Social activist Tatyana Mineeva — how to solve the problems of crediting in Russia
Photo: personal website of Tatiana Mineeva/tatianamine.Russia
The events of recent weeks in the international oil market clearly shows steady growth of prices for hydrocarbons. The largest oil producers agreed to reduce production at nearly 2 million barrels per day.
For our economy this means strengthening of the national currency, which however, could once again be reduced in the event of a collapse in oil prices from external influences.
For business this positive trend means an infusion of money into the economy. First of all, in the banking system. In the past year domestic banks have received significant support from the Central Bank this year, according to some. it is expected similar support in the amount of several trillion. Until that happens, banks lend to the business (hereinafter we are talking about small and medium business) reluctantly, preferring to hold financial assets in the Bank and earn profits in this way.
2016 has become a kind of antiracismnet over the past five years. Banks issued loans by 2.75 trillion rubles, which is almost two times less than in 2015.
Nevertheless, the problems of lending to entrepreneurs bilateral. And due to the imperfection of the system, on the one hand, and with a complete lack of information about the credit product and the relevant processes on the other.
Most often, the businessman attempting to take a loan from your Bank is rejected. By “your” we mean the Bank of the “top 30”. This is also the trend of recent years. Last year, small banks for the first time surpassed large in the total loan portfolio for small and medium businesses and 56% against 44%. Having been refused in the Bank, the entrepreneur goes to a large state, where the review process can last up to six months and eventually end in the same failure. This reasoning is reinforced by the statistics of the factoring transactions: the share of SMEs (small and medium business) in such transactions in 2015 amounted to little more than 20%.
Another common problem in lending is the lack of information among entrepreneurs about the financial institutions whose programmes are aimed at supporting their activities. Businessman somewhere hears about the program to support SMEs, refers to “their” Bank, but is refused for the banal reason — the lack of such knowledge among professionals of the Bank. Although in reality such programs and funds, a huge amount, and they really work. For example, only one development Corporation small and medium enterprises has more than 50 billion of that money is directed to guarantee loans for SMEs. Support request can be submitted via the Internet, and if it is approved, a businessman will get a lower rate on the loan.
Another difficulty is the volume of the requested documents and information from banks, funds or other credit institutions. This volume is only a preliminary assessment can be daunting work to prepare. Standard list of documents for the loan usually consists of 51 positions, of which it is necessary to provide in the form of notarized copies. The entrepreneur prepares documents, pays the notary service and… gets rejected. Although the decision on that in the current situation, the loan can not be given enough scans multiple documents sent via e-mail. In addition, this process can take several weeks and received a negative result sends businessman at the next circle with a different credit institution.
And finally, perhaps the most delicate moment — many entrepreneurs can’t understand why the banks require the assessment of projects for funding.
For example, initiated the construction of the facility (mini-hotel) cost 30 million rubles, while the land issue is not settled — agricultural land. In the process of building material prices increased, which led to increased costs to 40 million roubles. In parallel there were unforeseen costs in other areas. Thus, the project invested 25 million rubles, including unofficial expenses of 8 million roubles, 10 million roubles taken in Bank the usual consumer credit with all the ensuing consequences. Businessman goes to the Bank, where required own participation of at least 30%. The Bank to determine their participation takes the confirmed part of 7 million rubles and divided into the total cost of the project is 40 million rubles, the total comes to 17.5%, which is less than the minimum requirements of the Bank. Funding denied.
The entrepreneur is at high interest rates from third parties, creating more private property, shall Deposit funds in the authorized capital, but the Bank again denies — agricultural land are not liquid security. He’s still invested in the construction, puts the earth in the correct status, does the Bank requirements for project preparation. The hotel is ready, but the Bank refuses to Finance the construction, because the money really will go on repayment of loans, which is contrary to the permitted intended use. As a result, the object is constructed, but unprofitable, since interest on loans is extremely high, it is necessary to constantly look for refinancing. The cost of construction due to delays and accumulated interest has increased from 40 million to 55 million rubles, the project was launched, but the payback period is lost over the horizon.
The solution to all these problems lies in active communication of business and government. In recent years created many sites and institutions where many conflicts are resolved. There are very important active civil position of small and medium-sized businesses.
Most importantly, it must be remembered that the state is primarily people. And many of these state people in charge of the economic bloc, came there out of business.
The author is Vice-President of “Business Russia”, candidate of economic Sciences
The opinion of the author may not coincide with the position of the editorial Board