What should I know when obtaining a loan for small business development

Demand for loans to small businesses in recent years has significantly increased. In 2008 alone the volume of loans to small businesses increased by 50%. However, the demand for loans for small businesses are not satisfied until the end, somewhere around 20%. Let us try to understand what hinders the development of this segment of the credit market? Bankers and entrepreneurs are absolutely diametrically opposed opinions on the subject. According to bankers, the main barriers to obtaining credit for business development, is the low level of financial literacy in a large number of entrepreneurs, lack of assets that the bank could take a pledge, the risks of loan default, and the lack of support for small businesses from the state. Long-term loan application, high effective interest rate, banks' reluctance to lend to business start - so businessmen explain the main reasons hindering the development of credit market for small businesses. Entrepreneurs wishing to get a loan for small business development, must pay attention to the following: 1. Bank asked to lay the property owned by the entrepreneur in ownership. Moreover, this property must be liquid, that is, must have a certain market demand in case of sale of such property at public auction. Although there are banks that can issue credit without collateral, to be understood that a large amount of credit in this case can not count, besides unsecured loan will be considerably more expensive mortgage. 2. To get serious about writing a business plan. This applies to the content of a business plan, and its form. In numbers, the business plan should not be inaccurate, the text of the business plan should be "readable" and understandable to the credit committee of the bank. In the case of a loan at a relatively small amount for business (up to 1 million rubles) a business plan may not be necessary. 3. Do not forget that the loan is always accompanied by and additional costs for the entrepreneur. Your bank may charge a fee for opening and servicing the loan account. Also need to insure the mortgage. Sometimes banks require a notarized contract of pledge. The cost of notarization passed on to the borrower. 4. Be sure to check the customer will be held on the subject of his pay. Required to provide to the bank documents to prove strong financial position of the enterprise. Real turnover figures should correspond to the available financial instruments. 5. Banks are more willing to lend to business customers based on cash service. So do not be amiss to ask the bank to service for which the enterprise is located, at the expense of the possibility of granting credit for business development. 6. Terms of the loan. While many banks and declare that the filing of documents to the Bank prior to receipt of money to the account is held not more than a week, in reality, this period may seriously delayed. Not be amiss to play it safe and submit a credit application once in two different bank (if the money is needed urgently). Thus, there are still many challenges to the development of small business lending. But the point headway, entrepreneurs, and banks are increasingly finding common ground among themselves.