Credit cards Business credit cards Auto Loans Home Loans Auto insurance

Business loans

Lending to businesses or legal entities is cash loans that are issued to a legal entity for the development of entrepreneurial activity on the established terms and conditions for repayment and payment of interest on the loan.

Types of business loans. Fast business loans, working capital loan.

Business loans has its own classification and depends on several signs: term, method of lending and the purpose of the loan.

Credit classification for legal entities in terms of:

- short-term loan concluded for up to one year

- medium-term loan from one to two years

- long-term loan concluded for more than two years

Crediting classification:

1) One-time loan, consisting in a one-time transfer of the entire amount of the loan in full to the current account of the company. There is no limit for such a loan. Another definition of a one-time loan is a commitment, i.e. one-time loan for a fixed term with a fixed percentage.

2) Credit line. This is the provision to the legal entity of a certain way of the formalized obligation of the credit institution to repay loans for a specific time within a specified limit. Also, the credit line is a formalized obligation, which the bank performs for the term agreed upon in the documents and pays the loan to the borrower, not exceeding the established limit, on contractual conditions that differ from the one-time loan.

3) Overdraft. This is a loan issued for operating expenses. It is provided in case of absence or shortage of funds from a legal entity in current accounts. The final payment period should not exceed 6 months. And the period for which overdraft is provided, often does not exceed a month. Overdraft repayment occurs upon receipt of funds on the company's settlement account.

Depending on the purpose of the loan, it is classified into:

Business loans

Credit for business expansion or for replenishment of working capital of the enterprise. It is considered the simplest form of financing. This is due to the fact that this loan does not require collateral, interest rates directly depend on the period and size of the loan, and the credit limit is determined using the company's current working capital.

Credit for the purchase of fixed assets. Such loans are not used for the purchase of fixed assets, transport units, special equipment and real estate. The loan is paid in equal shares, and the key is the products in circulation, equipment, transport, special equipment and real estate, including funds purchased with credit money. The main requirement for the borrower is the presence of business profits during the previous year.

Commercial mortgage. Used for the purchase of non-residential premises to be installed in a warehouse or office space. It is this property that is used as collateral, and interest rates are quite high, unlike those for housing mortgages.

Investment loan. Issued only for a specific investment project, for a period of 3 to 10 years. At the same time, the borrower is obliged to submit to the bank the business plan of his investment program and financial documents for the last years of activity. The pledge of the loan are the assets of the enterprise.

Sun, 09 Dec 2018 16:35 GMTActor Edward Norton is trying to change how the TV industry measures viewershipSun, 09 Dec 2018 15:58 GMTA wintry storm hammering the Southeast grounds more than 1,400 flights, as airlines waive change feesSun, 09 Dec 2018 15:13 GMTGoogle has huge plans for its home city — here's a look at the massive development Sat, 08 Dec 2018 19:00 GMTFord and VW considering an expansive alliance likely to echo across the global auto industrySat, 08 Dec 2018 00:41 GMTCramer Remix: The trade war isn't about trade—it's about global dominationFri, 07 Dec 2018 23:46 GMTCramer's lightning round: There are better drug stocks to own than GlaxoSmithKlineFri, 07 Dec 2018 23:28 GMTCramer: Buy shares in cloud plays Salesforce, Splunk, VMware, Workday on downturnsFri, 07 Dec 2018 23:13 GMTIf the Fed doesn't raise rates this month, the market could panic, Cramer saysFri, 07 Dec 2018 23:13 GMTCramer's game plan: Between the Fed, China and Apple, get ready for more volatilityFri, 07 Dec 2018 21:50 GMTCitigroup needs to slash bonuses, do 'whatever it takes' to cut costs: Wells Fargo analystFri, 07 Dec 2018 21:44 GMTT. Rowe Price's Ellenbogen says public market woes aren't yet punishing tech start-upsFri, 07 Dec 2018 21:22 GMTMexican auto exports to US keep surging as Americans clamor for trucks and SUVsFri, 07 Dec 2018 21:13 GMTApple buys Platoon, a start-up that helps indie musicians get discoveredFri, 07 Dec 2018 21:03 GMTApple and Alphabet erase their gains for the yearFri, 07 Dec 2018 20:40 GMTThe ultimate holiday tipping guide: How much to giveFri, 07 Dec 2018 19:49 GMTUS mall owners have been slow to change for years. But now they're trying to embrace itFri, 07 Dec 2018 18:46 GMTChina launches lunar rover in historic mission to the dark side of the moonFri, 07 Dec 2018 18:35 GMTTop VC deals: Walmart buys; Steph Curry backs travel AI; Salesforce launches Japan fundFri, 07 Dec 2018 18:04 GMTCoca-Cola's chairman thinks we should change how we talk about soda salesFri, 07 Dec 2018 17:53 GMTDelta Air Lines starts offering bare-bones basic economy award tickets to frequent flyersFri, 07 Dec 2018 17:29 GMTCoca-Cola chairman: 'More unknowns, more volatility' are making running a global business tougherFri, 07 Dec 2018 17:25 GMTGE makes it official, lowers dividend to a pennyFri, 07 Dec 2018 16:02 GMTSenator slams Google's censored search engine work in China Fri, 07 Dec 2018 15:34 GMTAltria shutters its e-cigarette brands as it eyes Juul, awaits iQOS decisionFri, 07 Dec 2018 15:30 GMTHere's the one photo the Walmart CEO keeps on his phone to stoke 'healthy paranoia' Fri, 07 Dec 2018 15:27 GMTThe 10 most-liked companies in Germany to work for in 2019, according to GlassdoorFri, 07 Dec 2018 15:18 GMTMicrosoft's cloud business could be bigger than Windows by 2021, KeyBanc saysFri, 07 Dec 2018 13:32 GMTAmazon will start penalizing sellers who ship unsafe packages to its warehouses as violations mountFri, 07 Dec 2018 13:14 GMTMorgan Stanley joins the chorus of Apple price target cuts: 'China smartphone market to blame'Fri, 07 Dec 2018 13:09 GMTBond markets are flashing red and an oil plunge could only make things worse