build business credit

Any entrepreneur quickly begins to understand that without the leverage to achieve enterprise development is almost impossible. In particular, this statement applies with regard to small business, where promotion may require significant in comparison with the individual activity means. To solve the problem, you can get credit for business development. In our new article we will try to examine the situation with lending to small businesses, entrepreneurs assess the chances for a build business credit.




Bank conditions build business credit
The process of getting a build business credit is time consuming, but not impossible. Observing the specific requirements of the financial institution, almost any business can expect to receive loans. Perhaps the most important condition for obtaining permission of the loan is considered term of the company in the market. Most of the banks as a guide selects firms that operate at least 2-3 years. Is also quite impressive segment of financial institutions considered as a candidate for a leveraged companies operating for at least six months. If the business there is less time left to try his luck businessman presenting bank employees convincing business plan, which will outline the next commercial prospects of the company.

build business credit
Credit for business development, as a rule, is targeted. The company may use the funds for the purchase of equipment, working capital financing, acquisition of goods, diversification of production. This list is not exhaustive, but in any case, the costs should be directed to the development of the company.

Size loan amount often calculated on the basis of the working capital of the enterprise, for the year, half, quarter. According to statistics, the average size of the loan amount for small business development varies from 300 thousand to 1 million rubles. The maximum limit is close to 40 million rubles.

build business credit development: documents and guarantees for bank
Expect to receive a loan can be in the following conditions: • The loan must be secured by real or personal property; • to the financial institution must provide tax, accounting and financial statements of the company; • some banks as a condition of participation provide guarantors.