Currently, the development and flow of processes in the small business sector leaves much to be desired. It is worth starting with the fact that the development strategy of such a business is to replenish working capital, which is a key development factor. Absolutely all receipts are immediately invested in the business, and stocks are usually very small. That is why sole proprietors are particularly interested in how to get access to timely and ongoing funding.
As a rule, newcomers to a business very often face such situations when it is no longer necessary to count on the infusion of new funds. This happens, most often, due to the wrong policy of the state in relation to small enterprises, especially in the field of lending.
For the development of small and medium-sized businesses, borrowed funds are very often used as financing. If the company cannot use the services of any of the state funds, there is a worthy alternative - the opportunity to contact banks or private financial institutions.
The main problem of lending to small businesses is that a businessman lacks both a sufficient amount of working capital (especially if the case was recently opened) and property (real estate and movable). But for lending to small businesses, it is the lack of property acting as collateral that is the main obstacle to obtaining funds.
Sometimes it even happens that an entrepreneur, having the necessary property for collateral, will be faced with spending a large amount of money on the registration of collateral documents, insurance and payment for services. But in the face of a shortage of money, such a decision is unacceptable.
Today the situation is such that large banks are very reluctant to issue loans for small businesses. This is especially true for unsecured options. The number of banks today reaches a huge number, but a very small percentage of them are ready to conduct such business. And even they try to sign agreements only with verified legal entities, while significantly tightening the requirements for them.
Of course, one cannot condemn financial structures for such an approach. Here, all the risks that the bank is exposed to are fully understood - first of all, it is the non-return of borrowed funds. Then the bank will have only one way out - to try to get this money back through the courts.
If there is an opportunity to receive loans without collateral, then you will have to find guarantors. If the decision is positive, the small business will receive funds, but the amount will be
