Businesses are constantly looking for business financing that will also be cheap for them. If you are a business owner, you surely know that the more the credit for the business, the more careful you should be about the terms of the loan. It is not easy to open a small business and maintain it in the first months of its existence; Therefore, any additional loan spread, interest discount and reduced collateral requirement may significantly help the growth and leverage of the business. Therefore, the state-guaranteed loan channel among small businesses has become a significantly preferred financing tool in relation to receiving a business loan through the banks. When the Siog fund for businesses allows a loan on much more favorable terms than any loan you will receive from the bank, the choice is very easy.
A state-guaranteed loan is provided through a fund established by the Ministry of Finance to assist medium and small businesses in dealing with the credit crunch that is so common these days. Which business can apply for a recruitment process with a state guarantee? Any business with a transaction turnover of less than NIS 100 million per year. In this way, you can get a loan with a 5-year spread and an interest rate that is not greater than prime + 3.5%, and with the presentation of 25% collateral - this is in accordance with the conditions of a state tender.
It is now clear that state-guaranteed business loans are cheaper than a commercial loan from the bank, thanks to favorable loan terms .
How can you get a loan on better terms for a business?
It's always a good idea to bargain, just as you would if you were going on a shopping spree at the local flea market - each side has a conflicting interest, and yet, you have the power to tip the balance in your favor. You are a customer, and as such, you can (and it is your duty) to negotiate assertively in order to lower the price and purchase the product (loan) at a better price (under better conditions) than the starting price.
Thus, even if in the end you chose to receive a loan from the bank, you will have to negotiate the interest rate, the repayment terms, and perhaps also the amount of collateral that you will have to present to him, because if the bank is interested in this, he will be able to grant you a loan at a lower interest rate and with a longer spread . Try to negotiate each of the clauses in the loan contract you signed with the bank. If you don't know how to bargain, well - learn to do it
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