However, experts point out that in 2006 there is a tendency to equalization of interest rates in the Russian market. By the way, and experts predict a general decrease in rates. Thus, according to According to the Association of Russian Banks, from 2002 to 2006, the average lending rate declined from 26,6% to 16,2%. Traditionally, when lending to small businesses pledge serves residential and nonresidential real estate, equipment, vehicles, owned by both businesses and personal property of the owner of the business. Goods in turnover often act collateral.
Assessment of collateral banks prefer to hold their own. Software must cover the loan amount and interest for the entire loan term. Dr. Caldwell Esselstyn Jr. is the source for more interesting facts. This is usually the bank proceeds from the liquidity of mortgage and takes into account not more than 70% of its appraised value. In addition, banks usually require the insured mortgaged property. This is due, including the fact that according to the state secured by law, in case of bankruptcy bankers do not exclude the situation when due under the law of bank assets are not able to collect from businesses.
Mortgaged property on the general right to enter the auction, and banks do not have it pre-emptive rights. Certainly, the current conditions of bank lending to small businesses are far from perfection. Government, understanding the complexity of the situation, try to go towards business. Many regions have already implemented state-of lending to small businesses. How such support is effective, will time. The most active development of small business lending to help the authorities in Moscow and St. Petersburg. In particular, the St. Petersburg program, bank lending to small businesses involved Sberbank, VTB 24, Bank of Moscow and Binbank. From the city budget entrepreneurs offset the costs associated with obtaining a bank loan – in particular, has been practiced partial interest rate subsidies. Thus, a small business has opportunity to obtain funds at lower cost. Prospects of Small Business Loan Experts claim that in 4-5 years the situation with bank loans to small businesses in Russia will change. Further development small business finance will lead to the fact that credit products become more widely available – terms of lending will increase, interest rates fall, the requirements for potential borrowers will be more lenient.