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Special Programs For The Business Start Up

Special programs for the business start up

If business works already at least six months then there is a possibility to take a loan in other banks under the joint program from the European Reconstruction and Development Bank. Rates under such programs start from 17-20 % in a dollar or euro currency. If means are necessary on purchasing of the equipment, real estate and a car, it is necessary to bring to 30 % of advance. The maximum crediting period is till five-seven years, a credit amount ? to $3-5 million or their equivalent.

Means are given by many banks, both on replenishment of circulating assets and on purchasing of basic funds. However, if in the second case it is possible to count on the maximum credit period for “injections” in circulating capitals banks give money only for a year-two.

Also in all cases it is necessary to provide the money received on credit with liquid pledge. And if the equipment, real estate or a car is on credit acquired, it can appear insufficiently and it is necessary to pledge something else ? real estate or the car. Moreover and at that cost which will be exposed by the bank appraiser.

Bank?s severe selection:

For reception of the credit the businessman should give impressive quantity of documents: from the registration certificate and the inquiry on movement of funds under bank accounts to the reporting for the last half a year-year and the plan of financial receipts for the term of credit reception.

New or “developed” business it is even more difficult: the bank demands the developed business plan which will explain why these goods or service will be on sale is better and will make profit in a year-two. It is very probable that to the borrower beginning new business will suggest to finance on 25-30 % of the project for the personal means and the remained 70-75 % ? at the expense of the credit. Will analyze cost efficiency of the project captiously ? the decision depends on it. If the bank comes to a conclusion that profitability of the project won’t allow the borrower to serve the credit no credit will exist basically.

The estimation of mortgage property is conducted by bank and paid by the borrower. And it is quite probable that assessment value of apartment, office or the equipment will be essential below expected. So banks aspire to secure themselves in case of credit non-payment ? that even at urgent sale of pledge on knockdown price money for its repayment has sufficed.

Some banks are ready to support the businessman-borrower ? offer so-called “credit vacation” for using first year-two the credit. During this period the client can not repay the credit indebtedness.

The times when governments have been flooding people with all sorts of grants have passed. At least for a while. But that does not imply that you must forget the idea of getting small business grants.

Everything is doable with nicely balanced attitude; small business grants including.

Visit this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This info will help you to get small business grants or any other grants easier.

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