One of the main disadvantages of small businesses is the lack of money and not only at the beginning. At least half of the 90% of those businesses that have been closed for 1-2 years could survive and develop if they had enough money.
The situation is further aggravated by the fact that the businessman is at the start. ALWAYS makes mistakes that lead to losses and losses, and above all financial ones.
In fact, there are few options.
1. personal funds (I won't be able to understand everything about them)
2. Loan
3. Targeted subsidy.
It would seem that a loan at reasonable interest rates is a great way out. But...If we are doing very well with taxes and inspections. It's very, very bad with loans.
Let's just say you won't get it at the start. That's exactly the credit for the business you will not get. It is much more likely that you, a non-working person, will be given a consumer loan as a private person. Then a loan for business development. Yes, by the way, and the interest they have little difference.
The bank will require such strict guarantees of repayment that you will not sign up for them yourself. (I remember I was wanted as collateral, bonds or a metal account. When I ask why I need them, if I can sell them and get money without interest, I haven't received an answer.)
Even if you are registered, the loan rate will be very small 23-35%, which is very difficult for the beginning of the case.
And most importantly, they do not give a delay. Then take a year or two to develop, and then you can not pay.
Why so?
There are several reasons.
Entrepreneurs are ground, and if the business goes bankrupt, they are extremely reluctant to part with their own. Collectors have very little effect on them. Yes, and to withdraw from the impact of assets can.
Most businesses go bankrupt young more often than the old ones. But they go bankrupt. But the assets in small business are always a problem. They are either not there, or they are hidden for as long as they can. Therefore, it is very difficult to take from it.
There are a lot of crooks. The whole purpose of this is to get money for the purchased "laying". Cash-out, and disappear in the fog.
Conclusion:
Loans for starting a small business are not actually given. If they do, they give it on very bonded terms. Therefore, it is better to think that they do not exist. If you still need it, it will be an ordinary consumer loan at a high rate.
Subsidies.
No matter what they say, the government takes care of small businesses and constantly launches various aid programs. One of which is subsidies.
A huge plus of subsidies is that if they have been given and it hasn't been done, no one will demand a refund. And it can reach 500K and 5M in Moscow (in Ryazan there were programs up to 1M). The minus of the subsidy is that you can only spend it on certain purposes, and for nothing else. But they don't look a gift horse in the teeth.
But you understand a lot of people who want to do it - there is not enough money. In general, you have to try very hard to get a subsidy. Meet the restrictions, give a lot of paperwork, and still, you may not get it. Because money is not enough.
By the way, I do not recommend alchemizing with subsidies, they are very well watched. And for misuse, you can get a criminal without problems. And the more so as not to do it for a newcomer in the business. The probability of getting caught is close to 100%.
Conclusion:
Subsidies are good, but they are few and difficult to obtain. Unlike consumer loans. If there is enough money at the start, first look for a subsidy program, and only then think about the loan. The risks at the start are very high, it's easy to burn out. To be a proper bank after that... It is up to you to decide.