meet those expectations.
Age.One of the conditions for issuing a loan may be the age of the borrower. For example, from 23 to 60 years old.
Time in business.Some lenders give money and provide better lending conditions to businessmen who have been in business for a certain period of time. It may differ for different types of activities. For example, for retail trade - more than 6 months, for wholesale - no less than 18 months, and for manufacturing companies - the minimum period in business can be 2 years.
Credit history. A good credit history will show the lender that the entrepreneur is a reliable borrower, which will undoubtedly increase the chances of receiving a loan on favorable terms.
Cash flow report. The main thing you need to know if you want to get a loan for business development is that the bank may, and most likely will, require you to provide financial statements on the flow of funds. This could be a tax return, income and expense books, bank statements on total monthly turnover, etc. These documents show the entrepreneur’s ability to successfully repay the loan. It is on their basis that, most likely, a decision will be made to issue a loan for business development.
Step 4
Find a lender
Having understood why and how much money is needed, it’s time for the entrepreneur to choose a lender. These can be banks, other credit organizations, or even private investors who are ready to provide loan for business development with interest.
Commercial banks : This is the best option for traditional loans with standard lending terms.
Non-bank credit organizations : these are credit institutions that have the right to carry out certain banking operations that are established by the Central Bank.
Other creditors: Small local banks and other lenders who have an interest in the economic development of a particular area or industry.
Private investors : An individual entrepreneur or LLC with a bad credit history can try to take out a private loan against a receipt. This method of receiving money is becoming increasingly popular both among investors who earn money on interest and among entrepreneurs who urgently need money.
Step 5
Select a loan program and contact a credit institution
Before contacting a bank, it is important to study the loan offers of various organizations. Calculation of acceptable loan servicing costs based on the amount and repayment period. Important parameters are the interest rate and the method of calculating interest, the presence and amount of additional commissions, fines and other payments, the possibility and procedure for early repayment, as well as deferment of the loan.
Some banks offer individual entrepreneurs or legal entities to apply for a loan online. The websites of many credit institutions have online calculators that will help you choose the optimal rate and loan term.
A bank specialist will schedule a meeting, review the list of documents required to obtain a loan, and answer your questions.
Step 6
Prepare a package of documents for a loan application
In every bank package of documents for obtaining a loan for individual entrepreneurs and small businesses different, it can also change with different types of lending. But, as a rule, such a package includes:
Loan application and guarantor questionnaire according to the bank form;
Constituent and registration documents of a legal entity/individual entrepreneur
Financial statements
Documents on economic activities
Other.
A complete list of required documents will be provided to the entrepreneur by the credit institution that the individual entrepreneur or LLC chooses to receive a loan.
Step 7
Sign the contract and wait to receive the money
Expect loan approval for individual entrepreneurs or small businesses As a rule, it takes 3-5 days from the moment the full package of documents is provided.
Before signing the agreement, check whether all its terms correspond to those that you previously agreed with the bank. Carefully read the text marked with an asterisk or small print: the bank may include in the agreement its right to change the interest rate, terms and other conditions.
The bank can transfer funds to the current account legal entity or individual entrepreneur, as well as to the deposit account of an individual - the owner of the business.
These are typical
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