Business Credit1. Credit for business "from scratch" This is a case where you could not find investors or partners who would have sufficient funds to start a business. This credit provides not every bank. Normally, to get money, the employer must provide a detailed business plan, confirming the profitability of the project, as well as liquid collateral and solvent guarantors. Risks in this case are very high, and therefore, if the bank will agree to lend you may take for the service high interest rates. However, now to get a loan to start a business is almost impossible, so some experts recommend the use of conventional consumer credit for individuals. On the one hand such a loan - it is what you need: Sufficient time (usually up to 5 years), there is no need to provide collateral, the funds can be used for any purpose, without accounting to the bank. While on the other hand, consumer credit to start a business is not always suitable, since it rates, generally higher, and the amount, on the contrary, than. Besides often for consumer credit, banks require collateral, so you have to seek the support of a spouse or business partners, which is not always convenient. 2. business credit for working capital This loan can be used not only to pay for current business needs, but also for business expansion: the purchase of equipment, construction and reconstruction of production facilities, purchase of materials, raw materials and goods for sale. Enterprises wishing to replenish working capital through a loan should work for more than 3 months (under the terms of some banks - from 6 months), occupy a niche in the market and have a steady income. Most likely, the bank will provide the security of property, and, perhaps, the guarantee of a legal entity. 3. mortgage credit lending Mortgage is designed for those businesses who want to increase production area. Credit granted bail estate ( purchased or otherwise). Particularly important for a bank customer's solvency, so the financial condition of the enterprise will be carefully checked. In addition, the borrower must pay the first installment ( 30% of property value), as well as pay for insurance and assessment of the collateral. 4. investment business credit Loans for investment purposes offer businesses that have reached a certain level , and now they want to implement a new project. Sometimes investment lending is also used for the development of an existing business or opening a new one. Thus, the loan funds can be used only on certain investment program: the acquisition, construction, renovation or modernization of fixed assets, etc. Depending on the terms of the recovered loan and overdraft line of credit. credit Loan funds are available immediately in full, usually under a high enough percentage. In most cases, the borrower must provide collateral property and make the first payment. Sometimes requires additional guarantee. Monthly repayment, according to classical or annuity scheme. Average loan term of 5 years. line of credit Credit facility tranches are paid (in part) for a certain period, or if the client. For each client set credit limit, which is determined by taking into account its financial position, solvency, the presence of collateral and other factors. There are two versions of the credit line: renewable and non-renewable. In the first case of full or partial repayment funds available again, and the second - to take the loan funds can not be again. The order of repayment may be different, depending on the needs of the client (the end of term lending, quarterly, etc.). Borrower must provide collateral property. overdraft This loan allows immediate payments with a deficiency or absence of funds in the account of the client. Perhaps overdraft without security or the security of property. Repayment is automatic, from the proceeds. Interest is calculated on the amount that was actually used. The credit limit is determined by the speed of funds on account of the company for 1-3 months. Results Many business credit of lending, so choosing the right and sometimes you can get confused. To prevent this happening, considering the proposals should focus only on those that correspond to the potential client and help to realize its objectives. So if high turnover of funds and it needs fast access to credit, she should use overdraft. In contrast, businesses that have turnover of funds takes a long time to use the overdraft impractical suits them credit for working capital line of credit. |
|