Small business lending in a crisis

Lack of funds for lending institutions to feel the all: how individuals and small businesses. Loans after the crisis began to be issued on different terms - a higher percentage for the best mortgage and significantly tightened the choice of borrowers. However, the small business lending liquidity crisis has affected the least. Banks refuse to long-term credit schemes, scaling down mortgage programs, but do not plan to limit the issuance of business credit. Given the shortage of resources, the process of obtaining a loan may be slightly delayed, but that is no reason to refuse credit. Small business today put in a slightly more stringent conditions. Slightly increased interest rates: the average number of business loans is 15-19% per annum. And perfect in the eyes of the bank, borrowers can apply for their decline: customers with good credit history is usually a discount (usually no more than 1%). Strong financial position, transparent accounting, the presence of liquid mortgage, simplify small business loan. In the best of circumstances found themselves so-called regular customers - organizations and individual entrepreneurs who have already credited to the bank. Banks are betting on an increase in the number of such clients and offer them better terms on loans to business - the benefits of maturity of business credit, lower requirements for its collateralized, individual interest rate cut. The main problem of small business lending in the current crisis are short term business loans. According to statistics, over 80% of small business lending is issued for less than a year. For most organizations, especially those working in trade, this is not a disadvantage: in one year by paying their loans, you can get a new business loan, and his condition, may be the best. The market for lending to small businesses growing and improving - many banks offer business loans for 3, 5 or even 7 years. Another thing is that the effective interest rate on such loans will be slightly higher.