Our top 5 tips to get a small business loan


March 1, 2024

Are you ready to start a small business and wondering where you’ll be able to get a loan and what are the conditions for it? The issue of getting the initial capital is one of the main problems for beginner entrepreneurs. You could borrow money from parents or friends, or get a loan from the state, but if these aren’t valid options for you, you can always go to a bank.

But before actually doing it, you need to start by setting up a budget, ideally with a professional financial analyst, and make sure you can provide the bank with a pledge and with guarantees.

Get the right bank and loan for you

It is always a good idea to start by asking your own bank, as having already a checking account might give you favourable conditions. You should also get a bank that has been open for more than five years, as it means it can be trusted, and that publishes financial reports and therefore has nothing to hide.

Also make sure to get some advice from other entrepreneurs, and to know whether soft loans with state support are available in case you need them. But most importantly, choose the loan program that suits you and your needs best!

Have all your documents ready

In order to get a loan from a bank, you will need several documents – a passport, a registration certificate for intellectual property, a record extract, a tax registration certificate, any licence, permit or collateral document you might need, a business plan and a certificate of income.

Submit it carefully

Banks expect detailed and reliable data, so you need to be careful while submitting your application. Nothing should be hidden, not even bankruptcy or existing loans, as the Bank’s Security Service will verify everything and can even blacklist you if you try to deceive them. And be careful, initial payment conditions for beginner entrepreneurs ask you to have 10 to 30% of the total loan amount, so make sure you have saved up enough money before the submission!

Set up a suitable contract

Not only do you need to read and get familiar with your loan agreement, you also need to make sure that it is in line with your financial and personal well-being and goals. To be completely safe, you should get it looked at by a lawyer who is knowledgeable about interest rate, payment programs, procedures for fines, conditions for advance payments, as well as obligations and rights for both parties.

Get the funds and start your own business!

Once you get the funds, all you are left with is starting your own business and making sure that you are fully invested in it… So get ready and let’s go!