How to get a loan for individual entrepreneurs
How to attract investment Today, any individual has the opportunity to do business and become the owner of his own business. If the business of a developing company goes successfully, then after a while its owner will surely visit the thoughts associated with expanding its business. Most often, money is needed for the following purposes:
Renting new outlets and carrying out repairs in them;
Purchase of specialized equipment;
The purchase of a large batch of additional goods, etc.
If you have the necessary amount of money to complete the tasks, any plans are easily realized. However, often the situation is such that there is not enough free money for business development. In this case, the sole proprietor should know how to get a loan for individual entrepreneurs.
The first thing that an individual entrepreneur needs to do in order to receive a loan is to choose a reliable bank with the most favorable credit terms. For this you need to find out:
how many years the financial institution has been working in the market;
what is the degree of its reliability;
What is the reputation of the bank in the field of lending;
what reviews of the bank are left by its clients, etc.
In addition, it is recommended to carefully study the financial and economic indicators of the bank. This information is in most cases freely available on the official website of the institution.
The next step is to prepare a package of necessary documents. Banking institutions prefer to lend to stable and successful firms.
To prove its reliability and solvency, the owner of the company must provide:
document of registration of IP in the Unified State Register of Individual Entrepreneurs;
a document confirming the registration of individual entrepreneurs with the tax authorities;
tax return reflecting income received for the last completed reporting period.
Note! The above documents are included in the so-called “minimum package”. Often, banks are asked to provide the potential borrower with additional information that is necessary to check the history of the company in order to make a decision on granting a loan.
After filing the required package of documents, the individual entrepreneur must choose the type of loan and discuss his decision with the employees of the banking institution.
Usually the following factors influence the choice of a particular type of loan:
loan repayment period;
the presence or absence of collateral;
the presence or absence of guarantors.
The main types of loans
Today, banks offer their customers a variety of different lending programs. For convenience, they can be divided into three types, each type of loan has its advantages and disadvantages.
Express loan. Its main advantages in accessibility and ease of receipt. Today, such a loan can be obtained at any large shopping center with a passport and any other document confirming the identity of the borrower. The disadvantages of this loan include high interest rates and minimum loan amounts.
Consumer credit (loans to individuals). To issue a consumer loan, the bank requires documents from the borrower confirming its level of income. The advantages of this type of lending is that to obtain it, you can voice any goal (repair, rest, etc.). The interest rate on such a loan is lower than in the previous case, and the maximum loan amount is higher. The disadvantages include the fact that financial institutions check their potential borrowers on special databases, in which there is information about whether the client is an individual entrepreneur or not. If the audit shows that the borrower has provided false information to the bank, it is more likely that the loan will be denied. To receive a large amount of money in excess of 100 thousand rubles, the borrower must have guarantors. To get a consumer loan in the amount of more than 500 thousand rubles without collateral is impossible.
The loan for individual entrepreneurs is used for lending to small businesses. Financial institutions prefer to issue such loans to entrepreneurs with a good credit history, successfully operating for at least 6 months and not having tax arrears. At the same time, an entrepreneur can receive both cash for the development of his business, as well as a targeted loan, which allows him to buy vehicles, real estate, modern equipment, etc. Banks are less willing to offer loans to entrepreneurs who are only planning to open their own business.