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Where to get finance for small businesses

Where to get finance for small businesses Where to get finance for small businesses
29 October

Every entrepreneur on the path of his development asked himself this question at least once. However, not everyone finds a suitable solution, because of which the business falls into stagnation or is completely closed. We decided to analyze the actions of those who have already found a solution to this issue. We have recorded and structured their experience for those who are just about to, so as not to step on the same rake.

Input data

Most entrepreneurs follow the same path - they try to get money out of circulation, ask friends, go to the bank for a loan, consider leasing. We decided to describe this path and compare all the options. Let's take a specific business as an example. All names are fictitious, coincidences are random.

Small business scaling example

FOP "Bouquet" is a floristry studio in Odessa, which opened 9 months ago. It is located in a convenient location on the street. Richelievskaya, and things went better than the founder Igor had expected. Six months later, Igor decided to scale up the business and open flower delivery around the city. To do this, he needs to buy a Nissan Leaf electric car worth 15,000 USD.

Finding funding sources

Option 1. Working capital of the company

First of all, Igor took a calculator and went into the accounting department to calculate how and how much he could get out of the company's turnover. In the accounting department, everything was not as smooth as Igor thought, and in order to understand everything and calculate different options, it took him a lot of time. After a couple of days, he realized that he could pull out only part of the money, not the entire amount, and at the same time he risked a lot, because he had an open rear, and if there were unforeseen expenses, he would not have a plan "B".

Option 2. Borrow from friends

The second most affordable way is to borrow from friends. After several refusals, the two comrades agreed to meet. Both were ready to help, one 30% and the other 20% of the required amount. At the same time, the agreements with them were different. The first had to return the amount within 3 months, and he was ready to invest at 10%, and the second was ready to give only for a month, but without interest. Having considered both proposals, Igor decided to leave these options as a last resort and still try his luck at the bank.

Option 3. Bank credit

Igor decided to choose the TOP-5 banks that offer only unsecured loan options, because he did not have property on collateral. On collecting and sending documents, he spent about 4 days of close work with an accountant. And a few working days later Igor received refusals from all banks.

There were two apparent reasons:

1. Imperfect reporting of the company (Igor fired a remote accountant).

2. Too young company.

The conclusion was: it is important for banks that the company has a positive financial dynamics over the past 12 months. If everything is not perfect for you, then you will either get a refusal, or you will need collateral, or a large percentage.

Desperate, Igor went to the Internet for justice. "Is it really impossible for small business in Ukraine to develop?" In the vastness of the network, he found another option - leasing of electric vehicles for business from Eco Leasing.

"If there is even one chance out of 100, you should use it!" - thought Igor and went to find out the conditions and compare the loan with leasing.

Option 4. Car leasing for business

If in the case of a loan everything is more or less clear, then not everyone knows about leasing. Initially, leasing is a form of lease, but more advanced and optimized for business purposes:

  • fast: the final decision on financing can be made in 24 hours;
  • the likelihood of the application being approved is higher than in the bank: the requirements for the lessee for leasing are less stringent;
  • VAT refund for legal entities;
  • flexible conditions for calculating the payment schedule and the ability to adjust the schedule during the term of the agreement;
  • financing terms for leasing are longer than loan terms;
  • property purchased on lease cannot be seized;
  • lease payments include expenses for payment of registration fees and contributions to the Pension Fund, full CASCO and OSAGO insurance for the entire lease term;
  • you can lease a used car;
  • in case of leasing, it is possible to obtain a discount from the supplier;
  • highly qualified specialists can easily solve various organizational issues of a leasing transaction.


With the purchase of a car for delivery, Igor's business began to generate more income! Together with Eco Leasing, he found a fast and profitable source of financing at the lowest initial cost. We are for small and medium business in Ukraine to develop!