small business loans florida

small business loans florida is significantly different from lending to large companies. In this article the analysis of loan products and terms of lending to small businesses - the pros and cons.
Differences in lending to small business loans florida



The main difference in approach to lendingsmall business loans florida - on the MB, as a rule, banks are standard products with clear criteria and conditions for selection of credit borrowers. In cases where at least one of the criteria is not maintained or bank refuses to loan or project goes to the head office, where a positive decision is unlikely. Here are some examples of possible criteria:
Equity capital management accounts shall not exceed the amount of the loan; in calculating the credit limit personal loans accounted founders (Promvyazbank).
The small business loans florida amount shall not be less than 30% of the equity of management reporting (Uralsib Bank)
The share of revenue management reports should not exceed 30% of the total revenue of the company (Loco Bank)
Underwriting (risk management), as a rule, has a veto in lending MB. In other words, if the risk manager speaks "against" when considering the application of big business, then be voted and the decision taken by the majority. At the same time, the application of MB in such a situation does not even reach the credit committee - the refusal to follow automatically.
Required legally guarantee all affiliated companies, even if a lot of them, or they are "empty" (Uralsib Bank).
Founders must have a permanent residence permit or a temporary registration at the place of treatment in the Bank (Sberbank).
Monthly payment on the loan to maturity shall not exceed 30% of the average revenue (this condition is applied in many banks, only variruyutsya ratio).
Remote location pledge shall not exceed 120 km away from the loan unit (Master Bank). Typically, this distance should not exceed 200 kilometers.
When checking on the safety line small business loans florida is analyzed more closely; Many explanations can not be accepted as arguments "for". For example, the founder discovered the transport tax debt -for MB high probability of failure without explanation, from a major borrower in this situation is likely to take the explanations and after repayment of the project "miss." So it is with the overdue loans. It is believed that the business and credit history of the owners and directors of small business loans florida and describes the organization itself.
Annual interest rate on the loan for big business is from 11% to 16% for small, usually between 15% and 19%.
Desires do not coincide with the possibilities

Despite the fact that the credit market in the past two years, banks offer a wide range of credit products for small business loans florida (auto loans, investment loans, commercial mortgages, etc.) to get it quite difficult. The main problem lies in the fact that small business loans florida is rarely management reporting in the form in which the bank needs (article about the management reporting is available here - http://www.riskovik.com/riski/platezhnye/page2/). Notebooks from the hands of very few people want to apply, and the contracts and payment documents, as a rule, no. As a result, small businesses hard to confirm all declared income.
Further, small businesses tend to be counting on long-term money, which can afford only the big banks (Sberbank, Raiffeisen, Uralsib, Promsvyazbank, etc.). But the bigger the pot, the more standardized methods of its evaluation of the reliability of the client, almost equal to scoring. Generally, the smaller the decision involved in the human factor, the greater the risk of rejection, since potential borrower unable to explain certain circumstances, regard the bank as risk factors. The principle of "do not shoot from the hip" to small business loans florida  rarely applied.
It is worth noting that despite the fact that banks periodically "throw" to the market new credit products, the business gets accustomed to them is bad enough. Since they all boil down to one thing - a loan in exchange for a pledge. An exception is the Raiffeisen Bank, although there do not count on great loyalty - risk management in the bank is not weaker than the others. (Dear readers, please do not regard this article as an advertisement!).
For example, only in the Raiffeisen bank there are loan products like:
1. Financing Contracts:
If the client has a valid contract for the supply of products (services) to buyers (customers) having known in the country (region), then the purchase of the suppliers of goods required for the performance of this contract the Bank provides financing without material support to 8 000 000 and up 80% of the contract value. Buyers may be: state. structure, state. corporations and their subsidiaries, major retail chains, large manufacturers, etc. Bank customer negotiates and structures deal depending on the type of contract - for the framework contracts can be offered revolving credit facility for up to 24 months with an inner maturity tranches (defined as delivery contract + the payment period the buyer under the contract + 2 months - for delays in payment ).
If under the contract provided for a limited / specific number of deliveries at specific amounts, it is possible to consider the non-revolving line of credit the prior two years, where the term is limited to the term of the contract and full payment can be provided at the end. The package of documents on such loans is easy. Timing of the application at the operational provision of documents - up to two weeks. Loan fees for unused and no limit.
2. Credit to 5 million. without collateral:
Perhaps unsecured loans up to 5 million. For up to 2 years. It uses a simple set of documents in a short time considering the application. The credit for working capital financing, refinancing loans from other banks for investment purposes. Criteria - doing business within 36 months., No loss of the borrower (group of companies), the presence in the commercial real estate property. No commissions.