Pros and cons of a business development loan. Are there any benefits from microloans? The benefits of credit for large and small companies

The main problem for 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.

Banking companies come to the rescue credit products, providing both direct financing to 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 based on an assessment of the client’s solvency and on payment terms (that is, when interest is charged for the use of funds).

Types of bank loans

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

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 everyday demand. They are provided as a one-time issue for a period of up to 5-10 years, depending on the lending program and the conditions of a particular bank.

The peculiarity of such loans is the lack of reporting for the bank on the direction of 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 is provided not only for the purchase of residential property, but also for repairs, construction, acquisition of commercial real estate and other needs.

Both the purchased real estate and the client’s property can be used as collateral.

Mortgages are only available to individuals. Investment loans are used for organizations to purchase real estate.

Investment loans– loans that are provided for the purchase/reconstruction/construction of fixed assets of an enterprise. 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 also be considered investment loans.

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

Given the lender's lack of control over the use of funds, rates credit cards often much higher than rates on one-time loans.

Overdraft and contract loan. These types of financing are issued to both private and legal entities based on a study of turnover volumes 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 “in the red”). The funds then credited to the account are automatically debited to repay the loan.

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

Upon receipt of an application for leasing, the bank considers the possibility of purchasing equipment or motor vehicle from the leasing company. Then, after completing the purchase and sale, the bank leases it to the client for a long term this object subject to rental payment terms.

If, after the end of the lease agreement, the client wants to purchase the property, he pays the bank the residual value of the property minus rental payments.

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

By timing of financing

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. Working capital - most often for a period of up to 5 years (if lending is carried out under the programs of the EBRD, IFC or other targeted programs, the period can be increased to 10 years in agreement with the financing organization).

By type of collateral

Types of collateral that guarantee loan repayment:

Surety(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 the entrepreneur as an individual; when lending to individuals - any solvent persons).
Pledge 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 nominal value. Shares must be paid in full in cash.
Pledge of claims(relevant for factoring) – transferability accounts receivable to repay the debt under the loan agreement.
Pledge of shares, securities.
Pledge of goods in circulation. Most relevant for trading enterprises. The company should count on additional expenses on inspection of pledged property by survey companies.

Any deposit is required for insurance. Insurance Company selected from the list of those accredited by the bank.

By delivery methods

According to the methods of provision, loans are divided into:

one-time;
credit lines.

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

Credit lines can be renewable(lines with a debt limit) and non-renewable(loans with an issuance limit).

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

Documentary financing

Types of documentary financing:

Warranties (revocable and non-revocable)

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

If the principal fails to fulfill the obligations on time, the bank pays the counterparty the amount of funds specified in the guarantee with subsequent 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 disclosed (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's guarantee to make a payment in favor of the supplier in the absence of funds from the buyer.

The financing scheme is approximately as follows:

opening a letter of credit in a Russian bank;
confirmation of a letter of credit from a foreign bank;
submission of documents from a foreign supplier with an application for disclosure of a letter of credit (after delivery);
payment 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. Confirmation is required for its issuance foreign bank, and the cost borrowed money consists of the foreign bank’s rate for the provided financing and the Russian lender’s margin.

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

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

guarantees (for purchases in large quantities, absence of long-term relationships with the supplier; constant incoming cash flow) as a safety net and to reduce the likelihood of penalties imposed by the supplier;
factoring (especially for trading companies), which allows you to reduce the duration of cash gaps and maintain relationships with counterparties even if there is a lack of funds in the cash register and accounts;
revolving credit lines. This type of lending is especially beneficial when there is a constant need to replenish your current account in small amounts. Such a line will allow for the possibility of permanent financing, however, unlike one-time loans, it will not force you to overpay for funds that are not used in this moment. In addition, unlike overdraft, rates on credit lines more democratic.

Small business loans are available from many banks. Despite the fact that 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 for small and medium-sized businesses are, when you should take them out, and when you should refuse them, and what conditions you can get by contacting a lender.

Loan for small businesses: benefit or harm?

A small business loan can be a lifesaver or a life-killer, depending on the company's stage of development and its monthly turnover. It is important to understand the reality of paying off debt on time. IN 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 a bank at new project, and then found themselves in a deplorable state.

Here's some good advice: take out loans to develop your business only if you have an excellent order that will fully cover your costs of securing the loan. Although this does not mean, you should not take it to open a new company. Of course you can and should take it if you don’t have enough equity. But everything needs to be calculated in detail.

Many books about business say that you should never take out loans to start your own business. We need to look for a philanthropist who is willing 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 loan for business development?

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

Sberbank.
VTB.
Post Bank.

As you can see, these are banks with a large share state capital. You shouldn’t go to them not because the conditions there are bad. On the contrary, they are quite attractive. It’s just that the process of lending money can take a long time due to the highly developed bureaucratic apparatus.

Today, good conditions for business representatives are offered by:

Bank opening.
Gazprombank.
Raiffeisenbank.
Alfa Bank.
Bean Bank.
Tinkoff Bank.

I suggest you make your own choice in favor of one of the potential lenders. Below I’ll tell you what you need to pay attention to when choosing a bank. Based on this 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 out 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 parts.
Required documents.
Speed of application consideration.
Interest rate.
The need for collateral and what is accepted as collateral.

Based on these parameters, you need to choose one or the other. It is worth noting that all loans to legal entities require collateral and insurance. Security means collateral. This could be production facilities for operating companies or residential or commercial real estate for companies for whose development a loan is issued.

Conditions for issuing a loan for business development

Conditions for issuing vary depending on the bank. However, here are the average values:

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 providing 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 nature of doing business. Cash is also required upon registration. new organization. The client will need to pay various expenses in cash. In this case, it makes sense to apply for a cash loan on a bank card.

The money must be transferred to the card, since organizations are required to account for every penny spent. So you can take off cash at an ATM, and then provide invoices, acts and fiscal receipts. But it would be much better to pay by card non-cash, if possible.

I would like 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 apply for 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 one-time loan

A line of credit 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 provision necessary documents for the implementation of the tranche. In this case it is:

Details for transfer.
Agreement (if any).
Check.
Invoice, work completion certificate or delivery note (if available).
Other documents that the bank may require.

As for the one-time transfer of funds, it is carried out to the organization’s current account. 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 a company, then this equipment must be provided as collateral for the entire loan term. It must also be insured against damage, breakdown and other force majeure circumstances.

Terms of debt repayment

Repayment terms 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 a current account, then it is from it that the payment must be made. In the purpose of payment, indicate “to repay the debt”; you can also indicate the agreement number.

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 was very helpful. If you have any questions, ask them in the comments. I'll try to answer them. As for choosing a bank, pay attention to the one where the settlement and cash services. 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 contributions from outside. After all, even the most primitive business without investments requires at least some investments. Basically, to get on your feet, you need solid starting capital.

Pros and cons of a business loan

What to do if it doesn’t exist; will the dream of having your own business really remain a dream? There is a way out - these are credit programs.

Advantages of a business development loan

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

The owner of a grocery store takes out a loan in November to buy sweets (who doesn’t know - they begin to rise in price in December and the closer to the holidays, the more expensive they are), purchases a large batch (the larger the 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 selling this product for several years.

Lending to small and medium-sized businesses

Now almost every bank has a couple of credit programs for entrepreneurs. Therefore, if you decide to take out a loan, don’t 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 - you have a short period of activity, there is nothing to register as collateral, 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 a sawmill buys KAMAZ. He saved some of the money, borrowed some from friends, got some from the sale of his car, and the rest was given by the bank. Now he doesn’t have to hire trucks from outside, he quickly paid off his debts to his friends and has 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, entrepreneurs usually turn to banks when they want to reorganize production, expand it, change premises or hire workers.

Disadvantages of a business development loan

The main disadvantage is reflected in the proverb “if you take someone else’s, you give away your own.” Money is usually all invested, and getting any amount out of it is quite difficult (including morally). In addition, as I wrote above, not everyone is given a loan for business development so easily or at extortionate interest rates, because this is not lending to the population. At an industrial enterprise minimum term for obtaining a loan – six months, and for a service sector enterprise – three months. You will also have to provide a voluminous package of documents, However, various banks they 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 suffering 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.

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 purchase. Loans are useful for people who do not know how to collect and accumulate money to purchase expensive things - a refrigerator, TV, car and real estate.

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

Harm of loans

The main harm of credit for the Slavic population is the opportunity to expand their personal credit limit at a serviced bank or credit company. Having taken out a loan once and paid it off on time, or credit organisation extends the credit limit, providing more next time a large sum. In most cases, people will definitely take advantage of this opportunity by taking on debt from 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 credit system in Russia and the CIS, in comparison with Europe.

IN foreign countries, take out bank loans to buy real estate and pay low percentage on loans. Overpaying for the entire period of using the loan is no more than 30%, in case of taking out a loan for 20 years. That's why all Americans pay off their home loans, because each of them has the opportunity to buy the home they dream of.

But in Russia and the CIS countries, if you take out a loan for 20 years, you will have to pay 300% for the duration of using the loan! The bank has the right to change the conditions loan agreement unilaterally, which is written in the contract itself in small print, among dozens of clauses and conditions of the contract.

This is why loans are harmful for the Slavic population. In Russia the minimum credit interest ranges from 20-30% per annum, and in foreign countries up to 3%. The difference is noticeable at times.

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 don’t have enough money, you should think about whether you can wait or borrow money from friends. When purchasing household appliances, you will have to overpay their cost by 30% per year.

Conclusion

To summarize, 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 by 2-3 times the cost of purchases purchased on a long-term loan.

It should be understood that a loan is good in the case when the purchase purchased for credit funds covers all loan payments and still has a little left. An example would be buying an apartment, dividing it into several studios and renting them out.

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On “Afteshok” they write that there is no life without banks, that banks - and to be more precise, then bank loans- an integral part of modern economy. They say that our corporations were excommunicated from dollar loans, and we immediately felt the consequences in the form of an economic crisis:

Here are my thoughts on this matter.

1. If a person took some substances and then suddenly stopped taking them, he will feel ill for a while. An alcoholic who stops taking ethanol, for example, can get delirium tremens, and in a not-so-rare set of circumstances, even die. There is even such an ironic term - ORZ - “very abruptly stopped.”

It is clear that the disappearance of dollar loans was very painful for our economy. However, this speaks more against loans than for them.

2. At the level of a simple consumer, loans are not needed at all. Let's do a simple thought experiment.

Here we have two comrades with the same salary - Tranzhey and Jadon. Trangey took 600 thousand rubles from the bank and spent it on various necessary things. Jadon did not take out a loan.

Not at all. In just 5 years, Trangey will pay the bank in the form of interest the 600 thousand that he took from him, after which a funny situation will arise: Trangey and Jadon have the same amount of money in their pockets, but Trangey still has to pay 600 thousand, and Jadon doesn’t owe anything. That's it, Jadon is richer - Tranzhey can no longer catch up with him.

3. There is a myth that loans make large purchases (such as an apartment) more affordable. Unfortunately, it is not. There are fewer apartments than there are people willing to buy them, so the more affordable mortgages are in a country, the more expensive apartments are.

Simply put, both with a mortgage of 100% per annum and with a mortgage of 1% per annum, apartments will be equally affordable - just in the first case, a family with average salary you will need to save for them for three years, and then buy them with cash, and in the second case, you will need to buy an apartment right away, and then pay tribute to the bank for another 50 years.

4. Businesses don’t need loans either - for the same reasons why individuals don’t need them. Miracles do not happen: a plant that spends all its income on the development of production will be more successful than a plant that gives most of its income to the bank.

5. Loans can be compared to armies. Theoretically, the state does not need an army - soldiers only eat and train, without doing any useful work. However, if the state refuses to feed its army, it will very quickly be forced to feed someone else’s.

Same with loans. Maybe some plant could manage without loans... but the problem is that competitors take loans. And if the plant is defenseless, they will simply gobble it up with the help of dumping and similar techniques, for which they will take money from banks.

Therefore, to live with wolves is to howl like a wolf. Either you participate in this race, which is unfavorable for everyone, or you obviously lose. If for individuals and small businesses to live without loans - good strategy, then for big business Waiving loans is often simply impossible.

In practice, this option immediately has so many pitfalls that it is unlikely that even the most desperate economists will now recommend such a radical solution to the problem.

At the same time, the world financial crisis no one canceled. Apparently, what we are seeing now is just the first rumble of thunder before the arrival of the storm. And when the approaching storm shows its destructive power, it will be possible to start talking about a complete ban on loan interest in more detail.

7. Do I want to say that banks are not needed? Of course not. It is unlikely that anyone will deny the benefits of, say, cashless transfers and ATMs. Various types of banking instruments that allow you to smooth out the seasonality factor and insure risks are also obviously useful.

8. If you have a large (or medium) business, you know better than me who the bankers are and why you are forced to cooperate with them.

If you have a small business, or if you are a private individual, I still dare to give you advice. Accept as a fact that living “on your own” is usually more profitable in the long term than living “on credit”: for the same reasons that refraining from going to the casino is usually more profitable than regularly betting your earnings there.