Lending is an effective means for business development. Banking institutions are an integral part of the business environment. Not every organization can attract a sufficient number of investors to develop or form its project. The banking sector stimulates the financing of commercial enterprises on the basis of profit, expressed in interest rates. This article will talk about loans to legal entities, lending rates and the possibility of obtaining a loan from Russian banks in 2018.
Conditions on which banks issue loans
Banking organizations are ready to allocate money for those projects that are profitable or promising in the future. To get a loan, it may not be enough to provide a business project, especially for those entrepreneurs who do not have adequate experience in this area.
Banks are more likely to cooperate with a successful company, which shows a stable profit. Therefore, to obtain a loan is to prepare a financial report on the activities. Most often, the company is credited in the bank, which is its settlement and cash services.
Such a loan scheme opens up the possibility of overdraft. Overdraft is the ability to use money in excess of the balance that is in the account of a legal entity. Simply put, this is an opportunity to go into minus in order to pay off with suppliers or to purchase the required equipment, component materials and other urgent expenses.
This service is provided at a certain percentage, and the overdraft limit is determined by the average turnover of the account. These parameters are determined on an individual basis within the framework of the affordable offer of a banking institution.
All types of loans can be classified according to the purposes for which they are applied:
- replenishment of working capital. Term loans, credit lines and overdrafts are used;
- purchase of commercial vehicles. An analogue of a car loan for legal entities is leasing;
- construction and purchase of real estate are made with the help of collateral financing;
- bank guarantees under contracts and liability to third parties;
- financing of receivables.
Despite the many areas in the lending of legal entities, we can say that the symbols do not play such an important role. In any case, these are loan agreements with interest rates and a specific payment schedule, which can be developed on individual arrangements between commercial organizations.
The average offer of loan rates for legal entities varies from 6 to 20%. The interest rate largely depends on whether liquid collateral will be provided, on the profitability of a particular borrower, the type and purpose of lending. Requirements
In addition to checking solvency and financial documents, banking institutions have the following requirements:
- the age of borrowers in the form of founders, guarantors, responsible persons should vary in age from 18 to 65 years;
- can be credited as representatives of small businesses, individual entrepreneurs, and large companies with different legal statuses (PJSC, LLC and others);
- business must be successful for at least 6 months;
- There is no bad credit debt and no overdue loans to other banks.
To receive funding, you will need to prepare the following set of documents:
- loan application. You can arrange online through the site;
- copy of passports of founders and responsible persons;
- certificate of state. registration;
- financial documentation describing the company’s activities, including tax returns;
- Certificate of Incorporation;
- contacts with suppliers, contractors;
- charter, authorized capital;
- property rights to movable and immovable property.
The correct package of documentation depends on the chosen banking institution, it is necessary to clarify it immediately before processing the transaction.
- You must create an application on the site.
- Wait for the review by the bank, approximately within a week.
- Specialists of the company will contact and consult on possible conditions and a package of documents.
- Contact the office, provide documentation, wait for a decision.
- In the case of a positive response to sign the contract.
Banks can provide both a credit line with a non-revolving limit, and products with a replenished available balance. Payments are possible in the form of monthly payments or quarterly with a delay on the first payment. Cash borrower transfers to an account open for lending.