Business expansion is a complex, multi-level, and ever-changing thing. In the small business sector, where non-current assets cannot yet serve as investment funds, the only way to find such funds is lending. But it is different. Target loans are good in their flexibility for the specific needs of the business. However, this is also their limitations. Practice shows that cash is the most flexible means. Therefore, a cash loan for individual entrepreneurs is the best way to invest in a business.
But getting material money directly from the bank to an individual entrepreneur is even harder than a targeted loan for development and / or expansion of a business, which is never issued in cash, but is transferred directly to the company’s settlement account.
Conditions for obtaining a cash loan for entrepreneurs
These conditions apply to both the individual entrepreneur and his work:
- transparency, full legality and a clear business structure, because without this it is impossible to objectively evaluate its profitability;
- income level should not only cover costs for each business period, but also leave at least a small net profit;
- registration in EGRIP;
- registration in the tax service;
- in different banks in different ways, but the entrepreneur must have at least some work experience (the main thing is that the business should not be open yesterday);
- almost always estimate the scale of current and non-current assets. Larger firms are thought to have a larger “survival margin”;
- the absence of a bad credit history, and if there is another – the obligatory participation of guarantors who have proven their financial soundness and “credit purity”.
As you can see, the requirements are pretty harsh. , of course, tend to include new lending programs in their list of services, but the situation has not changed much at the root. So, many individual entrepreneurs cannot take a loan on an IP, because they are forced to choose not a general or simplified taxation system, but an UTII or patent system, under which banks cannot fully verify the stated level of income. About net profit and no speech. Already in the basics of economic theory it is said that only monopolies can have a net profit. It is clear that such conditions are set rather not for real use, but for, so to speak, intimidation. Like, think again before asking us for cash for your business. Well, the other requirements are quite standard.
Review of credit programs and banks
Currently has about ten different small business lending programs, each of which has its own purpose: starting a business, supporting a business, expanding a business, and so on. For example, one of the most famous is Business Start. The name speaks for itself. here offers its financial services to those who have never been an entrepreneur, but want to try to become one. But within the framework of this article, this loan is not particularly interesting, since there is no cash here – all funds are transferred to the account of a young company for subsequent use according to the intended purpose. Much more interesting credit “Trust”. After all, such a loan can be taken without confirming the intended purpose. The second plus is the lack of collateral. The terms of the Trust are as follows:
- the lower limit of the loan is 80 thousand rubles, the upper – 3 million rubles;
- terms – from 6 to 36 months;
- interest rate – from 19% to 19.5% (if the loan is taken for longer than 2 years);
- alternative to pledge – the guarantee of individuals;
- The whole process of obtaining a loan does not take longer than 4 days.
However, the average interest rate in in the field of lending to individual entrepreneurs is slightly higher and amounts to 22%. Despite the existing limit in “Trust”, the maximum loan amount is limited only by the material capabilities of the individual entrepreneur. also works with clients with a bad credit history. In , business lending does not exceed 48 months.
A variety of loans for business is not inferior to . Here you can get a large multi-purpose loan “Investment”. True, he still has limitations. The entrepreneur has the right to spend the received money only on the development of his enterprise. But in this framework, the borrower is given complete freedom of action (the acquisition of current and non-current assets, the purchase of new licenses, etc.). In to take a similar loan can be on the following conditions:
- interest rate – 13.5%;
- the minimum amount is 850 thousand rubles;
- crediting period – up to 10 years;
- you need a deposit, but it is enough that its amount (in monetary terms) is 85% of the amount borrowed from the bank;
- money can be taken at once or issue a non-revolving credit line;
- To get a loan, you must pay a commission of 0.3%.
As you can see, adheres to a much longer lending period. Here, individual entrepreneurs can take a loan for up to 10 years. At the same time, the interest rate at for most business loans is almost the same as at – 21.9%. The age limits that a client should fit into are similar to as in . That is, from 21 to 60 years (at the time of debt repayment). The only thing that in some cases can increase the upper age limit (up to 75 years). In this practice is not observed. However, in it almost always refers to employees. In the business lending sector everything is much stricter.
Bank in terms of providing cash to businessmen is inferior to and . The entire business lending sector here is represented in only two areas: overdraft and non-earmarked loan. Overdraft in this article is of no interest, since it is associated with the creation of a negative balance of the current account and a priori cannot be cash. There are only non-earmarked loans, which, in essence, are a kind of consumer credit. But the interest rate at Bank is lower compared to and – 17%. Of course, for an entrepreneur the best option is a consumer loan, which is issued only in the form of cash. However, there are several difficulties:
- Giant interest rate. Especially for entrepreneurs. Therefore, it is recommended, if there is an opportunity, not to declare business at all, but to take a loan as an exclusively physical person for personal needs.
- Consumer loans are a priori small. Such a loan does not exceed 300 thousand rubles. For business this may not be enough. As an option – take a few consumer loans in different banks. But there is always the risk of “lightening up” (open credit history). Then the bank will probably refuse to deal with such a borrower at all.
- Due to legal confusion, many banks began to segregate customers – legal entities, individual entrepreneurs, and individual entrepreneurs. Businessmen, despite their dual status, are no longer regarded as physical persons. Consequently, are not eligible for consumer credit.
List of required documents
All banks require approximately the same documentation:
- personal documents of an entrepreneur (application form, passport, military ID for men younger than 27 years, TIN, etc.);
- extract from EGRIP on registration as an IP;
- declaration from the tax service for the last period, form 3-NDFL (six months, a year, two years – depends on the chosen tax system);
- documents confirming the property right of the borrower to immovable and / or valuable movable property (if any);
- part of the accounting, showing the size of working capital;
- if a business needs licenses and permits, then all such papers will also need to be provided to the bank.
Additional documentation is discussed in person on an individual basis.
Amounts, dates and where the most profitable interest
This has already been mentioned in the text. In general, it is difficult to say where it is most advantageous to take a loan. Everywhere there are pros and cons. Both general and specific for a particular bank. In addition, the conditions do not stand still. Banks adapt to a changing economic situation. changes the interest rate, – loan terms, Bank – the programs themselves and so on.
Entrepreneurs interested in long-term projects should go to with its programs for 10 years. But those who need the lowest possible interest rate will be more suitable for Bank with its 17% (although objectively this is still a large percentage). And those who need short-term loans will find a large selection of the latter in . However, this does not mean that has nothing to offer for long-term investment projects. One of the goals of this article was to show that entrepreneurs can get cash in different banks. Only each bank has its own specific details. Also, the presented text is intended to familiarize the relevant circle of persons with the difficulties that may arise when a person takes part in a cash loan.