Take credit for starting a business
Posted on Nov 28, 2000 08:15:27 AM
“I am looking for an investor or take credit for starting a business. Need from 20 to 40 thousand dollars. Will consider any offers. ” These ads are full all the sites on the Internet, with at least some relation to business and finance. But what about the banks that promised full support to small businesses and painted in an incredible love for him? “Business Journal” decided to find out whether at least give someone credit for launch of business, or vigorous advertising appeals bankers do not have anything to do with commercial experience start-ups.
When there is need of money, the first thing we do – try to borrow from friends, family and friends. But when the loan was denied, and great-aunt and best friend, we have to go to the bank. Having decided to open a business, the average citizen who has no relatives in the oligarchs, you probably should not hope for friendly loans: sums of something you need, usually considerable. Well, unless you’re going to put up a tent with shavermoy.
Not finding funds to open a business with friends, a beginner entrepreneur goes to the lender. In the hope that there really some money there really is! Indeed, the money is there. Not only about our honor. Why? Loans for business “from scratch” banks are not given. Rely on the assistance of bankers can only company that has successfully worked at least six months. This period some banks are sometimes shortened to three months. But first, all the same to open!
– We do not provide financing services launch projects in the framework of the Program of small business lending, “as there is a high risk of project implementation and profits in accordance with the business plan, so we do not understand the sources of repayment, – says Oleg Skvortsov Deputy Chairman of Absolut Bank.
– Find a bank that sells the massive funding of startups is almost impossible. This is understandable: the bank can not know how successful the idea of an entrepreneur, if he can find buyers for their products, if he has any talent as an organizer – that is, can not calculate the risks of loan default – adds Anna Malysheva, head of credit and medium Small Business Rus-Bank. – In Europe businessmen to help beginners have so-called venture capital funds with government support. We have the same start-up can get a loan mainly on bail already existing business, when risks are borne by the guarantor, which in case of bankruptcy of a startup will service the loan. For example, in the portfolio of Russ-Bank’s share of such loans is large enough – about 5%.
Well, is it worth to go to the lending institution after such statements bankers?
Banks
bank draft, entrepreneur, loan, mortgage, the borrower,- Getting credit for unincorporated business
- Market small business lending
- Microloans for Business
- What is especially syndicated loans
- Holiday credit