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Small-scale Business: Where To Get Money To Start It?

The sharpest requirement for credits is felt by small enterprises which only start to work in the market, their need in extra resources is satisfied hardly on 5 %. They from the point of view of banks ? the most bad borrowers. They do not have experience, there is no lien, and there are turn-overs, stories of success or at least no normal reporting. But there is a risk of that anything similar at the beginner so never and will not appear. And still banks have a chance to run in milliard market of starting micro financing ? competently having built in a chain of financial intermediary between the largest foreign both investors and the various microfinancial organizations.

With bank crediting of the enterprises of a small-scale business businesses as of today are marvelously not bad. Judging by the statistical data resulted by an every second, addressing to conferences “Crediting of small and average business” requirements of a small-scale business for bank credits are satisfied approximately on 30 %. If banks, even by the roughest counts, have run in third of market, means, development of other two thirds is a trick and time. Credits to small enterprises have ceased to be the piece phenomenon.
Many problems still remain unsolved, for example the mortgaging legislation, a reservation request to banks, quality of the reporting and a pledged security of businessmen, but in portfolios of regional banks credits to small enterprises already take from 40 to 90 %. And leaders of a banking market go to this business, understanding that should be present at intensively developing segment and to participate in growth of the enterprises which in the long term will increase base of corporate clients and become consumers of other banking services.

On the market of financing of small and average business there are super giants of a banking market, first of all mean. The programs in the market develop “daughters” of foreign banks. With programs of refunding of the banks crediting a small-scale business, the European bank for Reconstruction and Development works, and now Deutsche Bank KfW which has closely become interested in the small-scale business development and money crediting.

Therefore for the further forward development of crediting of small business it is necessary for banks to find technological decisions of two questions: resource base and minimization, distribution of risks.

However everything that is told, concerns only crediting of the enterprises, which already have what to show to bank from the point of view of the reporting, pledges, results of the activity. Different banks demand presence of such vital history of the enterprise for from 6 months till 2 years. Financing those who start and, maybe, even more desperately is in great need of extra resources, banks, as a rule, do not dare. The requirement for starting bank crediting and crediting of individual private businessmen is satisfied hardly on 4?7 %. But hardly in the near future banks will directly participate in financing of starting stages of development of small enterprises and individual businessmen.

The days when governments have been flooding people with all sorts of grants are over. At least for some time. But that does not mean that you should forget the idea of getting small business grants.

Everything is doable with smart approach; small business grants including.

Go to this blog for more helpful tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

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