State-Guaranteed Business Loans
- State-Guaranteed Business Loans.
- What public funds exist to assist businesses?
- How to take a business loan under a state guarantee?
- Why you should contact “Shmuel Brodetski Rohe Heshbon”
One of the main difficulties that a first-time entrepreneur faces before starting a business is the lack of the necessary start-up capital. Private banks are very reluctant to issue loans to new customers to open a business without any financial guarantees. Fortunately, it is possible to solve this problem in Israel. So, there are several funds providing loans for business under the state guarantee. With their help you can obtain the funds necessary for the establishment or development of the enterprise under very favorable conditions and without a significant collateral.
The company “Shmuel Brodetski Rohe Heshbon” helps small businesses and large companies with the formalization and filing of all necessary documents for obtaining loans under state guarantees. Turning to us, you minimize the risk of failure and significantly reduce the time and effort required to collect and file all the papers.
- The Fund for Support of Small and Medium Business under the Ministry of Economy. This organization allows an entrepreneur to get an amount of up to 500,000 shekels (with a turnover of up to 10 million) or up to 750,000 shekels (with a turnover of up to 22 million) at 3% per annum, which is much more advantageous than the usual terms in commercial banks. At the same time, the fund provides a guarantee for up to 75% of the amount for an already successfully operating business, or up to 90% for a new enterprise (up to 30000 shekels). The term of the preferential loan is up to 5 years. In the first several months, there is an opportunity to pay interest only. To obtain a loan with the support of the Small and Medium Business Development Fund, it is necessary to collect a whole package of documents and fill out a detailed questionnaire, as well as pay the state fee. After that, you will be invited to a special meeting/interview to clarify all the details and make a final decision.
- OLIM (or Fund in support of entrepreneurs from new immigrants). Providing a loan for up to 6 years at 2% per annum, up to $ 100,000. The program can take in new immigrants (up to 10 years after the relocation), residents of Israel who have returned to the country (up to 2 years from the date of return), etc. To obtain guarantees from the fund, it is necessary to fulfill a number of conditions: to prove the qualification of an entrepreneur, to prepare a thorough business plan, the firm in the future should be the main source of the applicant’s income, etc.
- Fund for exporters. Provides state guarantees for loans to enterprises that are oriented to work in foreign markets (more than 5% of sales should be exported). The loan is granted for up to 5 years, for up to $ 100,000 (for a business with a turnover of up to $ 500,000) and up to $ 1 million for companies with turnover in excess of $ 500,000. To obtain a loan, it is necessary to justify its necessity, provide a clearly worked out development plan and justify interest in products under market conditions.
There are also a number of smaller funds that provide credit for starting a business and its development for small and medium-sized enterprises – the Medium Business Fund, the Small Business Support Fund in the south of Israel, etc. The conditions for obtaining a loan in them are similar to the foregoing.
As can be seen from the conditions for obtaining loans, despite rather favorable conditions the requirements to the applicants are a good many. First of all, it is necessary to rationally justify the need for a loan, and also to predict its payback by scheduling step by step the model of the business to be created (or developing the already existing business). In most cases, this requires a detailed business plan. It is also important to collect the most complete package of documents, which will show the representatives of the fund your solvency as an entrepreneur and the rationality of the state’s investment in your company.
Unfortunately, very few applicants can independently cope with such tasks. So, according to statistics only about 40% of all requested loans under state guarantees are approved. To get into the cherished number of borrowers, we recommend that you ask for help from “Shmuel Brodetski Rohe Heshbon”when applying for a loan under the state guarantees. We will comprehensively evaluate your idea (or already existing enterprise) to help you create a competent business plan that meets all world standards and maximize the benefits of your business, collect the full package of documents and prepare you for an interview with fund specialists. As a result, you will be able to get a loan under state guarantees on the most favorable terms and start your own business.
- Savings. How much is the hour of your time worth? How many hours will it take to collect all the necessary documents? Count these numbers, and you yourself will be surprised how big the sum will be. And this not taking into account the fact that when you first apply for a loan for small businesses under state guarantees, you will most likely get a refusal. And you will have to spend as much time and effort to re-apply. In addition, no one will give you back the money spent on processing documents, payment of fees, photocopies, etc. If you take into account all these calculations, the cost of our services seems simply trifling.
- Professionalism. Thanks to the rich experience of working with various funds, we know exactly how to properly formulate an application in order to receive a positive response. Our company will not simply transfer the package of documents already provided by you, as some unscrupulous middlemen do. Instead, we oversee all stages of collection and processing of papers, compose competent business plans and presentations and prepare you for interviews. As a result, you will receive the necessary money with minimal effort.
Do not put off your dream until tomorrow! Simply contact “Shmuel Brodetski Rohe Heshbon” and we will help you get a loan under state guarantees and bring to life the most daring business ideas.