Quite a few entrepreneurs need bank loans. In small business, it can be difficult to get credit - many banks consider it risky to lend to small companies, especially if they have not been on the market for long. However, if you competently approach the choice of a bank and provide all the necessary documents for obtaining a loan, then a positive result is very likely.
Instructions
Step 1
Not all beginner entrepreneurs manage to organize their business using only their own investments or the funds of relatives and friends. Many resort to bank loans. Small business loans are also needed at the stage of development - for further successful growth.
Step 2
First of all, you need to calculate what approximately the amount you will need to develop your business, and start looking for banks that can provide such an amount to small businesses. All more or less suitable banks should be consulted. As a rule, some banks will "disappear" for you right away, while the others will be able to submit documents.
Step 3
To get a loan for a small business, you need to meet a number of necessary requirements and provide a certain package of documents. To obtain a loan you need:
1. to prove the implementation of entrepreneurial activity for 6 months or more from the date of registration (ie it is virtually impossible to get a loan to "start").
2. have a positive credit history of the borrower or the absence of any credit history.
3. have confirmation of a stable income of the company.
4. have collateral.
5. have guarantors (not required in all cases, but quite often).
6. provide a business plan.
7. disclose financial and tax statements.
Banks may also have other requirements.
Step 4
Consideration of an application for a small business loan usually takes place in a period from 3 days to two weeks. The bank can notify you of a positive decision earlier. With a positive decision of the bank, it remains only to negotiate the interest rate and loan repayment period, as well as conclude an agreement.
