How the Bank Decides During the SME Loan Approval Process


Getting approval for SME loan; means that small and medium business owners use credit to support their businesses. Business owners who are entitled to use SME credits provide the necessary support for their businesses.

The commercial loan type can only be obtained on behalf of businesses, and since they are issued in different regulations than individual loans, they have different statuses. Who is given the SME loan of those who want to use credit? The answer to the question is given to small and medium enterprises.

What are the Types of Loans for SMEs?


SME support loan is given in two ways in 2019. Credits grouped under two subheadings;

  • Cash SME loan: Tradesmen loans in equal installments are used as loan types used by business owners to meet their cash needs in the short term. SME loan, which is frequently used by small businesses, is a type of business loan that can adjust the payment plan according to its budget and is used by certain tradesmen whose earnings are used.
  • Non-cash SME loan: It is the type of loan used for big dealership applications in case of large companies participating in the tender, and for purchasing goods. Non-cash SME loans can be explained briefly in the form of the bank’s commitment (guarantee provided by the Bank) on behalf of the applicants to fulfill their obligations by doing these works.

How to Apply for SME Support Loan?

Business owners who want to apply for SME Loan give information about why they need to use loans by interviewing the banks’ credit specialists.

During the mutual meeting held by the customer and expert personnel, the type of SME loan and the amount of credit to be used and the maturity period are decided. Following the decision process, SME officials share information about the reimbursement conditions and how and where to pay.

The credit evaluation process begins behind the information shared with the bank. In case of positive results for SME loan applications, a payment plan is prepared and signatures are signed. Business owners who are entitled to use the loan can obtain their credit cards after approvals and signatures.

What are the Requirements for SME Support Loan Applications?


The SME loan conditions that banks want from the applicants differ between banks, but they are the same as the general loan terms. Support loan that can be used by the owners of the business is not used to open a new business.

In order to use the tradesmen loan offered by banks, it is necessary to have a business in operation. Tradesmen loans are given to meet the needs of small or medium level trades in their workplaces or to change their workplaces. The most important condition required by the business owners who apply is to have a business owner.

How Does the Process of SME Loan Approval Progress?


In the SME loan approval process, firstly, business data is prioritized. At least 1-year tax plate of the workplace and additional information that the operator has made a profit should be shown on the plate. Loans used in commercial loans are in short term.

Applicants who wish to withdraw long-term loans, rather than loans held in the short term against the risk factor, should show collateral. It is very effective to show a guarantee of the fixtures, vehicles and real estates belonging to the company in the loan approval process.

Another factor affecting the SME loan approval process is the bank credit rating of the business owner. Approval is required for all partners required for loan applications.

For this reason, it examines the registry status of all the partners belonging to the enterprise applied by the bank to which the loan application is made. Even if any of the partners have a low credit rating, they can request collateral by not approving the loan request.

What are the Documents Requested in SME Loan Application?

What are the Documents Requested in SME Loan Application?

Banks, which give pre-approved loans after the evaluations, request some documents from the business owners applying for SME Loans. The documents requested by the bank are as follows;

  • Documents with financial data
  • Workplace balance sheet documents
  • Income documents of applicants
  • Residence documents of applicants
  • Registration sample document showing that the Trade Registry Gazette is registered

How to Make SME Credit Calculations?


Business owners who want to apply for SME loans should primarily review the most appropriate commercial loan calculation, comparison, and research processes.

By investigating the answers to the questions such as how much the loan amount should be withdrawn and in which process the repayments should be, using the loans in the payment processes that are suitable for their own budget ensures that their businesses do not suffer.

The fact that the operator, who has the power to pay in 24 months, tries to pay the loan in 12 months may cause negative results.

It is in favor of business owners to seek credit by researching commercial loan interest rate calculations and the most appropriate commercial loan calculations and by conducting a good feasibility study.

What Happens If SME Credit Is Not Paid?

What Happens If SME Credit Is Not Paid?

In requests for SME loans issued by banks, applicants are generally required to show collateral. The decision of the guarantees to be shown is determined by the purpose and type of the loan. Guarantees to be shown;

  • Property,
  • Any goods or fixtures,
  • It can be check or promissory note.

In cases with credit card payments, it is decided by the first meeting with SME officials. A new payment plan can be prepared for loan holders who do not make loan repayments, or the legal process for the guarantees shown begins.

People who have problems with loan repayments generally agree with the authorized bank and agree on a common point in drawing up the payment plan.

It is difficult to find interest-free loans when using SME loans. You can get interest-free loans with the Ancan government support SME loan.

You can make zero interest-free loan applications with the campaigns made on GFIC. They are not always loans. You can use the SME Loan Calculator on our site to calculate the SME loan.

We advise you to read our previous article, ” Why the application for a consumer loan is not approved.” You can browse the topics that may be of interest in our Consumer Loans category.

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