It is difficult for a business, even a small one, to survive without attracting additional funds for current expenses. If an entrepreneur seeks to strengthen and expand his business, then he cannot do without contacting a bank for an investment loan or a leasing company to purchase equipment or real estate. How to choose a bank to apply for a loan, what documents to prepare, how to prove solvency? Or is it better to prefer leasing? How will the choice of one transaction or another affect tax payments? Such questions confront entrepreneurs every day. A businessman must delve into the intricacies of bank lending or leasing transactions in order to avoid pitfalls and successfully run and develop a business.
Features of individual entrepreneur lending
A Russian citizen, in order to become an entrepreneur, is required to register with the relevant government authorities. IP has twofold legal status, so he can get a loan:
- as an individual;
- as an individual entrepreneur.
Loan to an individual entrepreneur as an individual
Recently, banks have been willing to provide consumer loans to citizens of the country. More than 40 million Russians (according to the Central Bank of the Russian Federation) must return consumer loans to banks with interest, including mortgages. To obtain a loan, an individual needs to submit the following minimum documents to the bank:
- passport of a citizen of the Russian Federation;
- a copy of the work book;
- income certificate 2-NDFL.
Different banks add to this list the presentation of other documents indicating the client’s solvency. For example, certificates of ownership of a house or apartment, a car, a deposit agreement, and the like. The more evidence of the borrower’s solvency, the higher the loan amount and the lower the interest rate.
Everyone wants to hear: “You have been approved for a loan on terms favorable to you.”
Individual entrepreneurs apply for a consumer loan as citizens to start a business. Banks are more willing to lend money to individuals than to start-up businessmen. But the individual entrepreneur has nowhere to get a certificate in form 2-NDFL, because he works for himself and records in work book does not have. This means that you need to find guarantors and register movable or immovable property as collateral. Even if the bank does not refuse, a loan received by an individual will negatively affect the future entrepreneurial activity:
- a credit history is not formed, which would subsequently ensure the bank’s loyal attitude towards the individual entrepreneur, who repaid the loan on time and without delays;
- there is no opportunity to apply for financial assistance to federal or regional programs to support small businesses.
Loan to an individual entrepreneur as an entrepreneur
We must immediately admit that lending to individual entrepreneurs has its own additional risks for banks, especially small ones:
- Individual entrepreneurs can very quickly cease to exist if necessary, the law allows;
- It is very difficult for a bank to determine solvency, since most individual entrepreneurs are on a simplified taxation system.
According to RAEX (Expert RA - a rating agency), large banks from the top 30 by assets are beginning to increase their issuance volumes, while the rest are curtailing financing of small and medium-sized businesses. As a result, the total issues issued by large banks increased by 19% in 2016, while the volume of issues issued by small and medium-sized banks decreased by 22%.
But loans are necessary for a company at any stage: formation, current activities, development, reconstruction, etc., etc. You still have to go to the bank. For “hiking” to be successful, you need to build a good reputation, which includes:
- period of real activity (not just registration) of individual entrepreneur more than a year;
- availability of property that can be pledged - equipment, transport or goods;
- good credit history: no delays, fines, penalties and other complications;
- transparent reporting, preferably on the taxation system, where profit is determined.
The conditions are not easy for individual entrepreneurs, who for the most part rely on the simplified taxation system (STS). I worked for 20 years. accountant at a small enterprise and I know firsthand how difficult it is to keep records common system taxation (OSNO). An accounting staff is required, at least 2-3 people. Another option is to contact a company that will maintain accounting and tax records on a paid basis. Both are often beyond the means of an individual entrepreneur. But the main thing is that at OSNO the tax burden on the company is much heavier: it is necessary to maintain tax records to calculate and pay VAT, income and property taxes. Building a good credit history is also not an easy task. But the difficulties are surmountable and depend on the goals and objectives that an individual entrepreneur sets for himself. It is important to open a current account where they offer favorable loans. The bank, knowing the client’s cash flow and payment discipline, takes less risk, which means it will issue a loan on favorable terms.
Video: is it worth taking out a business loan?
Types of loans for individual entrepreneurs
Not a single business can do without financial injections: the deadlines for receiving money for goods and services do not coincide with the dates for issuing salaries and transferring mandatory payments. Periodically, costs arise for the purchase or replacement of equipment, transport, and the introduction of new technologies. The difficulty in obtaining a loan lies in selecting a suitable loan product and proving solvency to the bank.
Banks offer the following types of loans for medium and small businesses:
- starting a business from scratch;
- loans for any purpose;
- to replenish working capital;
- for the purchase of equipment and vehicles.
Let's consider the possibility of obtaining a loan by type, the pros and cons of each of them.
It is almost impossible to get a loan to start a business from scratch as an individual entrepreneur. In the Federal Tax Service report on Form 1-IP, the number of individual entrepreneurs registered in the country as of 01/01/2018 is 3,696,127, and ceased to exist according to at will on the same date 6988921 IP. These are the statistics. It is understandable that banks are reluctant to issue funds with a high risk of non-repayment. Of the top banks, only Sberbank and Alfa Bank offer this kind of loans. If you have developed a business plan in detail, you have a clean credit history and you have offered liquid property as collateral, you can safely go to the bank. Sberbank issues such a loan with the additional condition that the borrower enter into a franchise agreement with its partners.
Loans for any purpose are also issued by banks on basically the same conditions - a business plan, assurance of repayment and a good CI (credit history). An option without collateral is possible, but the amount will be small, a few hundred thousand rubles - it may not be enough. The lender is not interested in what you spend the money on.
Loans to replenish working capital help to quickly resolve financial difficulties. You can choose the option with the lowest costs.
An effective impetus for the development of a company is provided by a loan for the purchase of equipment and transport. Many banks have developed programs to help businessmen purchase new or replace outdated equipment and vehicles.
Sberbank is one of the few who are ready to lend to start-up entrepreneurs
Individual entrepreneur needs a loan - where to go, where to apply
Requirements for borrowers and lending conditions from banks are universal with minor differences. The terms of the contract directly depend on the documents submitted by the applicant to confirm his creditworthiness and solvency.
All banks, without exception, require that the borrower be a citizen of the Russian Federation and have permanent or temporary registration in the locality where the bank branch is located.
It is clear from the table that there are no bad banks, just as there are no good banks. Loan conditions are also average. For example, Alfa Bank issues from 3.5 million rubles under the Partner program. up to 6 million at a rate of 15%. This is one of the minimum rates compared to other banks, but it can be higher, and it makes it mandatory to involve a spouse as a co-borrower.
Table: loans from top banks for medium and small businesses
| Offers and conditions of banks | Sberbank | Alfa Bank | VTB 24 | Bank of Moscow |
| Loan name | "Confidence" | "Partner" | "Kommersant" | "My business" |
| Loan amount, rub. | 800000–3000000 | 3500000–6000000 | 1000000–3000000 | 1000000–2000000 |
| Payment term, months | 6–36 | 36 | up to 60 | up to 60 |
| Bid, % | 19–19,5 | from 15 | from 21 | from 26 |
| Prerequisites | guarantors | mandatory involvement spouse as a co-borrower | guarantee is not required | guarantee is not required |
| Requirements for the borrower: age, years | 25–60 | 22–60 | 21–65 | 21–65 |
| Duration of doing business, months. | 6 | no requirements | no requirements | from 6 |
Preparation of a package of documents for an individual entrepreneur for a loan application
The list of documents that the applicant (in our case, individual entrepreneur) must submit is the same for all banks and is regulated by the instructions of the Central Bank of the Russian Federation. You will need legal documents, usually copies of:
- individual entrepreneur registration certificates;
- tax registration certificates;
- passports;
- SNILS;
- Borrower's TIN;
- income certificates in form 2-NDFL or in bank form;
- the same documents for co-borrowers or guarantors, if required by the bank providing the loan.
The package that determines whether the bank will consider a loan application is documents that prove your solvency. If an individual entrepreneur uses a simplified system and the object of taxation is income, then in fact no accounting is kept and it is difficult to prove financial solvency. In this case, prepare contracts for the shipment of manufactured products or services provided and a register of funds received as payment. Provide a list of debtors and creditors, take a tax certificate about the status of settlements with the budget, etc. If you are planning to take a loan from the bank where the current account is opened, then it is easier, since the bank knows the cash turnover and the status of your settlements.
Be prepared that the bank will require collateral, because without it a large loan will not be issued. Liquid objects are taken as collateral: real estate, expensive cars. The bank will not take your equipment from Soviet times. Who will buy it if, God forbid, you do not repay the loan and the bank has to sell the pledged equipment? The main thing is to remember that an individual entrepreneur is responsible for his obligations, including under the loan agreement, with all his property.
Video: how to get a loan for a small business
Loan terms for individual entrepreneurs
When lending to small businesses, banks strive to minimize the risk of non-repayment of issued loans. For example, Sberbank provides a loan to individual entrepreneurs under the Business Start program on the following conditions:
- starting capital is provided in the amount of 80% of the required amount;
- the maximum possible loan amount is 7 million rubles;
- duration - no more than 5 years;
- no additional collateral required;
- The loan is given only for opening a business under famous brand(franchise) or according to a standard project (developed by a bank partner).
The key condition is the franchise. Opening a business under the brand name of a well-known company promises almost 100% success. After all, the franchise agreement takes into account the little things and nuances, and the payback is calculated based on the experience of companies that have been operating under this brand for a long time. You won’t have to promote your own name - it will take a long time, it will be expensive and no one will give you money. Buyers will immediately come to a familiar brand.
Banks have the same age-based lending conditions: no younger than 21 years old (the borrower will not go into the army), and no older than 65 years old. Keep in mind that the upper age limit indicates the year the loan term ends, not the beginning. When considering a loan application, much attention is paid to the period of actual functioning of the company - at least 6 months, and preferably a year (see table). But Sberbank, when applying for a Business Start loan with the purchase of a franchise from a partner, does not set conditions on the validity period of the business.
Benefits for lending for individual entrepreneurs
Valid in the Russian Federation Government program assistance to small and medium-sized businesses at the federal and regional levels. The state strives to ensure that the contribution of small and medium-sized businesses to the development of the economy constantly increases and ensures an increase in the well-being and social peace of the population.
State assistance measures for small businesses include:
- interest-free lending;
- leasing;
- state compensation system payments and assistance for fulfilled loan obligations;
- compensation for the amount spent on the purchase industrial equipment and other means of production.
Receive government assistance by opening a business in the field of education, healthcare and other socially significant services. You can find out how to get such business assistance by contacting the local small business assistance fund, which operates in the regions of Russia. State assistance is provided to business structures that have been operating for more than a year and have no debt on mandatory payments.
Video: how to get money from the state for individual entrepreneurs
Terms for consideration of loan applications
On average, it takes banks 10–14 days to review your application, that is, check your solvency. After registering a loan application:
- Request a credit history from the Credit Bureau to find out your past relationships with banks.
- The credit and legal departments examine the submitted documents and assess financial solvency and creditworthiness.
- The security service checks the authenticity of the submitted legal documents.
- When pledging, an appraiser is involved.
After verification by the bank services, the application is discussed in the credit committee and a decision is made. Sometimes the review is delayed, which does not always indicate an unfavorable response. This can also happen for technical reasons.
We encountered Sberbank for the first time. Despite not too much positive reviews, we still decided to use the services and apply for a consumer loan. The mistake was fatal... When filling out the application, the consultant told us that the processing time for the loan application was 1-2 business days. The same deadlines are posted on the bank’s official website. Now. Wait, wait! Neither two nor three days later, as expected, the application was considered. They asked to provide a copy of the passport again, since the one provided the first time was unreadable. A couple of days later, they called from the Sberbank contact center in order to clarify what clothes the potential borrower was photographed in. Very interesting... After voicing the “piquant details”, the employees did not contact us for several more days. Having called the specialists of the Sberbank contact center in order to clarify the regulated deadlines for reviewing an application for a consumer loan, we received an answer that the review period is up to 2 business days, but the bank has the right to set its own additional review period if necessary. When asked what the maximum regulated period for consideration of an application is set by the bank, the contact center employee replied that they did not have this information... It was the 6th (working) day. There was no response to the application... The situation is extremely unpleasant...
sergey.orekhov
banki.ru
Reasons for refusal to issue an individual entrepreneur loan
Banks refuse to issue a loan to individual entrepreneurs if:
- the applicant’s solvency does not comply with the restrictions adopted by the bank;
- the applicant’s age and period of work as an entrepreneur do not comply with the bank’s conditions;
- the bank is not confident in repaying the loan (this is the main reason).
The bank will not want to issue a loan to a former defaulter
Pros and cons of individual entrepreneur lending
Entrepreneurs have to constantly borrow. But bank lending to business activities has its disadvantages. If you go for a loan, then be prepared to face the fact that banks, in order to justify the risk of non-repayment of borrowed funds:
- issue loans for small businesses at high interest rates of 15 or more. The larger the amount, the higher the percentage;
- require property as collateral whose value is up to 50% higher than the amount of the applied for loan;
- an appraiser and a notary are involved in registering a pledge and surety, which increases the cost of the service;
- They consider the application for a long time - often up to a month.
If the individual entrepreneur cannot repay the loan, he will be liable not only for the property involved in the business, but also for his personal property. The law will be on the side of the bank. The unlucky borrower will be charged the loan amount and late fees in judicial procedure. If the court decision is not followed, the property may be forcibly confiscated.
The benefits of bank loans for small businesses are also obvious:
- there is an opportunity to solve the problem of shortage of working capital;
- At the expense of the borrowed funds, the individual entrepreneur will modernize and expand the business;
- For small businesses, banks provide flexible debt repayment schedules;
- some banks issue express loans 2-3 days after submitting documents. If you submitted an application to the bank where you opened your current account, the processing time will be reduced.
Refinancing an individual entrepreneur's loan
Banks provide loan refinancing services to individuals and legal entities, including individual entrepreneurs. Refinancing (or refinancing) means obtaining a targeted loan from a new bank to repay one or more loans previously taken from other banks. At the same time, they reduce interest rates, which are directly related to the reduction in the key rate of the Central Bank of the Russian Federation.
The individual entrepreneur took out a loan in February 2015 at 19.06% (the weighted average interest rate at that time for medium and small businesses) for 5 years. The Central Bank of the Russian Federation issued loans to commercial banks in February 2015 at 15%. Since February 12 of this year, the Central Bank of Russia has reduced the key rate to 7.5%.
If you have problems with credit, join the refinancing program
An entrepreneur can find a bank that will provide funds for early repayment old loan. Some banks provide deferment in repayment of principal debt.
But before starting the refinancing procedure, find out:
- is there a prohibition in the loan agreement on early repayment;
- Is there a fine or commission for this?
- whether there was a delay in repaying the previous loan.
Conditions for refinancing
When choosing refinancing terms, review the requirements of the new lender. Usually they are of the same type:
- the business has been operating for more than 6 months, some banks indicate 12 months;
- the entrepreneur is a citizen of the Russian Federation, and the company is a resident of the Russian Federation;
- there is a current account opened in the bank where you are applying (not all banks require);
- good credit history;
- the business makes a profit.
Documents required for refinancing
The requirements of banks are basically the same:
- application for refinancing;
- list of persons authorized to sign financial documents;
- your profile;
- guarantor questionnaire(s);
- passport;
- extract from the Unified State Register of Individual Entrepreneurs;
- declaration of taxes paid;
- household documents company activities;
- information on the movement of funds across accounts;
- documents on ownership of the collateral property.
But banks may request additional documents. Sberbank, as part of the Business Turnover loan, with which you can close previously taken out loans, requires the constituent and registration documents of an individual entrepreneur.
Video: how to refinance a loan
How to refinance
To refinance your loan, you should:
- Find out if the loan agreement contains a moratorium on early repayment.
- Find a bank that will agree to refinance your debt.
- Obtain a certificate from the lender about the outstanding balance on the loan.
- Submit the prepared package of documents and wait for the bank’s decision.
If you have a secured loan, then you need to quickly re-register it for new bank. While you are re-registering the pledge, you will have to pay increased interest. A borrower with a bad credit history will be denied refinancing.
What to choose as an individual entrepreneur: loan or leasing
Leasing is a long-term financial lease with the right of subsequent purchase. With the help of leasing, entrepreneurs acquire fixed assets, often vehicles.
Therefore, if an individual entrepreneur plans to purchase warehouse space or a car, then you should study what is more profitable: obtaining a targeted loan from a bank for business expansion or concluding a financial lease agreement with the leasing company. The main difference between leasing and a loan is that ownership of equipment or vehicles belongs to the lessor, and the lessee, after the end of the lease period, has the right to buy the objects at their residual value. Leasing is carried out by commercial banks and specialized leasing companies.
Advantages of leasing for individual entrepreneurs
Compared to the complex, not always successful procedure of obtaining a loan from a bank, it is easier for an individual entrepreneur to update machines or purchase vehicles under a leasing agreement, because leasing companies:
- do not pay strict attention to the lifespan of the individual entrepreneur;
- do not require documentary evidence of the profitability of the household. activities and present a business plan;
- quickly, sometimes within one working day, they make a decision on concluding an agreement with an individual entrepreneur;
- do not require collateral or guarantors;
- conclude agreements without explicit and hidden fees inherent in bank loan agreements.
After concluding a leasing transaction, individual entrepreneurs can:
- immediately use the leased property in business activities;
- pay the cost of equipment not immediately, but monthly or quarterly, according to the leasing agreement.
Leasing is an alternative to credit when purchasing equipment
Disadvantages of leasing for individual entrepreneurs
Despite the advantages compared to bank loans, leasing is in little demand among small businesses. Perhaps this is influenced the following disadvantages acquisition of assets under leasing agreements:
- the need to make an advance payment (minimum 10% of the purchase price);
- mandatory insurance of the leased object (the lessee insures it at his own expense);
- lack of ownership of the leased item until full repayment of its value under the contract;
- the possibility of unilateral termination of the contract with the individual entrepreneur by the lessor. True, this is only possible if the individual entrepreneur does not comply with the leasing conditions, for example, the purchased car repeatedly gets into accidents, does not pass technical inspections, etc.
Leasing and taxation of individual entrepreneurs
Under different taxation regimes applied by individual entrepreneurs, leasing transactions have different effects on the amount of payments:
- For individual entrepreneurs who use the simplified taxation system (STS) “income minus expenses 15%,” leasing payments will reduce the tax burden, since they are included in expenses.
- Under the simplified tax system “6% income,” leasing does not affect the amount of tax in any way, since the tax base is revenue.
- The cost of property increases by 18% VAT, regardless of how the individual entrepreneur acquires the fixed asset: through leasing or independently. He has no right to reimburse the amount of tax from the budget, since he is not a VAT payer. Ideal option there would be a coincidence of the taxation regimes of the simplified tax system for the leasing company and for the individual entrepreneur - when both parties to the lease do not pay VAT.
- If an individual entrepreneur operates under the general taxation regime (OSNO), the acquisition of fixed assets on lease optimizes payments.
Before concluding a leasing agreement, an entrepreneur needs to understand the peculiarities of taxation of leasing operations, taking into account his tax system, in order to optimize payments.
Bankruptcy of individual entrepreneurs with loans
The difficult economic situation in the country, the decline in consumer demand, the increased requirements of banks for lending and other factors are especially hard for small businesses. During entrepreneurial activity, individual entrepreneurs accumulate debts on wages, obligatory payments to the budget and payments to the bank for loans, raw materials, energy, etc. Many cannot stand it and close their enterprises. But closing a business is not so easy, especially with debts. One way out is bankruptcy. It is initiated:
- the entrepreneur himself;
- creditors, including the bank, to which the merchant is unable to repay the loan with interest.
Bankruptcy is an option for those who cannot pay their debts
On October 1, 2015, after amendments to Federal Law 127-FZ “On Insolvency (Bankruptcy)” came into force, entrepreneurs began to go bankrupt according to new rules, like individuals. This significantly reduced the cost of the procedure.
An individual entrepreneur must notify of his intention to apply for bankruptcy by including a notice in the Unified Federal Register of Information on Activity Facts legal entities. Bankruptcy is a long, multi-stage process that lasts at least six months to a year.
Consequences of bankruptcy for an entrepreneur
Only an arbitration court declares a citizen or legal entity bankrupt. After this, the following consequences occur for an individual entrepreneur:
- from the moment he is declared bankrupt, he loses his status as an individual entrepreneur;
- within 5 years after completion of the bankruptcy procedure, an individual entrepreneur cannot re-register as an individual entrepreneur.
How can a bank repay a loan in case of bankruptcy of an individual entrepreneur?
When an entrepreneur with a loan goes bankrupt, the bank “suffers” because it cannot return the loan issued to the insolvent debtor. When issuing loans, banks use standard methods to ensure their repayment: collateral and surety. Banks require liquid property as collateral; spouses act as guarantors for individual entrepreneurs. Such measures only partially guarantee the return of issued funds.
In practice, the pledged property is sold before the bankruptcy procedure begins, and the bank is forced to file claims in the register of creditors of the debtor. This means that the bank has no advantages over other creditors of the bankrupt. Thus, the bank suffers losses and is forced to participate in the bankruptcy process of the debtor.
Someone said that loans are the lifeblood of the economy. But if you decide to take out a loan for a business, instead of the expected breakthrough and further development, you will not receive an unsustainable debt, unfulfilled obligations to counterparties, and, as a result, bankruptcy. Look at the banks' offers: from 15 to 26 percent, but this is only a promotional price. Hidden fees, mandatory credit insurance, collateral and guarantee, and a list of proof of creditworthiness make the cost exorbitant or exorbitant. At the same time, loans are really needed. Weigh the pros and cons and choose the right conditions.
Hello, dear readers of the business magazine “site”! In this article we will tell you how to get a loan for an individual entrepreneur to open and develop a business, including without collateral and guarantors in cash/non-cash.
After reading this publication from beginning to end, you will learn:
- What types of loans are there for individual entrepreneurs offered by banks;
- What stages will have to be overcome to take out an individual entrepreneur loan;
- Where can you get a loan for entrepreneurs without collateral or a guarantor?
At the end of the article, we traditionally provide answers to frequently asked questions.
The article will be useful not only to entrepreneurs themselves, but also to those who are planning to become one. It is not necessary to already have plans for applying for a loan, but it will be useful to study the publication and be prepared in this matter. So start reading now - will definitely come in handy in the future!
Read about how to get a loan for individual entrepreneurs and where you can get a loan for an individual entrepreneur without collateral and a guarantor in cash.
Individual entrepreneurs (IP) in Russia have a special status:
- Firstly, they are ordinary individuals, therefore they have their rights and obligations;
- Secondly, Individual entrepreneurs act as business owners and conduct entrepreneurial activities to generate income.
IN different situations This dual status can either benefit or create difficulties for the entrepreneur.
On the one side , when applying for a loan, individual entrepreneurs, as individuals, can count on the appropriate programs. However , checking the solvency of entrepreneurs is carried out more strictly. Banks often refuse to apply to individual entrepreneurs who have failed to prove that their business is reliable.
It turns out that issuing loans to individual entrepreneurs is a difficult and unpredictable lending area. It is difficult to figure out why creditors immediately refuse some entrepreneurs, and others without their application. special labor issue loans for a large sum.
Not everyone understands what banks’ decisions on loan applications submitted by individual entrepreneurs are based on. This is why it is important to explore what ways there are to increase the likelihood positive solutions .
One of the main requirements of banks for individual entrepreneurs in the process of considering an application is duration of activity . Some lenders require that the length of service be at least a year, others have enough and several months. One requirement remains unchanged - the business must generate stable profits.
If a citizen has recently been employed or was listed as unemployed, he will almost certainly be denied a loan for business purposes. In such situations it is much easier to obtain non-targeted loan for individuals.
However, it is worth considering, that the size of the non-targeted loan and the period for which it is issued will be minimal. Moreover, in this case, the entrepreneur is deprived of the opportunity to start a positive lending history as an individual entrepreneur. Thus, access to targeted lending for small businesses will be closed.
An individual entrepreneur must keep in mind that in order to obtain a loan for a large amount, he will have to provide security . It will become a confirmation of solvency for the bank.
Lenders accept the following property as collateral:
- vehicles;
- real estate;
- land;
- equipment;
- specialized equipment;
- inventories;
- securities.
After an entrepreneur submits an application for a loan, the bank conducts full analysis financial and economic activities related to his business. If it is found to be profitable and successful, the likelihood of the application being approved will increase.
Difficulties with obtaining a loan arise if the entrepreneur is new to business. In this case, income will not be shown. It is much better if the entrepreneur is able to document the fact of investing in the business, as well as provide a well-written business plan.
The bank may require a beginning entrepreneur to provide:
- various payment documents (receipts, checks), confirming the acquisition of fixed and working capital - materials, equipment and others;
- certificate of ownership or real estate lease agreement, necessary for conducting business activities;
- bank statements, confirming money transfers aimed at business development;
- guarantors with a stable income , who can be both employees of companies and successful individual entrepreneurs.
For business lending, including individual entrepreneurs, The most commonly used types of loans are::
- factoring;
- investment loan;
- letter of credit;
It is important to choose the lending method wisely. If you do not have sufficient financial knowledge, you can turn to professional credit brokers.
It is important to note, that individual entrepreneurs unlike ordinary individuals, are not very attractive to banks as clients. This is due to the high risk it takes financial institution when issuing a loan.
On the one side, banks usually do not question the purpose of an individual receiving a loan. As a rule, this is a major purchase, home renovation, travel and others. Moreover, hired workers have a guaranteed income in the form of wages.
In the same time, the purposes of lending to individual entrepreneurs are not so obvious. Their profit is not secured by anything and there are no guarantees of its permanence.
Running your own business always involves risk. Many entrepreneurs face failure BEFORE payback moment. That is why banks require the provision of property as collateral or confirmation of the success of the business.
Large lenders often offer entrepreneurs specialized loan programs . The fact is that such services are an important line in the revenue side of the budget of credit institutions.
However, it is worth considering that priority in approving loan applications is given to entrepreneurs who have been successfully working in their field for several years.
For beginning entrepreneurs who want to get a loan, there are 2 options:
- obtain a consumer loan or credit card as an individual;
- do not despair and continue to look for a program for individual entrepreneurs.
It turns out that it can be difficult for an individual entrepreneur to get a loan. Therefore, experts recommend carefully studying all the nuances of such loans in advance.
Types of bank loans for individual entrepreneurs
2. What loans do banks offer for individual entrepreneurs - 4 main types 📋
Banks lend to individual entrepreneurs in several ways. Below are described 4 most popular types of loans for individual entrepreneurs .
Type 1. Loan to replenish working capital
Such loans are used to replenish working capital in the production process.
The reasons for taking out such a loan are usually:
- intensive growth of production, For example in season;
- the desire to buy a significant batch of raw materials, materials or goods at a favorable price, but lack of funds for this.
Traditionally, the repayment period for loans of this type does not exceed 2 years . To obtain it, the entrepreneur will have to confirm his solvency. For this purpose, banks are usually asked to provide activity report.
After signing the loan agreement, the entrepreneur is given repayment schedule. It is important to follow it exactly, make payments on time and in in full.
At the same time, entrepreneurs are often provided installment plan on 3 month (especially for seasonal business). During this time, funds usually begin to flow into the individual entrepreneur’s current account.
Type 2. Overdraft
You can apply for this loan 1 time per year . After this, the funds can be used at any convenient time.
In most cases, overdraft is offered by banks that maintain the entrepreneur's current account. If the turnover is high enough, collateral will not be required to obtain such a loan.
You should carefully study the loan agreement. One of the most important parameters overdraft is debt repayment period. It can be one or several months.
When the debt is fully repaid, the money can be borrowed again. This principle is used throughout the year.
Type 3. Consumer loan for individual entrepreneurs
A special feature of this type of loans is their non-targeted nature. It turns out that the bank does not check the direction in which the funds are used. This approach significantly simplifies the application process and increases the likelihood of loan approval.
It should be kept in mind that a consumer loan is issued only to individuals. However, due to the special status of individual entrepreneurs, some banks may refuse to issue them such a loan.
In most cases, the amount of the consumer loan does not exceed 100 000 rubles. To increase the loan, you will need to attract a guarantor or co-borrower. This will allow you to get before 500 000 ruble y. If an even larger amount is required, you will have to provide high-quality collateral.
Type 4. Targeted loan
This type of loan is issued for specific purposes - expansion of trade and production, purchase of a vehicle.
The bank will require confirmation of the direction of spending the funds. To do this, you can provide checks, payment orders, PTS and other documents.
Typically the loan amount is approx. 1 million rubles , and the repayment period is about 5 years.
We told O 4 - main types of loans for individual entrepreneurs. Do not forget that each bank offers its own conditions.
Therefore, you should study the maximum offers on the market and compare them. Only in this case will it be possible to choose the most the best option.
What factors influence loan approval for individual entrepreneurs?
3. What parameters do banks pay attention to when issuing loans to individual entrepreneurs 💎
Each bank independently develops the requirements it sets for potential borrowers. However, there are a number of parameters that each financial institution takes into account when applying for a loan for individual entrepreneurs.
Parameter 1. Credit history
During the consideration of an application for a loan from individual entrepreneurs, the bank examines. This is explained by the fact that the individual entrepreneur is an individual.
There will be no problems with obtaining a loan if the following conditions are met:
- there are no overdue loans;
- The individual entrepreneur did not declare himself bankrupt;
- previously received loans are closed in a timely manner;
- there are no existing loans or they are small;
- There are no complaints from the tax office.
Should be considered, that a complete lack of credit history (when loans have not been issued previously) does not guarantee approval.
To create a positive reputation, you can register quick loan through microfinance organizations and close it on time. It is important that the company used for lending transmits information to the BKI ( credit bureau).
Parameter 2. Compliance with laws
When considering applications, the bank always studies legal status of entrepreneur. To do this, they will definitely check the presence of debts to the budget for the transfer of taxes, as well as debts to counterparties.
In addition, the bank takes into account the following points:
- timely payment of wages to the entrepreneur’s employees;
- absence of administrative and criminal offenses;
- property belonging to the entrepreneur should not be seized.
Parameter 3. Amount of income
One of the main signs of solvency is traditionally considered income level. It is not difficult for citizens who work for hire to confirm it - just ask the employer’s accounting department for a corresponding certificate.
However, the entrepreneur cannot provide such a document, so he will have to familiarize the bank with accounting reports about your activities for at least 6 months.
Important! The level of solvency of potential borrowers is the most important requirement of credit institutions. Therefore, the entrepreneur will have to convince the bank that he is able to receive regular stable profit.
However, high income today is not a guarantee that a business will remain successful. Therefore, some banks consider financial statements to be an insufficient basis for approving a loan.
Additionally, the following proof of solvency may be required:
- primary documents;
- auditors' reports;
- indirect confirmation of the level of solvency ( For example documents for expensive liquid property - vehicles, real estate).
Parameter 4. Duration of activity
If state registration individual entrepreneur was carried out shortly before submitting an application for a loan, you should not wait for approval. The only chance to become a borrower in this case is– attract guarantor or provide liquid pledge.
Banks have never been charitable organizations. It is important for them to return the borrowed funds with interest without any problems.
Meanwhile, it is impossible to assess the probability of repayment of a loan issued to an entrepreneur who has recently been working. That is why business experience in most cases should be at least 6 months .
Banks are required to provide repayment guarantees from potential borrowers. To receive a loan, entrepreneurs must confirm their level of solvency. The circumstances described above are necessary precisely for this.
How to get an individual entrepreneur loan - a guide for a new entrepreneur
4. How to get a loan for an individual entrepreneur from scratch - 5 main stages of obtaining a loan for a beginning entrepreneur 📝
One of the conditions for obtaining loans by individual entrepreneurs is availability of a current account. Without it, it is difficult to track the receipt of funds.
However, concluding an agreement on an account is not enough. To get a loan, you will have to complete a number of actions. Below is instructions , developed by specialists.
Stage 1. Business registration
Any Russian citizen who has reached the age of majority has the right to register as an individual entrepreneur.
Also important conditions is that the future entrepreneur should not:
- be in the civil service;
- be declared bankrupt less 12 months ago.
To register a business you must pay state fee, the size of which is 800 rubles .
If a citizen for some reason does not want to register a business on his own, he can contact a specialized company. Naturally, in this case, costs will increase.
One of the documents required for registration is statement . Its form is established by law. It is important to fill out the application as carefully as possible - Errors and typos are not allowed. It is important to study it in advance so that you know what data you will have to provide.
An entrepreneur must understand that the application includes the so-called activity codes.
Costs early decide what the entrepreneur will do. After this, it is important to study the legislation and select the appropriate codes.
Another important registration step is choice of taxation system . If the entrepreneur does not have sufficient knowledge regarding accounting, experts recommend him to consider the use case simplified taxation system.
An individual entrepreneur does not have to use a seal in his activities. However, you can order it if you wish. The cost varies depending on the region, manufacturer and complexity of the design.
Stage 3. Selecting a credit institution and submitting an application
Many people call the most important step in applying for a loan bank selection . Today, a huge number of lenders offer programs aimed at small businesses. The entrepreneur’s task at this stage is to choose the optimal option.
Ideally, preference should be given to large reliable banks with an impeccable reputation. It is also important that the location of the offices is as convenient as possible.
There are others important criteria choosing the best bank:
- period of activity in the Russian financial market;
- conditions of lending programs for individual entrepreneurs;
- proposed rates;
- reviews from entrepreneurs who have already taken out a loan from a specific bank.
Today, you don’t have to visit a bank office to submit an application. Most major credit institutions offer to do this on their website. in online mode . This option allows doubtful entrepreneurs to send an application to several banks at once.
The information provided is verified by employees Security Services. After this, the bank makes a final verdict on the application. If approval is received, the entrepreneur must apply with the necessary documents to the nearest bank branch.
Stage 4. Preparation of a package of documents for obtaining an individual entrepreneur loan
A simple rule to remember- how more number of documents, topics higher chances for positive solution .
Most often, banks require from individual entrepreneurs:
- passport;
- tax registration certificate (in simple terms, TIN);
- the extract from the Unified State Register of Individual Entrepreneurs must be fairly recent, usually received no more 1 months ago;
- an extract from the current account confirming all movements on it;
- tax return for the previous reporting period;
- Primary documentation may also be required.
When checking the information provided, the bank often requests additional documents.
Worth considering! Get a loan without proof of incomealmost impossible for an entrepreneur.
Even if such a loan is issued, the interest rate on it will be minimal 5% higher than traditional.
Stage 5. Receiving borrowed money
An individual entrepreneur is unlikely to be able to get a cash loan. The money under the loan agreement will be transferred to checking account.
If the loan is targeted, funds will be immediately transferred as payment for purchased vehicles, real estate, equipment or raw materials.
If you strictly follow the instructions developed by professional financiers, you will be able to obtain a loan much faster.
5. Where to get a loan for individual entrepreneurs to open and develop a business - TOP 3 best banks 🏦
When choosing a credit institution, an individual entrepreneur should not forget that he can take advantage of programs not only for individual entrepreneurs, but also for individuals.
With a huge number of offers, it is not easy to choose the best option. Can help review of the best offers from banks , compiled by experts.
1) Sberbank
Sberbank traditionally enjoys the greatest popularity among Russians. It provides lending to both individuals and legal entities, as well as individual entrepreneurs.
You cannot ignore the program, which is called « Confidence" . It is intended for lending to small businesses and individual entrepreneurs.
The loan amount under the program in question can be from 30,000 to 3 million rubles . The maximum debt repayment period is 36 months. You are not required to provide collateral to obtain a loan. The rate is from 16 % per annum.
Among the main requirements for the borrower are the following:
- age no less 23 and no more 60 years;
- minimum period of activity as an individual entrepreneur – six months.
2) VTB Bank of Moscow
For those who are just planning to organize own business, it is best to arrange consumer loan. VTB Bank of Moscow offers many programs that differ in conditions and requirements. The funds received from such loans can be spent on any needs.
In addition, several programs have been developed here for lending to individual entrepreneurs.
The most popular are - “Turnover”, “Business Prospect”, “Overdraft”. The bet on them begins from 14 % per annum.
3) Alfa-Bank
Those entrepreneurs who require funds to as soon as possible, experts recommend emphasize on credit cards this bank.
They have a fairly long grace period. This means that if the debt is repaid within 100 days you won't have to pay interest. At the same time, the grace period also applies in case of withdrawal from the card cash .
An interesting offer is the card "Twins" . It combines a debit and credit card. The maximum credit limit is 500 000 rubles .
Alfa-Bank also offers specialized programs designed for lending to individual entrepreneurs. For a more loyal attitude and maximum profitable terms can count regular customers jar.
For a more comfortable comparison of the presented banks, the main lending conditions are summarized in a table.
Table of banks with their terms of lending to individual entrepreneurs:
6. What are the conditions for obtaining a cash loan for individual entrepreneurs?
When submitting an application, individual entrepreneurs, like any other borrowers, are subject to a number of requirements.
Despite the fact that each bank has the right to develop them independently, general mandatory conditions can also be named.
The main requirements for the borrower are:
- age from 21 year to 60 years;
- absence of debts on various contributions to the state, including taxes;
- registration as an individual entrepreneur not less 12 months;
- business experience more than six months.
For a bank, issuing loans to individual entrepreneurs involves a high degree of risk. This is why loan terms become more stringent. Yes, the rate will be at least 17% per annum .
The size of the loan is influenced by the presence of collateral:
- in its absence in most cases maximum size loan will be not more 1 million rubles.
- When secured in the form of liquid property, the loan amount will depend on its value.
The average period during which the debt will need to be repaid is 3 -5 years . The maximum it can reach 10 years.
In general, it should be kept in mind that the conditions for providing funds are most often set individually. It all depends on the characteristics of the borrower, as well as the availability of collateral, including collateral and guarantors.
Ways to obtain a loan for individual entrepreneurs without collateral or a guarantor
7. Where and how to get a loan for an individual entrepreneur without collateral or guarantors for a long period - review of the TOP 10 options 🗒
Not all entrepreneurs are able to get money from the bank. This process is lengthy and does not guarantee success. Meanwhile, there are other ways to get money on credit . All are summarized below possible options.
Option 1. Contact the servicing bank
Contacting the bank that conducts checking account IP or in which it is open deposit, significantly increases the probability positive decision .
These credit institutions have information that can be used as confirmation of solvency.
Option 2. Applying for a consumer loan as an individual
Many banks offer consumer loans with a simplified application procedure. Such loans allow you to use the funds received at your discretion.
However, it is worth considering that such programs allow you to get a small loan amount.
Option 3. Secured loan
One of the most realistic ways to get a loan for an individual entrepreneur is loan secured by property . Real estate, vehicles, securities and other property can be used as collateral.
Important, so that the property belongs to the borrower by right of ownership and is highly liquid.
Option 4. Leasing
Leasing is also called financial lease. It allows you to obtain equipment and vehicles for rent with subsequent purchase.
The chance of getting a lease from an individual entrepreneur is quite high, because until the debt is paid off, the property remains the property of the lessor.
Read more about this for individuals and legal entities in the special issue.
Option 5. Investment funds
Quite rare, but still found specialized funds who direct their funds to the development of small businesses.
However in most cases they invest in unique and high-tech activities.
Option 6. Help from credit brokers
Brokers are intermediaries between the lender and the borrower. With their help, you can choose the best option, as well as prepare an application for a loan.
Naturally, brokers charge for their work commission. It is important not to enter it until you get the result., otherwise you may lose money and not receive a loan.
Option 7. Loan from loved ones
When looking for funds, it is important to explore all possible options. Don’t be shy about trying to borrow money from friends, family and acquaintances.
In this case, you will not have to prove your solvency, prepare documents, or wait for review. However, today not everyone will agree to lend money without interest.
Option 8. Private investors
Today there are many people who agree to give their money to business development. You can find them at special Internet forums.
But keep in mind that this option is too different high rates.
Option 9. Overdraft
An individual entrepreneur can apply for an overdraft in 2 options:
- to a current account;
- to a debit card opened for an individual.
The convenience of an overdraft lies in its renewability. It is enough to conclude an agreement once and then return and borrow money again.
In other words, the bank allows the entrepreneur to spend money in excess of the balance available on the account or card within the established limit, which depends on money turnover over the past six months.
Option 10. Receiving subsidies from the state
The subsidy is targeted government assistance to small businesses and individual entrepreneurs. Most often they are represented by municipal and federal programs, as well as business incubators.
Do not forget that soon after receiving the subsidy you will have to submit documentary evidence of the intended use of funds .
If the amount is not spent in full, you will have to return the rest to the state. For inappropriate waste, the entrepreneur faces criminal liability.
An individual entrepreneur should consider all possible options for borrowing funds. This allows you to significantly increase the chance of a positive decision.
Useful tips on how to reduce the loan rate for a starting individual entrepreneur
8. How to reduce the interest on a loan for an individual entrepreneur - TOP-3 tips for beginning individual entrepreneurs 💡
When applying for a loan, it is important to use all available methods to reduce the rate. This is especially true for large loans long term. In this case, even a few percent can save several thousand rubles annually.
Below are expert advice on how to achieve lower interest rates.
Guarantors are one type of security. They can serve as:
- individuals who are employed and have a stable income;
- successful individual entrepreneurs;
- legal entities.
The guarantor will also have to prepare documents in accordance with the list developed by the bank. The presence of property, deposits and other assets should be documented.
It should be remembered that if the borrower refuses to pay the loan, the guarantor is also responsible for repaying the debt and risks his credit history. Therefore, entrepreneurs should not let down the people who vouch for them.
Tip 2. Offer the bank property as collateral
The collateral helps convince the bank of solvency, as well as confirm the intention to repay the debt on time.
Lenders have no problem accepting real estate, vehicles, expensive equipment.
Tip 3. Use targeted lending programs
If an individual entrepreneur plans to spend borrowed funds for specific purposes - the purchase of equipment, working capital, for business expansion, it is worth using targeted loan .
Such programs are rare, but the rate for them is usually several percent lower.
By using the tips presented here, you can significantly increase your likelihood of getting a better rate.
9. Answers to frequently asked questions from the site 💬
The topic of lending to individual entrepreneurs is quite broad. Therefore, it is impossible to cover it completely in one publication.
However, quite a lot of questions arise. To save our readers time, we provide answers to the most popular ones.
Question 1. Where can I get a loan for an individual entrepreneur secured by real estate?
The presence of collateral increases the likelihood of receiving approval for a loan application.
Banks offer entrepreneurs several options for secured loans:
- Consumer loans for individuals. Their size depends on the value of the property provided as security. When purchasing real estate with received funds, the return period may exceed 20 years. However, some banks do not provide such loans to individual entrepreneurs.
- Express loans. Their advantage is high speed approval and issuance. However, they are also characterized by high interest rates and small loan amounts.
- Loans designed directly for individual entrepreneurs. You will have to submit a fairly large package of documents, including financial statements. Due to the high risk, the rates for such programs are quite high.
Bank loans are always the most profitable. However, there is also other financial market participants who lend money:
- Pawnshop can issue money on bail. The peculiarities of such a loan are a high rate and a low assessed value of the property. If the loan is not repaid on time, ownership of the pledged property will be transferred to the pawnshop.
- Credit Union - a cooperative that has the status non-profit organization. It is worth joining if you expect regular needs for funds. Loans to cooperative members are issued at a reduced rate.
- Microfinance organizations They give out money quickly enough to almost everyone, without conducting a serious check. However, the stakes here are too high and can reach 1 % in a day.
- Private investors are individuals who lend their money on pre-agreed terms. However, there are quite a lot of scammers operating in the field of private lending.
Juristic documents
For individual entrepreneurs, it is necessary to provide the following documents: a copy of the registration of individual entrepreneurship and a copy of the tax registration certificate. When applying for a loan from a bank that has a current account, you do not need to provide these documents. In this case, the list of documents will be limited to a copy of the passport.Based on these documents, the bank will check your credit history, the presence of other loans, criminal records, etc. If your business involves several founders, then inform the bank about this when submitting the application. He may consider you as a group and provide more credit.
Reporting
The most voluminous package of documents consists of financial and accounting statements. It is checked by the credit manager, who compiles economic analysis, on the basis of which the bank determines your solvency.Mostly individual entrepreneurs keep accounting records in a simplified version. On the one hand, this will allow you not to collect a large package of documents. But on the other hand, they may not be enough to convince the bank of your financial stability. In this regard, you will have to prepare some documents in person.
List of required documents:
- tax return (for 5 quarters). Required condition This reporting is stamped by the tax office. These documents are submitted along with the loan application;
- documents confirming payment of UTII tax (income tax);
- a list of property that is involved in the business. This refers to equipment and buildings that are used in production activities. The list can also include office furniture, computers and other equipment. Many banks determine the loan size depending on the value of the property that can serve as collateral;
- decoding of debtors - a list of everyone who owes you with repayment dates;
- decoding of creditors - a list of those to whom you owe money, as well as the time the debt was formed and the timing of its repayment;
- copies of cash books, certificates of turnover and accounts from servicing banks;
- warehouse certificate - a list of all goods that are currently in the warehouse;
- calculations for manufactured products or prices for manufactured goods;
- invoice with prices for purchased raw materials;
- certificates of fixed types of expenses (rent, workers’ salaries, utility bills, transportation, etc.).
Management reporting
Often, financial statements are not a real reflection of the financial situation, and banks are well aware of this. For this reason, the need for management reporting arose. It includes real indicators:- by sales revenue. IN in this case this does not mean receipts to the current account, but the actual volume of goods and services sold;
- costs of doing business. Certificate for the purchase of raw materials and necessary materials for production.
Applying for a loan for a project
Before receiving a loan for the implementation of a project, the bank should provide a business plan for its further development. This group of documents includes those that confirm your right to use property in business, as well as agreements with suppliers and customers. The more buildings and equipment there are on your business premises, the greater your chances of getting a loan.Mortgaged property
When applying for an individual entrepreneur loan, the bank will necessarily check the availability of property and offer to issue it as collateral, even if you did not indicate it when submitting the documents. Thus, it will be a guarantee of loan repayment. When registering a pledge, you must provide documents confirming your right to own the property. If we're talking about about real estate or land plots, then you need documents confirming ownership, and for Vehicle– technical passports.What documents should I obtain in advance?
To get a bank loan you need to understand. That the decision to issue it is made not by the credit manager reviewing your documents, but by the credit committee. Therefore, before its meeting, you should take care of the availability of such documents as a certificate of opening a current account, a certificate of debt to the budget and an extract from the individual entrepreneur registration register.As for the statement, some banks may request it themselves, so it is better to check with the bank whether you need to get it. If you have an outstanding debt to the budget, then do not rush to panic. It often happens that the tax service cash are posted to personal accounts with a delay. To confirm payment, you simply need to attach copies of payment orders to your documents.
