Business development involves a constant infusion of funds. When it comes to an enterprise that has long and successfully operates in the market, there are no problems with financing as such, and banks are more willing to meet such customers. But for novice entrepreneurs and businessmen who open their business from scratch, sometimes not easy to get a loan. And the main requirements of most banks is the availability of collateral property, which novice businessmen cannot boast.
Of course, as an exit, an entrepreneur can issue an inappropriate consumer loan in the bank as a private person. But again, if it comes to a fairly large amount, then financial and credit organizations require the provision of collateral or attracting guarantors. However, this option is not suitable for a number of reasons. Many banks today offer a loan for business development, in addition, there are financial structures specializing in the financing of precisely small enterprises. Such organizations develop credit programs taking into account the needs of small businesses and the specifics of its activities. Indeed, in addition to saturated problems in the form of payment of services to suppliers, issuing wages, etc. D. The entrepreneur requires equipment, transport and non -residential premises for offices and warehouses. In this case, a businessman makes sense to use the services of a leasing company.
Today, leasing is the most affordable alternative to a small business to a loan. In this case, the borrower rents the necessary equipment or transport from the leasing company, while the property remains owned by the landlord until the full repayment of the loan debt. Payments on leasing are payments under the contract and tax deductions. The acquisition of the necessary property in leasing has a number of advantages over classic types of loans. In addition, leasing is required much less time.
If companies required money for current expenses from time to time, then it is worth issuing an overdraft at the bank. This is a kind of credit line with a limited limit, which opens to the existing settlement account of the company. This short-term type of loan makes it possible to pay in cases in cases where funds are delayed for some reason. Overdraft debt payment occurs at the time of transfer to personal funds. The term for this type of loan is usually small and limited to one month.
Of course, the company’s reputation is not the last place in making a bank’s decision, so it is very important to pay on debts on time.