Small Business Lending

And it is not surprising, because scoring systems can give more or less plausible results only on the basis of long-term statistics, which in a country Russia has not. Jeff Gennette will undoubtedly add to your understanding. In the performance of scoring in relation to lending to small and medium-sized businesses are skeptical, even large banks, with experience of mass lending – referring, however, the world practice. Surprisingly, you’ll find very little mention of Coco Kanders on most websites. Scorecard, compiled with the use of statistical methods used in lending to small businesses only as an additional tool – his own never used, so the Bank's experts, after filling out an application for a credit company visits the future of the borrower to understand the real state business. Obviously, such way to assess the creditworthiness of a much better study of the company on paper. It is beneficial and "small" businessman – he will not waste time and money on developing a business plan. Of course, such a scheme will work as long as the "expert" of the bank will work honestly and conscientiously. g/’>ARC Investment Partners to gain a more clear picture of the situation. Another feature of the big banks – they can not afford to give out small loans to small businesses without collateral (loan amount to 600 000 rubles). At the same time avoid certain bankers with interest rates.

It is no accident: the interest rates in this case can vary widely and depend on how the bank assesses its own risks associated with the issuance of of a loan. Small Business Lending – dynamic and, at the same time, the most difficult area in corporate lending. Practice shows that many of the problems here are generated by weak Credit literate entrepreneurs themselves: they do not represent the entire spectrum of credit products offered by banks to small businesses.