One of the main rules of business is not to stop and develop. However, to do so, one must periodically «feed» his/her business with new investments. Not always there are available enough resources for this, so one way or another, an entrepreneur wonders where to get them. When it is not a small amount, one can rarely count on friends and relatives. One of the options is business credit. How and where to get a business credit from a bank, how much and on what terms you can get for small business, and why an entrepreneur can be refused, we are going to tell in our material.
Japanese system lending
Any credit organization takes lending to both individuals and legal entities seriously, so the potential borrowers are subject to certain requirements. According to the director of the department of small loans «Kapitalbank» Alisher Makhamadaliyev, experts are studying credit projects and analyze activities of all applicants.
«Since May, we have simplified a procedure for obtaining loans by launching a Japanese-Uzbek program to support small businesses (J-USBP). What does it mean? We are not so much interested in formal accounting documents - very often in small businesses, they do not reflect the real state of affairs. Instead, we look at the business as «lively». Our employees visit their own business location and look at actual, not accounting income and turnover. As a result, we get real information about a client and make a decision. As a rule, an entrepreneur gets a credit within a few days» Alisher Makhamadaliyev said.
Where, when and how much?
All banks have different loan conditions: different interest rates, documentation package, and loan terms. So, for example, to get a loan in «Kapitalbank» is enough to come to the bank, fill in an application, and provide: passport, charter, registration certificate, and lease agreement.
The loan can be set up based on a vehicle, real property, jewelry, etc. It also demands a minimal package of documents: a vehicle’s technical passport or a real estate land registry and, consequently, the certificate of the owner pledged property.
The Bank issues loans, both in national and foreign currency. The maximum amount is one billion UZS or 100,000 USD. Term of repayment of the working capital loan is up to 18 months, and for the main - up to 36 months. The interest rate on total credits is 20%, on foreign currency 8%. As a rule, money business needs quickly, therefore also the term of granting credit in «Kapitalbank» from 3 to 5 days.
Who can be refused?
From May to October, «Kapitalbank» issued credit funds for 173 billion USD for 658 projects. During this time, only 5 projects were denied in loans, which is even less than 1%.
«Those to whom we said «no», these were projects with high risks, which in turn affects loan repayment. Besides, some projects lacked permits (license, certificates, etc.) required for certain types of business activities» - says deputy director of the department Zhakhongir Umarov.
But, according to experts, such «random» projects are few. Entrepreneurs have a conscious approach to getting loans.
