SMALL BUSINESS LOANS. What to look for?

Small business owners often complain that take out a bank loan to them is always difficult. However, this explanation is. Bankers often denied loans even banal due to lack of a clear strategy in the company development, or when the financial situation is rather weak or unstable.
Despite the difficulty of obtaining loans, business lending market continues to grow by an average of 10-20% per year. Number of disbursed funds also increased.

Also, despite the increase in the credit market, demand still outstrips supply. Because of this, even large successful businesses often receive waivers. What can we say about the small self-employed?
Because of what is happening?
Most likely due to the small proportion of small businesses in the structure of Russia's GDP. Small business does not exceed 20%, while in developed European countries, the figure is 50-70%. Such a low percentage in Russia, of course, is the lack of financing from banks. Here is such an interesting moment in the economy of modern Russia.
What banks are looking for loans to small businesses?
Here we may note a few highlights:
The financial position of the company.
Credit history.
Industry in which the company operates.
Waste of net profit.
Inspection of the place of business and communication with employees.
Consider each point separately:
1) The financial situation of the company.
This is perhaps the most important thing for any loans. Here, the following actions are banks:
Familiarization with the company's financial position.
Viewing financial records.
View the profit and loss account.
Familiarity with the registration, statutory and other documentation.
Conclusions of revenues, expenses and taxes.
A decision is made as to whether the firm to repay the loan or not, and what the maximum amount of money can be issued.
2) Credit history.
It is also undoubtedly an important stage of any credit. And when it comes to small business, here looks not only the credit history of the organization, but the credit history of the business owner. If it is your personal credit obligations copes badly, then most likely, and at the head not with the best hand will fall to the bank. Give credit excellent company with high rates not only because its leader has a bad credit history.
3) industry in which the company operates.
Of course, it does not pay attention to all the banks, but for some this is very important. The site of these banks is usually represented by a strict list of industries, small businesses operating in that will be able to get a loan. In general welcomes the following:
Wholesale.
Retail.
Retail services.
Production.
4) Waste of net profit.
It is also an important indicator. If the owner of the company reserves all the money and did not think about improving and expanding, it says that he does not believe in the future of their business.
If, on the contrary, bought furniture, made investments, increased staff, etc., such a company becomes attractive to the bank.
There is also evaluated the effectiveness of investments.
5) Inspection of place of business and communication with employees.
Bankers can often come to the organization itself, to:
Look at the overall appearance.
Rate furniture, facilities and interior.
Talk with customers.
Talk to employees.
Typically, this is the final stage.