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How do I get a business loan from scratch?

The axiom of trade – every business needs financial investment. This is especially true in the early stages of the activity. In order to make money implementing a business project, you must first invest in it. Big projects require big resources, small ones – a little less. But in principle, it is impossible to get rid of the expenses under normal conditions. See for the scoop

Well if a novice businessman had some money. And if not, there are several ways you can legally fund. One of them is to get a business loan from a bank. The conditions should be relaxed compared to the usual conditions. Otherwise, the successful start of the project cannot be seen. But here there are certain subtleties and roughnesses.

Commercial banks only grant loans if they are interested


Accrued interest must be paid back on general terms or preferential terms, but in addition to the loan itself. If the business is successful, such a financial loan will pay off no matter how high it is.

And if not? An unsuccessful businessman not only loses his business, but also his property. And then it remains a debtor with all of the resulting legal ramifications.

It should be noted that for a bank a business development loan is considered a risky transaction. There is no unconditional guarantee that the newly arrived retailer’s loan for starting a small business will not be fundamentally new. In the worst case, an unfortunate entrepreneur can file for bankruptcy after a period of time (mainly one month) and refuse to return the funds received to the bank if the option of ruin looms.

And yet, how do you get a business loan from scratch? This is no more difficult than getting a regular loan for training, improving housing, buying a car, etc.

Mandatory conditions


Despite these risks, credit is preferred. Small business conditions are slow but still changing. Taking out a new business loan is possible under certain conditions. However, there are no overloaded impracticable points in the contract:

  1. Good creditworthiness of the borrower. Difficulty paying previous loans, outstanding loans, or late payments can be a reason for refusing to lend.
  2. Professional business plan. The obvious way to make money soon, though small but steady, will force financial experts to agree with the borrower and find the right solution.
  3. The existence of employment that creates additional income. Solid income enables the successful repayment of a small business development loan from scratch.
  4. The presence of personal property that can be pledged on credit. This is a serious guarantee of a mandatory refund.
  5. The presence of a reliable guarantor.
  6. The presence of initial financial capital, which is approximately 25% of the required amount.

There are other circumstances of getting a business loan from scratch. It is worth considering at least some of them.

Where do you get a small loan from scratch that the bank can contact?

Where do you get a small loan from scratch that the bank can contact?

It must be understood that, firstly, not all financial institutions grant such loans, and secondly, the requirements and offers of the bank are different and the businessman naturally wants to choose the most profitable option.

Russians who want to become self-employed can take support from a number of financial institutions. Which banks lend to businesses from scratch? A small business loan is available from scratch in several banks in the Russian Federation – more on this below.

Good Credit offers the cheapest rates for legal entities registered in Russia and has quite different terms, including corporate loans for entrepreneurs. The approaches to LLC and IP vary considerably. Real estate is often required as collateral to issue a loan. Specific examples:

  1. Express Micro. A loan of 30,000 to 600,000 dollars is granted for a period of 3 months to 3 years. Pledged personal property is not required.
  2. Small loan. Funds are spent on the security of personal movable or immovable property for a period of 3 months to 7 years. The loan amount, in this case, is in the range of 600,000 to 30,000,000 dollars.
  3. Under the contract. By issuing such a loan, the bank then has a legal right to claim amounts from the contract. The loan is granted for a period of 3 to 12 months. The volume of the loan in this case varies from 150,000 to 6,000,000 dollars.