To take out a loan for an enterprise is not more difficult and not easier than for an individual. Here the lending procedure is somewhat different, which means there is a different package of documents, and collateral, and conditions.
Instructions
Step 1
Currently, almost all commercial banks provide loans to legal entities. Loans are issued on a contractual basis, subject to the principles of target orientation, urgency, repayment and repayment. The purposes of lending to enterprises can be very different: from meeting the need for working capital (short-term loans) to investment projects, including the construction of industrial and non-industrial buildings and structures (long-term loans).
Step 2
As security for a loan to an enterprise, a bank may require a pledge of property belonging to the organization on the basis of ownership, or other valuables of a potential borrower, a guarantee of a legal entity or a municipality, or a pledge of third parties.
Step 3
Upon initial contact with the bank, the company must provide legal and financial documents, including an application for a loan, a business justification for a loan need, a business plan for a project (if necessary), financial statements, documents characterizing its financial discipline, and other documents on the loan officer's request.
Step 4
Before deciding on a loan, a specialist assesses the financial condition of the company. For this, a number of coefficients are analyzed: liquidity, solvency, turnover, the ratio of equity and borrowed funds, provision with own circulating assets, etc.
Step 5
In addition to the financial condition, the quality of the provided pledge or surety is assessed, the presence of any negative information regarding the company from the tax, law enforcement agencies, and other banks. After all the information about the potential borrower has been collected, the credit commission makes a decision on granting a loan.
Step 6
If a positive decision is made, the manager draws up a loan agreement, which specifies the conditions for granting a loan: interest rate, loan term, frequency of payment of principal and interest, purpose, etc.
