Банковское дело. 2

Титульный лист

 

 

Сontent

 

Аbstact 3

Chapter 1. The current tendencies and problems of financing of small business in Russia 4

1.1  Small business: current state and main problems of development 4

1.2  Тopical issues of transparency of the tax report of small business 11

1.3  Basis of the size of an interest rate of crediting 12

1.4  Mortgage providing when crediting subjects of small business 13

1.5 The guarantee as a way of providing obligations for the credit as pledge 16

Chapter 2. Рledge providing credit 20

2.1 Pluses and minuses of mortgage providing the bank credit for the organizations of small business 20

2.2 Types of mortgage providing in credit programs various banks / Comparison of different types of providing on the credit 22

2.3 Optimum solution of mortgage providing credit to small business 30

Conclusions and Recommendations 36

Bibliography 41

 

Аbstact

Transition of Russia to market economy was caused by development of the small business enterprises, needing for the development in credit support. By means of the credit mechanism of the enterprise receive the means necessary for them for normal work. Now subjects of small business are at a great disadvantage in the financial market: high interest rates, existence of insufficient providing on the credit and other difficulties complicate implementation of investment projects. However this sector has high potential of development, and cooperation of small business enterprises with banks is mutually advantageous. How optimum to resolve all contradictions existing between them at present - in it and relevance of this problem consists.

For support of small business by the state programs in which one of the main actions is financial and credit and investment support of small business are developed and accepted.

The theoretical and practical importance of a problem of crediting of subjects of small business defined a work subject: "Bank Crediting as a method of small business support in Russian Federation"

Object of research: small business.

Object of research: types of bank crediting of subjects of small business.

The thesis purpose - to investigate the main problems of this sector and to find the optimum decision in the absence of mortgage property when crediting.

Research problems:

1. To study scientific and methodical literature on a research problem.
2. To analyse the main problems of crediting of small business enterprises.
3. On the example of a certain company to show an optimum way of permission of credit providing.

Work consists of the introduction, three heads, the conclusion, the list of the studied literature, the appendix.

Chapter 1. The current tendencies and problems of financing of small business in Russia

1.1  Small business: current state and main problems of development

Small business enterprises face problems of formation of financial resources as during formation, so during development and growth.

With development of financing of small business in Russia there were many banks offering the credits to small business. It is often heavy to the businessman, wishing to obtain the credit for business to make the weighed choice for this or that bank. In order that is comprehended to approach to a problem of a choice of bank and the crediting program, it is necessary to have idea of what advantages provides the bank when crediting.

The condition of the Russian bank crediting, its availability are defined by price and not price conditions. Rates and the additional commissions, and to not price the maximum terms and volumes of the credits, requirements to a financial position of the borrower and quality of providing on the credit belong to the price.

Credit products interesting to the smallest business become an important factor of the competition also. Crediting parameters (requirements to pledges, terms, the schedule of payments) who can offer banks while remain not too attractive because of even while high interest rates.

The main tendencies in the market of financing of small business treat:

1)  Constantly a growing demand from small business on banking services;

2)  Decrease in rates on ruble and currency loans, increase in terms of crediting;

3)  Standardization of process of crediting by development of skoringovy technologies;

4)  Mitigation of bank requirements to the borrower;

5)  Activization of activity of foreign banks;

6)  Expansion of a circle of credit products.

The loans granted to small business, can be classified by a number of signs:

1 . On a way of granting the credits which have been given out to small business, share on:

1)  Standard;

1)  Credit lines with a delivery limit;

2)  Credit lines with a debt limit;

3)  Overdraft;

4)  Leasing.

2 . In use directions (objects of crediting) the credits are subdivided as follows:

1) On replenishment of current assets;

2) On small investments;

3) On financing of working capital and the investment purposes;

4) On payment of settlement documents from the settlement account of the client;

5) On technological rearmament;

6) On equipment purchase;

7) On participation of small business in national projects.

8) On the priority branch directions, economically the most significant for the region.

3 . On terms of crediting it is possible to allocate such types of loan, as:

1) Short-term (term from one day to one year);

2) Medium-term (term from one to three years);

3) Long-term (for over three years).

This classification is taken as a basis when developing drafts of standards on main types of the credit products offered subjects of small business. It is thus expedient that development of the specified standards was carried out by banks – leaders of the market of financing of the small business which practice of work could serve as a sample for other banks

Now the number of potential borrowers - subjects of small business is estimated at the level of 2,5 million clients, and the volume of demand for credit resources, by different estimates, hesitates within 10 - 40 bln. dollars.

In many banks the share of the credits, the given-out small business enterprises makes 70%.  The direct leader in the market of financing of small business is the Sberbank.

He is the largest participant of this market. Its credit portfolio for January 01, 2009 made 600 billion rubles. Its share by estimates makes about 50%, however in process of entry into the market of other players gradually decreases. Other banks occupy other 50% and is the main object of growth and show prompt accumulation of volumes of crediting. The volume of the credits given out by them in 2009 equaled 787,03 billion rubles.

During 2009 small business of Russia managed to attract in 20 largest banks about 150 thousand credits for total amount about 900 billion rubles. The market very painfully reacted to economic recession. The Savings Bank gave out to small and medium business about 83 thousand credits approximately on 400 billion rubles. Portfolios of the credits to small and average businessmen of Uralsib and Renaissance banks were pressed down respectively for 30% and 10%. At the same time a half of banks of "the big twenty" could increase the credit portfolios. SB Bank and Yuniastrum Bank who has increased the portfolios of the credits to small and medium business more than twice achieved the best results.

Dynamics of bank crediting allows to call it in recent years most actively developing segment of the Russian financial market. So, according to Rosstat for January 1, 2013 the volume of crediting of the Russian banks made 32 886,9 billion rubles that is 71,5% more than on the same number of 2010 and for 17,8%, than for January 1, 2012

Table 1. Dynamics of the credits, deposits and the other placed means provided to the organizations, individuals and the credit organizations for 2010-2013 for the beginning of year.

 

Уear	2010	2011	2012	2013
The credits, deposits and the other placed means provided to the organizations, individuals and the credit organizations	19179,6	21537,3	27911,6	32886,9
As a percentage by the previous period		12,29	29,60	17,83

It is possible to draw a conclusion that crediting volume as a whole promptly grows, in particular, since the middle of 2011 as it is presented in figure 1.

1. Figure 1. The total amount of crediting by banks in dynamics from 2010 to 2013.
2. When financing small business banks and businessmen meet crediting problems. For the last three - four years the volume of financing of small business grew by 80%. The need of this branch for borrowed funds is satisfied today no more than for 15-17%. More optimistically adjusted financiers speak about 20% of a saturation of the market.
3. For clarification of more detailed list of the main problems of crediting we addressed to the expert - the head of the credit department of Sberbank Safonov Alexey Valeryevich. (Link to the appendix)
4. In his opinion, difficulties which meet both banks, and businessmen there is a lot of. The volume of the detailed description and the analysis of each of them won't fit into a thesis framework. Therefore we only will consider the main positions from its interview.
5. For a start, Safonov Alexey Valeryevich suggested to divide conditionally all problems of crediting for two groups are the questions connected with the general economic situation in our country and questions, arising directly in policy of the bank. These two groups, in his opinion, are directly interconnected among themselves. Other experts consider as the main problems imperfection of the Russian legislation, ignorance by businessmen of basic laws and lack of really reliable pledges as the majority of beginning businessmen have no liquid property.
6. It is possible to consider as an important factor the direct relation of banks to the Russian small business. As a whole it negative and in it isn't present trust "note". Domestic business as that exists not so long term finally to be created. Banks don't have "on hands" developed reputations and long credit stories. According to Safonov, credit scoring will allow correctly will estimate credit risk.
7. However, other experts don't consider it as a worthy method are sure of other approach, including the most effective system which was developed by Association of the Russian banks more. It mainly concerns legal entities, but with its help the assessment of individuals is possible also. This technique includes some important criteria to which there has to correspond the potential solvent borrower:

1 . Solidity – an indicator reflecting responsibility of the management of the organization, timeliness of payment of the previous loans;

2 . Ability – includes data on production and production realization by the businessman, his competitiveness;

3 . Profitability – indicates preference of investments in a certain project;

4 . The reality – gives information on possibility of realization by the borrower of the plans;

5 . Validity – the client has to confirm the credit sum about which he asks, actual data and calculations;

6 . Recoverability – ability to extinguish a loan at the expense of real estate or other material values which are in property at the debtor in case the project doesn't make expected profit;

7 . Security of a loan with the legal rights of the debtor.

Such rating assessment of solvency of the borrower will help bank to reveal clients who are really capable to repay a debt in due time. Thus it is necessary to study the last four indicators, analyzing grouped articles of balance in such directions: liquidity, security, profitability and turnover of assets of the client. In each of the created groups one most indicative is defined for this organization the characteristic, and then on it statistical data gather and formed.

However, any example of an assessment of solvency of the borrower will show that this system, as well as all previous, has the shortcomings. Including, with its help it is impossible to analyse solvency of the client with whom the bank cooperates long term, she isn't able to consider risk factors which are shown only later certain time. All this testifies that improvement of a technique of an assessment of solvency of the borrower is necessary.

For the solution of problems of financing of business it is necessary integrated and system approach. Support has to proceed as from small business, and the state. The main task of banks in the conditions of crediting development - increase of trust of businessmen to the banking products

It will be for this purpose expedient to take the following measures:

1) Development of system of standards of financing of small business

2) Gradual improvement of credit conditions

3) Development of starting projects.

4) Development of credit bureaus.

5) Trust increase between banks and business

If to speak generally about financing of small and medium business in our country, despite growth of this segment of the market of credit services in the last some years, it needs further development on a number of the directions. Among them improvement of system of an assessment of the enterprises of small and medium business, creation of new credit programs, decrease in interest rates, improvement of credit conditions and so on.

In the conclusion it is possible to note that the most part of the businessmen which has shared the experience, allocated five main reasons, on which not favourably to take the credit:

1) High percent;

2) Short maturity dates;

3) Absence or insufficiency of the starting capital of small enterprise;

4) Limitation of the offer of the credits for small business and absence of the competitive market of services in crediting;

5) Complexity and duration of procedure of receiving the bank credit.

These are those problems which frighten the businessman in the procedure of crediting. Besides these difficulties at businessmen there are a lot of internal problems which also complicate receiving the bank credits:

1) The opaque and doubtful reporting, absence of incentives for adequate reflection of financial results in the reporting (naturally, it reduces possibility of receiving in banks of the credits for replenishment of current assets and the investment purposes);

2) The insignificant scale of business complicating an assessment of its condition;

3) Poor quality of study of business plans at attraction of the credits;

4) Instability of the legislation, mainly in the field of the taxation of small enterprise;

5) Low level of legal literacy of the borrower for appropriate registration of all necessary documents.

Common problem for all sphere is low knowledge of businessmen of existing programs and privileges at credit registration. People who are going to take the credit, often don't know where to address and with what to begin.

1.2  Тopical issues of transparency of the tax report of small business

Among the main problems on which banks don't aspire in perspective sector, - "opacity" of our businessmen. According to experts, the share of a shadow turn in the Russian small business makes from 30% to 50%. Among basic changes in the tax legislation in favor of small business - increase in the top level of an annual turnover at which it is possible to use the simplified system of the taxation, from present 15 million rubles to 20 million. At the simplified form of the taxation of the enterprise pay or 15% from profit, or 6% - of a turn and thus get rid at once of several taxes. In this regard the fact the majority of small enterprises don't show officially all the accounts department for the purpose of taxation optimization. Respectively, it is difficult to bank experts to define a financial condition of the borrower as many enterprises are characterized by lack of turnovers of the settlement account or in general absence of the settlement account (for example, at the individual entrepreneur). After all the client, as a rule, doesn't keep accounting and financial statements in that look which is required from potential borrowers.

As a result small enterprises are considered by commercial banks as big credit risk that forces them to demand high level of providing.  Unlike legal entities, to the individual entrepreneur without formation of legal entity (namely more than 90% of the given-out credits are the share of this category) difficult to offer as pledge rather liquid property which could interest bank.  Especially it concerns regional banks.  So, banks admitted that the credits generally are given in providing inventory items, including the equipment, finished goods and real estate.

Such preferences depend not so much on an assessment of quality of providing in representation of banks, how many on an assessment of types of providing with Bank of Russia. According to requirements of Bank of Russia the credit organizations are obliged to classify all loans by the risk degree, thus one of factors of an assessment of risk the type of providing is. Guarantees, including guarantees of authorities, guarantees, pledge of securities isn't the first-class providing therefore the loans issued under these types of providing, belong to more high risk from the point of view of the Central bank. Respectively, banks are obliged to create reserves which thus don't belong on reduction of taxable base in a bigger size.

Obviously, in these cases not starting businessman or small enterprise, and already taken place business is credited. Usually banks demand successful activity of the enterprise within six months. But also there is a problem - essential costs of registration of pledge result in difficulties in providing liquid providing the required credits.

1.3  Basis of the size of an interest rate of crediting

One of the most important problems of crediting legal is definition of an interest rate. The rate on the credit has to be such that the borrower and bank got profit and compensated risks. The competition level in the market of the bank credits is higher, the percent rate is lower. To legal entities it is unprofitable to be credited on the overestimated rates in large banks, at the same time the enterprises meeting rigid requirements of such banks, it isn't enough. At average banks of the requirement to potential borrowers aren't so high, and they are ready to work individually with each borrower. But they have no enough of resources completely to satisfy requirements of business.

The main indicator of the price of a banking product (deposits and loans) is the interest rate, or an interest rate. It is defined as the relation of the income to the size of the granted loan and is expressed as a percentage. Most often the interest rate is specified in the form of annual percent. Growth of an interest rate testifies to credit rise in price, falling – to reduction in cost. Change of cost of the credit is of great importance for bank, for the businessman and economy as a whole. At increase in cost of the credit sources of expansion of production are reduced.

Principles of creation of policy of an interest rate: close connection with commercialization of activity of firm; simultaneous regulation of an interest rate for deposit and loan operations; establishment of the differentiated sizes of a rate.

In the analysis of change of an interest rate consider:

External factors:

– Monetary policy. Changing discount rate, the Central Bank can influence volumes of provided loans: the policy of "expensive money" – discount rate raises, reducing volumes of provided loans; policy of "cheap money" – on the contrary.

– The competition in the market of credit services. Lower interest rates for the credits to small business allow to count on attraction of a large number of representatives of small business.

Internal factors: degree of risk of the outstanding credit; receiving profit on loan operations; nature of the provided providing timely repayment of the loan; loan size; loan maturity date; expenses on registration of the loan and control; character of the relations between the creditor and the borrower.

The percentage policy shouldn't lead to reduction of an interbank turn – a major factor of profit.

The factors influencing the sizes of interest rates:

– Inflation; nominal interest rates have to be established at level, sufficient for a covering of expected rates of inflation during all term of investment, and to provide real return.

– Real return which in turn depends on investment risk.

– Demand for loans.

– Change of requirement of public sector in borrowed funds.

– Exchange rate of currencies. When an interest rate abroad and rates on investments in foreign currency are high, a rate on investments in national currency have to be also high in order to avoid a capital modulation abroad and considerable falling of a rate of national currency.

Percent for the credit – the price for credit resources. Can be charged both simple, and difficult percent.

1.4  Mortgage providing when crediting subjects of small business

Crediting of small firms is considerably slowed down by uncertainty in a question of mortgage providing. Earlier Russian banks as pledge considered option even goods in a turn, but now when the risk increases to remain with goods in the leased territory, the credit organizations become more careful.

The analysis of financing of small business shows that very painful subject in this question also is the real estate. The majority of credit institutions call it in the list prime a pledge subject, but they not too show consideration for the analysis of mortgage real estate.

The matter is that now approach during the work with offered clients real estate objects differs a surface. Banks neglect and even ignore field and careful cameral checks. (to replace similar)

On the vast majority of the mortgage loans granted for business, the staff of bank doesn't find time to leave into place. And if leave, check only existence of the called object.

However in some part of obligatory requirements banks are yet ready to make concessions. In particular, still obligatory for small enterprises there is a condition of providing pledge. As a rule, providing on the credit is any kind of liquid property are there can be a trade and production equipment, motor transport, equipment, goods in a turn, personal property of the owner of business, the guarantee of financially well-founded enterprises, securities. Besides, as providing on the credit can serve and real estate, especially in those cases if it is a question of receiving the large sums. So, for example, owners of shops, cafe, auto repair shops, beauty shops and other institutions can quite count on receiving loans on the security of the rooms - warehouses or offices. For this purpose together with the demand for receiving the credit the businessman has to submit the corresponding documentation in which it has to be specified to bank that rooms are its property. There are also exit checks of a creditopoluchatel: the loan officer visits the enterprise for a business process assessment, and at the same time and the property offered as pledge.

Some banks when crediting on the security of real estate even are ready to provide more favorable conditions on loans.

At the same time, according to in Vneshtorgbank, financial institutions not so willingly consider real estate as it is difficult to issue it as pledge (it is necessary to present a huge number of documents), and subsequently and to realize while the credits to small business most often aren't long-term and are given for the small sums. "Time of registration of pledge of real estate from the moment of collecting a full package of documents before final registration of the contract extends. Across Moscow this term can make of 30 days and more", - the head of department of microcredit of Moskomprivatbank Sergey Timofeev explains. And the point isn't that bankers slowly work, simply they can't influence registration and document registration speed in government bodies (in Moscow Moskomregistration is engaged in it). Meanwhile for the borrower the credit in a month can be already irrelevant." At the same time and for banks the rule works: the more long on terms the issuance of credit is removed, the risks on its return" more increase, - Sergey Timofeev adds. Therefore some banks are ready to make out real estate only as additional providing on the credits. The head of department of crediting of the Moscow credit bank Alfy Shaymyardyanova specifies that often at registration as proof of real estate registration and pledge of the earth, especially is necessary if it is a question of the first floors of buildings. It is problematic as the earth generally is on a leasehold basis, and other government body has to give a consent to pledge already. Besides, registration of pledge demands transaction registration from the notary which cost of services makes to 1,5% from mortgage that is rather powerful for a pocket of the "small" borrower. All this frightens off from such type of crediting of businessmen.

Bankers are sure that development and acceptance of certain legislative norms are extremely necessary for simplification of procedure of financing of small business. According to Sergey Timofeev from Moskomprivatbank, the legislative base which would allow banks bravely in short terms is necessary to consider and make out as a deposit as objects of inhabited sector, and commercial real estate. Alfiya Shaymyardyanova explains: first of all it is necessary to simplify and facilitate procedure of registration of pledge in registration bodies that it took no more than a week.

It is necessary to introduce the program of information support of businessmen which would explain advantage of crediting in banks including on the security of real estate at the level of the state. "Unfortunately, not all know that such pledge, and are afraid to lose it, especially real estate: it often is the only liquid property of businessmen", - Alfiya Shaymyardyanova explains, - "therefore it is necessary to increase culture of borrowers. They have to understand: at registration as proof of real estate the bank doesn't become the owner of rooms. Pledge is an additional tool for decrease in credit risks which can be put in action only at violation of the contractual obligation for repayment of the loan and only according to legislative norms"

Today to return pledge through court rather difficult, on it a lot of time and means leaves. Besides there is no adequate mortgage legislation and infrastructure of realization of pledges. If to follow existing regulations, pledge is, as a rule, realized no more than for a half of its valid cost. Sale of pledge is carried out through system of tenders, and its price considerably falls because of the bad organization of the auction. Therefore creditor banks demand from potential borrowers of 200% of mortgage providing the credit that not in power to many small enterprises.

1.5 The guarantee as a way of providing obligations for the credit as pledge

Main objective of use by banks of various ways of providing performance of obligations according to the credit agreement is minimization of possible losses of bank in case of non-performance by the borrower of the obligations under the contract. One of such ways is the guarantee.

The essence of the guarantee is that the guarantor undertakes to be responsible before the creditor of other person for execution by this person of obligations completely or partially.

The guarantee increases probability of return of a debt as in case of violation by the debtor of the obligations the creditor can make the demands to the guarantor for the creditor. The contract of guarantee is signed in writing, and its non-compliance involves invalidity of the contract.

In case of non-execution or inadequate performance of obligations the guarantor and the debtor answer before bank solidary, that is the creditor (bank) can claim a debt not only from all debtors in common, but also from any of them separately, as completely, and regarding a debt. That is the guarantor answers before the creditor in the same volume, as the debtor, including payment of percent, compensation of a legal cost on collection of debt and other losses of the creditor. It occurs if the contract of guarantee doesn't provide any other conditions. As for partial responsibility, for example, the situation when the guarantor undertakes to compensate only a principal debt without payment of a penalty or the sum of percent for using loan money over an established period is possible. Thus, the instruction in the contract for vicarious liability for return of a debt and payment of percent should be considered as vicarious liability restriction only these sums.

In case of prolongation of period of validity of the contract, change of conditions which attract increase in responsibility or adverse effects for the guarantor, and also at transfer of a debt to other debtor, it is necessary to receive previously a consent of the guarantor to change of the corresponding terms of the contract of the guarantee.

Who can act as the guarantor?

The main demands made to guarantors, the following is:  as the guarantor the person of dopensionny age having stable earnings, documented (and also other property for performance of obligations), not made responsible has to support the financial crimes, having continuous registration in the territory of the Russian Federation etc.

Banks have usually a positive attitude towards guarantors relatives or the management of the company in which the potential creditopoluchatel works.

Anyway, the creditor bank will claim from guarantors the same volume of information, as from the borrower.  All data are fixed in the separate questionnaire and certified by the personal signature of the guarantor.

Rights of the guarantor.

First, to the guarantor who fulfilled the obligation, pass the rights of the creditor according to this obligation.  The rights to collection of debt from the borrower pass at a rate of the obligation fulfilled by the guarantor and are made out, as a rule, by the contract on a requirement concession.

Secondly, the guarantor has the right to demand from the debtor of payment of percent for the sum which that paid to the creditor, and compensation of other losses suffered in connection with responsibility on obligations of the debtor.

Thirdly, the guarantor has the right to receive all documents certifying the requirement to the debtor, and all rights providing this requirement from the creditor.  For presentation to the debtor of requirements about return of means (probably, through court), it is necessary to have the contract about requirement concessions, the contract of guarantee, payment documents on payment of requirements of bank, the copy of the credit agreement, etc.

Before to assume duties of the guarantor, you need to calculate carefully all expenses on the credit and to compare with real possibility of their repayment:  whether there is a credit nonpayment by the debtor by threat for welfare and wellbeing you and your family?

Remember that, acting as the guarantor, you limit yourselves in opportunity to take the credit:  the bank will surely take an interest, whether there are at you credits unpaid finally and whether are you a guarantor on any business deal.

You shouldn't forget and that non-execution of obligations for the credit affects negatively not only credit history of the debtor, but also credit history of the person acting as the guarantor that also can cause further difficulties when receiving the credit.

Financing of small business in the next years becomes one of the most fast-growing segments of the market of banking services. Work with small business opens opportunity significantly to increase volumes of active and passive operations for banks. It is especially actual for large banks which face decrease in demand for the credits from the large corporate borrowers who have had an opportunity to be credited under lower interest in the western markets of the capital, and also for the regional credit organizations which experience the increasing competition from outside the "capital" banks which are carrying out regional expansion.

Small business is an integral part of market economy. For it special mobility, flexibility and high efficiency is characteristic. Small enterprises can be created in any sector of the housekeeper in reply to unsatisfied needs of the population. These and other advantages of small business serve as stimulators for development of national economy and therefore the state is obliged to give essential support to development of small business. At shortage of money on financing heads of small business enterprises address in commercial banks with the demand for the credit. The problem of financing of small and medium business in our country remains unresolved throughout the long period of time. It should be noted some contradiction: on the one hand businessmen need money, and banks are ready to provide them to them, and on the other hand, according to polls which have been carried out among representatives of small business only about 12% of businessmen regularly possess the bank credits.

As a whole the provision of the environment of financing of small business in Russia leaves much to be desired. The state doesn't undertake serious measures for support of beginning businessmen, and bank conditions can be considered at all "draconian". Against great demand, in the crediting market, great popularity "the shadow sector" has crediting.

Chapter 2. Рledge providing credit

2.1 Pluses and minuses of mortgage providing the bank credit for the organizations of small business

Today for successful development of small business the problem of fast access to credit resources of banks has great value. But the main obstacle which businessmen – lack of the liquid property necessary for providing the bank credits face.

For example, Unikod Ltd - the specialized company on design, production and delivery of industrial refrigerating appliances, ventilation and conditioning systems. In the list of long-term goals - expansion of the range of production and opening of 4 new branches of shops on which the bank credit was required. The Unikod Ltd company is the private family business, registered in the form of limited liability company. Founders of the company are the father and the son: Ivanov Peter Nikolaevich and Ivanov Valery Petrovitch with equal individual share. Finansiroaniye is carried out by Unikod Ltd at the expense of personal means of founders. Further all financial investments were made at the expense of company profit. At the moment external financing of 7 000 000 000 rub for start of 4 branches that will allow to expand a sales market of production of the company significantly is required.

So, it is necessary for the Unikod Ltd company of 7 million rubles on business development which it intended to take on credit. And not high rates, namely mortgage providing appear the main difficulty on a way of receiving the credit actually.

The management of the company considers that it is necessary to be aware of the main requirements of banks to mortgage providing the credits as it directly influences the cost both the maximum sum of the credit and percent.

It became clear that mortgage providing for banks are:

•   real estate — inhabited and commercial;

•  special equipment;

•   vehicles.

On representation of banks is the most liquid property, and it prefer to see as a part of mortgage providing the credits.

Having studied rules of granting the credits in other banks, it appeared that many demand from the businessman providing the guarantee of the third parties. In case the owner of the company is registered as SP, the guarantee of the spouse or the spouse obligatory.

Advantages of mortgage providing the credit to businessmen become:

•  Minimum rate.

•  The simplified procedure of registration (in fact, it a little than differs from process of receiving the usual mortgage consumer credit).

•  The maximum sum (the bank will give out to you to 80% from the cost of housing or the personal estate pledged).

•  Speed of registration.

•  Inappropriate mission of the loan. Quite often financial help to small business is that banks give out the credits directed on purchase of the equipment, repair of floor spaces, etc. – that is on strictly established purposes. The businessman has no right to redistribute tranches and to direct, for example, part of means not on production purchase, and on vehicle fleet expansion. The credits which are given to "beginners" according to inappropriate programs, give them free rain.

However in mortgage providing there are also "weak" places for businessmen. Any property exposed by founders as providing on the credit, has to undergo two compulsory procedures:

•  insurance of a subject of providing upon risk of damage and loss

•  procedure of an assessment of mortgage property;

And here some nuances which aren't absolutely favorable to the company are investigated.

1)  the bank demands to carry out an assessment of mortgage property only in the estimated companies with which cooperates long ago. In practice it becomes clear that the cost of mortgage property of the company is underestimated.

2)   The size of the credit makes only 70% from the cost of mortgage property and if as mortgage property the goods — 50% act.  That is the bank insures itself against risk not repayment of the loan.

3)  At insurance the borrower has the right to choose insurance company independently. But banks at insurance of mortgage property, demand from the borrower of insurance of property on all period of validity of the credit agreement and on all cost.

As a result it turns out that insurance of pledge and an assessment only increase the credit cost as according to mortgage property and expenses on insurance the businessman will pay all expenses from own means, and considering that the cost of the services connected with an assessment and insurance of mortgage property, often becomes attached to the cost of the property, it is possible to tell that the rate of percent on the credit as a result will make 2%-3% more than a rate which the bank offers in the crediting contract taking into account the commission for issuance of credit and expenses on maintaining the credit account.

The situation which founders of Unikod Ltd, decided to use services of banks for financing of the small business faced, is that the real cost of the credit consists not only of a rate of percent on the credit, but includes the commission for issuance of credit, expenses on maintaining the loan account, and also expenses on an assessment and insurance of the credit of property put in providing.

2.2 Types of mortgage providing in credit programs various banks / Comparison of different types of providing on the credit

Today there is a huge number of banks, and not less huge number of the credit programs provided by them to the organizations of small business.

Despite it, the majority of businessmen still are interested in the oldest bank working in this direction. The Savings Bank gives out the credits to small business some years, and in recent years credit conditions became much softer also the priyemlemy. Let's notice that for today in Sberbank nearly a quarter of all small enterprises of our country is served.

More than 100 million individuals and about 1 million enterprises use services of Sberbank. The bank has the most extensive branch network in Russia: more than 18 thousand offices and internal structural divisions. The foreign network of Bank consists of subsidiary banks, branches and representations in 20 countries, including in CIS countries, the Central and Eastern Europe and Turkey.

For receiving the credit the enterprise has to correspond to the following criteria:

-  experience of officially registered enterprise of 6 months

-  total annual turnover (including assets) no more than 150.000.000 rubles

Credit conditions of small business in Sberbank today:

-  demand consideration – 8 days

-  credit term – no more than 3 years

-  the credit sum – isn't limited

-  the mortgage credit – 25% from the credit sum

-  possibility of the credit without pledge – yes (term no more than 18 months).

Indisputable advantages when crediting in Sberbank it is possible to carry the minimum package of starting documents, delivery of all sum of the credit or its part cash, a variety of forms and ways of repayment of the credit, an individual approach to each client.

As a rule, the credit for small business has to be repaid by equal shares. It is provided in the contract. However it is possible to revise terms of the contract in an individual order with the manager. It is very convenient if, for example, again opened branches Unikod Ltd begin to make notable profit, and founders will decide to extinguish all sum of the credit at once. Or, on the contrary, on a case of emergence of certain difficulties in business will be possible for some time to suspend payments on the credit.

The necessary package of documents in Sberbank is insignificant:

-  The statement in any form for receiving the credit, handwritten, with the indication of the purpose of the credit, the sum, term, the list of property which will be pledged, the legal address of the company

-   Constituent and registration documents on the company

-  Financial documents (the balance sheet and the profit and loss report on 5 reporting, the tax declaration and the cash-book for 4 tax periods), documents on providing the credit.

During demand consideration the Sberbank will study credit history of the organization in other establishments (including, probably, and receiving the consumer credits of founders as individuals).

For the purpose of a minimizirovaniye of expenses of time the simplified form of crediting allowing most precisely to define a financial condition of the borrower and quickly to issue the credit with the minimum expenses of time and means is developed for representatives of small business in receiving the credit by Sberbank. The maximum term of consideration of a question of granting the credit of only 7 working days from the moment of receiving by the loan officer of a full package of documents.

The Sberbank of Russia always paid much attention to existence of property providing on the credit.  Its ruler is quite various:  it is real estate, the equipment, vehicles.  Besides, acceptance as proof of property of the third parties is possible.

Small enterprises and businessmen who receive proceeds of credit within credit products of "Business Car", "State order", "Privatization for small business" and "Commercial real estate", as pledge can issue property acquired at the expense of proceeds of credit.

The Sberbank of Russia adheres to flexible policy regarding requirements to types of mortgage property.  For example, if the enterprise works not less than 24 months and has no opportunity to provide any pledge, the Bank can give out credit money without providing.  But the sum of such unsecured credit can't exceed 1 million rubles.