fast small business loans

fast small business loans
Large corporate customers are divided between the banks and the competition for them is very tough, so all credit institutions have to take a closer look closely to the less reliable potential borrowers - small businesses and entrepreneurs without a legal entity. The costs of credit evaluation and design of the loan are substantially the same as in lending large customers, and the amount is substantially less so that this direction was initially not too attractive. At the same time that the business was profitable portfolio of small loans should be at least $ 3.5 million.
However, lenders can significantly reduce costs by simplifying the procedure for evaluating the borrower. This way, some banks have already gone - for example, the Bank of Moscow, Impex, Loko-Bank, International Moscow Bank, Probusinessbank, Russian Bank for Development, offering a new product: quick loans for legal entities. Unlikefast small business loans to enterprises, they are a mass product, excluding an individual approach to the borrower.

"The fundamental difference between fast small business loans from traditional lending is that the bank is not so detailed check the solvency of potential borrower, - says deputy chairman of the bank" Stroycredit "Sergey Rybin - so, the credit institution will not be a deep understanding of the sources of repayment of loans, study in detail the debtors and creditors of the company, to analyze cash flow, business plan, feasibility study. " fast small business loans



Decision-making system is also simplified - for the approval of the application is not required to collect on the loan committee meeting. The banks that offer fast small business loans are often used scoring model estimates the borrower has received wide application in issuing consumer loans. This allows you to minimize the time for consideration of the application and to reduce bank charges to a minimum. Thus, the scoring program used in Probusinessbank, Impexbank, Loco-bank. According to the deputy head of the commercial lending Russian Development Bank Alexey Popov, his credit institution will also create their own scoring system (the bank plans to launch a small business lending program in the next year). However, this process is rather laborious, despite the fact that the principle of operation of such models looks simple: each parameter is assigned a specific client application rate and their amount should exceed a certain threshold. The coefficients are assigned on the basis of statistical data that has to save the bank. Necessary to trace what options are most common for good borrowers, and which - for the bad. "First, we will use the expert way of assessing the borrower, that is, information about it will analyze loan officers, - says Alexey Popov - establish a scoring system will be able not earlier than a year or two."

However, he said, the assessment of the solvency can outsource. Such services, for example, the company offers "Experian-Interfax". But in this case, the bank will have to rely on the skills of the organization: a credit institution tells her all the data about the borrower, and outsourcing firm provides a turnkey solution.

A cursory review. Risks associated with rapid credit, of course, higher than fast small business loans because the borrower is evaluated surface. "According to statistics, about 80% of small businesses under the age of 5 years, eventually closed due to bankruptcy," - complains Alexey Popov. But the profitability of fast loans is much larger: the banks compensate for the risks of high interest rates that can reach up to 30% per annum in rubles.

But despite the profitability of this business, today it is developing a small number of banks. "Such services are still largely provide cooperatives and the informal sector, - says Director of Small and Medium Business Bank" Express-Volga "Sergei Samoilov, - however, we expect that most of the shadow economy after some time will be on rails civilized."

"fast small business loans requires the development of specific technologies and very careful costing of these services, - says deputy chairman of the Loco-bank Andrey Spivakov. - As a rule, small and medium businesses as compared with large companies has slightly streamlined accounting, which is why working with him is much more difficult. "A significant proportion of medium-sized firms accounting is either "head owner" or "on the knee", that is irregular and so low that the financial analysis carried out is extremely difficult.

To enter the market fast small business loans for legal entities, need three main components: technology, experience in the field of mass credit sales network. According to Andrey Spivakov, is costly and time-consuming process, and if the bank is focused not on the long-term development, to obtain high current income, then bet on the development of rapid-lending to small and medium-sized businesses do not make sense.

"Products that provide quick decision on lending to small amounts, are one of the priorities of the modern banking business", - said the deputy chairman of Impexbank Alexey Korovin. "We needed to create new lending technologies, train experts to carry out promotional activities - adds deputy chief of the Moscow business center Probusinessbank Vadim Dzygar. - Nevertheless, the experience is clearly a success. These products are very much in demand by small and medium-sized companies, and we plan to continue to develop this area. ""For the future of the business, - said Alexey Popov - sooner or later, technology will quite clearly allocate outsiders, especially since the law came into effect on credit history."

However, in the opinion of management of lending Absolut Bank Oleg Dmitrienko, quick loans are a marketing ploy, designed to attract more customers. "We also give out loans under the simplified procedure, but small business is initially easier to measure - says the banker - as if for a loan becomes large construction company, on its analysis take 2-3 weeks, and if we come to a private entrepreneur, who two stores, the term evaluation is automatically reduced to a few days. "