Unsecured loans for small businesses: conditions for obtaining

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Starting up a business requires initial capital. There will be costs for renting or acquiring premises, purchasing equipment, raw materials, salaries for employees. But not all start-up entrepreneurs have the necessary amount. In such cases, unsecured loans for small businesses are issued. Details about their design are presented in the article.

Advantages and disadvantages

Every service has pros and cons. Unsecured loans for small businesses are no exception. The main advantage of the service is the lack of security. But this is fraught with some nuances. After all, no bank wants to allow the loss of their funds. Therefore, such loans are issued for a short period. In addition, the amount will be much less.

Unsecured loans for small businesses have a higher rate. The term for consideration of the application is shorter than for loans with collateral. For a decision is not requiredverification of collateral: it is required to perform the analysis procedure, documents, evaluate the object. If the answer is positive, you can immediately proceed to registration.

For what purposes is it issued?

To determine the goals at the time of issuing a loan, entrepreneurs are guided by special rules. They are set for each product in each bank separately. Small business loans without collateral are issued for various purposes, but always for business, and not for personal needs. The entrepreneur can apply to the bank if necessary:

• improve the financial condition of the enterprise;
• buy premises;
• realize investment goals;
• increase fixed assets;
• introduce innovative technologies;
• upgrade the production line;
• increase in turnover.

A loan can be issued to attract customers, open a new direction, refinance other loans. Funds may be required to improve energy efficiency, productivity. Unnecessarily, loans are unlikely to be approved.

The nuances of obtaining a loan

In practice, no newcomer has a chance of getting a loan from a bank unless collateral is provided. The reason for this is that the enterprise must have a cash flow for its activities. The bank analyzes the movement data to draw conclusions about the stability of the business, its prospects.

Employers who: are more likely to get a loan

• work no longer 1year;
• have balance sheet stability;
• successful in transactions with partners.

This is confirmed by documentation. Under such conditions, a decision is usually made quickly. Failure in this case is minimized.

Conditions

Loans for small businesses without collateral are issued under the following conditions:

• age 23-60;
• permanent or temporary registration;
• guarantee;
• doing business from six months.

Before applying for an unsecured loan for a small business, you should familiarize yourself with some of the nuances of its design. The peculiarity is that the borrower will be an organization, a legal entity. There are loans for small businesses without guarantors. But in this case, some other conditions will apply. Compared to individuals, there are not as many small business loan programs in operation.

Sberbank

Loans for small businesses in Sberbank are in demand. A lot of entrepreneurs turn to this institution. The bank's website has a section on small businesses. Several products are offered to customers. The list includes refinancing, lending for the purchase of equipment and machinery, unsecured loans for various purposes. The bank has a lending incentive program.

What are the rules for lending to small businesses in Sberbank? For example, "Business - Turnover" is provided with a maximum period of 4 years, the rate is from 11.8%, and the minimum amount is 150 thousand rubles. This loan cantake advantage of individual entrepreneurs and small businesses whose annual income is not more than 400 million rubles. The site contains a list of required documents. A decision is made after analyzing the financial and economic sphere of the business.

Alfa-Bank

Preferential loans to small businesses are issued by Alfa-Bank. Entrepreneurs can get a loan without collateral, collecting documents, online. For this, the "Stream" service operates. For individual entrepreneurs and small businesses, a “spare wallet” is offered in the form of an overdraft facility.

The rate is 15-18%. New clients can claim to receive 500 thousand rubles - 6 million. And if there was cooperation before, then the amount is 10 million rubles. Opening a limit costs 1% of the amount.

For medium-sized businesses there is express lending. There are offers on the security of property rights. At the same time, the conditions for granting loans for all clients are individual.

Rosselkhozbank

On the site you can find sections for small and micro businesses, as well as for medium and large. Loan applications are accepted online. There is a convenient function of communication with a specialist in the form of a callback. "Rosselkhozbank" takes part in supporting small and medium-sized businesses, so customers are offered various programs on favorable terms.

"VTB-24" and "VTB Bank of Moscow"

As in other organizations, the bank's website has a section on business. There are several loan programs for small businesses: express, negotiable and investmentprograms. There are also loans for business development, for the purchase of offices, warehouses, retail facilities, targeted.

Maximum disbursements for all small business loan programs vary. But usually they are up to 10 years, and the rates are different - 13.5% (Business Mortgage), 11.8 (Investment and Negotiable). Applications are accepted through the website.

Tinkoff Business

This bank is actively working with small businesses and individual entrepreneurs. Clients are offered overdraft and standard lending. You can apply for a loan on the website. After filling it out, a specialist gets in touch and requests documentation.

To get a business loan, you will need a TIN, an extract from the Unified State Register of Legal Entities, PSRN, a tax return. After receiving the documentation, the bank makes a decision on issuing a loan. If the decision is positive, the contract is executed.

Lending rules

Lending programs are set up so that credit risks are minimized. And they concern the borrower and the lender. The risk borne by the client relates to the inability to repay the loan and interest in a timely manner, which leads to bankruptcy.

The lender's risks are related to the terms of the loan. It can be long-term or short-term, depending on the level of risk. To mitigate risk, lenders:

1. Study the borrower, credit history, perform an analysis of the financial situation.
2. Get acquainted with the pledge (if it is provided),payment sources.
3. Analyze risks and how to address them.

Now almost every modern bank has programs for business. Customers should consider the offers of several banks, and then choose the most advantageous option.