“Hidden Rocks” In Financing Of Small And Medium Business

Search of money for opening of small private business most often is begun with relatives and good acquaintances. It is the easiest, reliable and profitable way, as finance is possible to receive without registration of papers, excess problems and sometimes even without percent. But not all are lucky to have well-to-do relatives or friends having spare 20-40 thousand cu.

If such method to find the necessary means is not for you, usually look for options of the specialized centers of support of entrepreneurs, but it can be not always suitable under selection criteria for receipt of a soft credit.

Then go to “the black market” and, of course, try to obtain a legal bank loan which sometimes doesn’t help the entrepreneur, but on the contrary, becomes a very heavy burden.

Therefore, let’s consider hidden rocks in case of a credit granting.

The very first criterion is bank commission rates. We advise you to carry out small market research and to determine the most profitable rate.

Second “reef” is a banking commission rate for settlement and cash servicing. Often banks expose serious conditions, for example such that you have no right within the time of their crediting to be served and have the credits in other banks. Or they lay down a condition not below what amount you shall see off on your account in creditor bank.

Also, there are some unpleasant commissions which you should pay up. For example, for consideration of your documents, for monthly servicing, early repayment of your loan, for not insurance, untimely settlement and others. They are stated in your agreement and often in small print. It is worth focusing on them your attention and to understand, how much they will constitute in a cash equivalent. You will be very much surprised with some amounts, up to refusal of not profitable credit which seemed interesting to you at first sight.

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