For many aspiring entrepreneurs, a business loan is the only way to start a business. Of course, this is risky, much easier, for example, to sell a car. However, not everyone has it. What is the procedure for obtaining a loan to start a business?
Instructions
Step 1
As a rule, most banks now offer business loans. Naturally, each bank has its own lending rates, its own nuances. It is worth familiarizing yourself with the terms of loans for business in different banks before choosing something: what if there are better offers? Typically, business loan rates range from 12 to 21% per annum.
Step 2
To obtain a business loan, you will need the following documents:
- application (as a rule, in the form of a bank).
- documents on registration of an individual entrepreneur or legal entity.
- a clear and detailed business plan.
- financial statements, profit and loss statement.
Of course, each bank has individual requirements for documents, there is no clear list. However, the listed documents are likely to be required from everyone.
Step 3
To obtain a business loan, you should be ready to provide collateral for property, for example, real estate, goods, equipment. The bank will also request documents for this property and conclude a pledge agreement with you. Most banks also require you to find one or two guarantors, they can be both your relatives and legal entities. After reviewing your documents and making a positive decision on the issuance of a loan, registration of pledge and surety agreements, you will receive a loan.
Step 4
The bank can always refuse you a loan - this is its right. The reasons for this are most often the following:
1. carrying out entrepreneurial activity for less than three months.
2. lack of a clear and competent business plan.
3. lack of collateral, guarantors (sometimes it is necessary).
4. low profitability of the future business. Sadly, banks are likely to be reluctant to lend for non-profit projects or projects that generate little profit.
In such cases, you should not be upset - there are many banks, and almost all of them offer loans for business. If one bank did not give it, it would give it to another! In addition, funds for business can be found using other sources, often more profitable than a bank loan.
