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The Business Plan For Obtaining A Credit

The bank always produces the credit under the business plan; it should be assured that you soberly estimate the possibilities on credit cancellation. The Business plan demonstrates that you did calculations and represent a real pattern of the business.

Therefore each borrower makes the business plan for credit obtaining that is a bank indispensable condition. The Business plan for credit obtaining differs from the business plan for the investor the several moments:

* the business plan for credit obtaining should show need of the enterprise for financing at a given time and on exact a definite period;

* the potential borrower, wishing to obtain the credit under the business plan should prove to bank a utility for the enterprise of usage of extra circulating assets;

* the business plan for credit obtaining is oriented on showing to bank or other creditor high level of solvency of the enterprise, so – possibility to extinguish the credit and percent for its usage.

The bank, as a rule, won’t be interested in the details of the business plan which do not have the direct relation to solvency and level of liquidity of the enterprise. It will be interested, first of all, in presence at the enterprise of serious pledge or the guarantor.

If the first condition is fulfilled, the accounts payable question will be studied. It will be interesting to bank, and how many owe the enterprise, whether there is a delayed accounts payable and when the business was formed, a tendency to growth or to debts lowering.

The following question of the expert of bank will be about an enterprise debt receivable. The bank security police will sometimes inquire and try to learn what part from a debt receivable is doubtful to resetting.

To obtain the credit under the business plan in bank is normally enough durable procedure which demands preparation of the whole packet of documents, the big expenses of time and strong nerves. All this time bank demands one document behind another, requirements to the necessary documents can change even in the course of transaction design. At first it is necessary to deal only with the credit expert, then with the chief of credit department and in case the bank carries the credit to a category large and with a manual of separation of bank.

The total of the credit produced by bank normally makes no more than 40-50 % from cost of pledge which is defined by an expert evaluation. Advertizing conditions of obtaining of the credit normally strongly differ from the real. Often happens so that in the course of obtaining of the credit the bank “suggests” the enterprise to extinguish still some payments and additional collections for obtaining of the banking credit. Collections not advertized by bank for credit obtaining can make 5-10 % from the credit total.

It is very important that government, despite this crisis is not leaving to help small businesses. And small business grants can be a real helper today.

But, of course, you should understand that today the fight for small business grants as well as for other kinds of grants has become more fierce. This is logical – more businesses need them. So before you start your fight for the small business grants, please check out this blog for more helpful tips about grant industry.

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