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How To Take A Loan For The Business Start Up?

Jack Danny got tired from constant change of a place of work and he has decided to begin the business. Living in suburb, he saw that in district all time there are faults with deliveries of the bakery goods. Here he also has decided to open a bakery. However, having constituted the business plan, Jack has understood: he can cover with own forces only 15-20 % of all costs. Therefore it was necessary to go to bankers.

In words all banks were ready to give money and as has reached business ? in one have told” unpromisingly “, in the second they at all don’t credit such business branches and in another the bank agreed to borrow a maximum of 70 % of the necessary sum. Having thought, I have offered partnership to one of friends, and missing 50 % all of us took on credit. However, we will try to extinguish it as soon as possible because to give every year 35 % to bank ? it is very unprofitable”, ? Jack tells.

If it is necessary to receive pair of hundreds thousand dollars for a business “start”, really, it is necessary to work fairly for it. Someone from banks agrees to give the credit of the state of emergency, working exclusively in service trade and someone ? under export-import transactions and someone ? to only non-polluting business.

Besides, the bank will demand liquid pledge and will credit, most likely, under the high rate and also foreign currency credits are accessible only to those who already performs export operations.

Whom they give money to?

From the first thirty of banks small-scale business crediting is declared at least by half. But beginning businessmen in the ranks of the clients are ready to see only few of them. However, in the first case the specialist of bank has refused to name even rough credit conditions. All dares exclusively in an individual order, after project studying.

In one of the banks the credit is given both to start new business and on expansion of already working one. The maximum amount ? 0,5 millions dollars can reach a crediting period of seven years. The rate is attractive enough: 11,75-14,5 % in dollars and euro. Unconditionally, pledge is required: the real estate, a car, the equipment, even the deposit will approach. Though, the kind of provision and definitive conditions all the same depend on that how much perspective credit managers will consider the business project.

Other banks agree to credit, if business works not less than one-two years, a minimum ? half a year. By our estimations, in crediting of new clients today actively and purposefully are engaged no more than 10 banks. Business startups “only are interested to credit the majority in the event that the company and the businessman already have another, core business”, ? the head of department on development of small and average business explains.

It is very important that government, despite this recession is not abandoning to help small businesses. And small business grants can be a real helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants has become harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please visit this blog for more
details about grant industry.

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