But, on the other hand, the operations and financial condition of individual entrepreneurs forced to declare financial and tax reporting in government agencies are much more transparent, subject to analysis and control than the income and expenditure of individuals.
Therefore, individual entrepreneurs in Ukraine, with the successful conduct of their business activities, have much greater opportunities for financial lending in licensed financial institutions. Without exaggeration, entrepreneurs will be pleased at both the classic retail banks and the more niche MFIs.
Features of crediting of IP in network banks. Disadvantages
A feature of large network banks is a very thorough assessment of their financial risks, which is time consuming. Therefore, even if the advertisement of the bank states that the decision on the online credit card they have made in 30 minutes, this is unconditional to believe.
To apply for a loan at a network bank, an individual entrepreneur must appear in his branch personally (though in a privileged office intended for work with corporate clients), present for verification certain documents, and in some cases – withstand the test of a bank expert for real state of the private enterprise (PP), at the address of its registration. In addition, a bank that lends to an individual entrepreneur is likely to require the transfer of financial activities of its software (open a current account) to itself. Thus, the total amount of time spent by an IP on making a loan with a network bank can take up to several days.
Also, banks have quite strong requirements for the state of IP (PP), which is destined to go far not every individual entrepreneur:
- in terms of state registration, which should be at least one year and sometimes not less than two years. Thus, for a novice IP, having just passed state registration, for the money necessary for the initial development of his business, the bank is better not to go (unless of course he has no valuable property as collateral).
Advantages of lending to IP in network banks
But at the same time, by lending to a network bank as an individual entrepreneur, you can count on a number of significant benefits that are difficult to obtain if identified in it as an individual. Thus, subject to the condition of the PP strict requirements of the lending bank, its owner (ENTERPRISE) can count on:
- increased amounts without mortgage lending, up to UAH 300 thousand. And at rather large volumes of operating turnover of PP – on an individual agreement with the bank, up to millions of hryvnias.
- extended terms without mortgage lending – up to 36 months;
- reduced interest rates on the loan (in comparison with non-mortgage consumer loans for individuals, as well as in comparison with MFI credit conditions);