There is no doubt that the route State-guaranteed loans It is considered the best solution for any business owner who is interested in developing their business or opening a new business, and when does a business owner turn to the channel if not when they encounter the protective wall of the banking system when they present it with the wonderful solution they have concocted in their minds. Hence, there are a multitude of solutions in the State of Israel: There are quick solutions for obtaining loans in amounts of twenty to forty thousand shekels and at killer interest rates from various financing companies, credit card companies that advertise that they will give you loans at an interest rate that is one and a half percent lower than what is offered to you at the bank, there are loans in high amounts of money of two hundred thousand shekels from financing companies that give loans against a car pledge, and here the loans are good for five years, and the interest rate is over ten percent, which is considered very high, or business loans from businessmen's funds whose greatest advantage is the speed of loan approval and the amount of loans that can reach up to a million shekels and on a very fast track that can take a few short days.
From here we will move directly to the reasons why it is worth taking state-guaranteed loans to expand a business, or to start a new business:
A known, regular and fast process
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It is possible to obtain state-guaranteed loans in relatively high amounts of money for all solutions in Israel, within a period of three to four weeks. Of course, the process must include the stage of writing a professional business plan, without which the application will not be approved, after which there is the important stage Eligibility checks for state-guaranteed loans Where a state inspector meets with you and asks the three main questions - experience in the field, examining proper financial conduct, and examining who the good business owner is.
You have passed the three criteria. Now the application goes to the selected bank for examination, and if it identifies that your application has indeed passed the state-guaranteed loans in a good manner, then it forwards a recommendation to the final committee, where the bank meets with a representative of the coordinating body and a representative of the Ministry of Finance, and you have moved forward.
Best conditions
It doesn't matter if you have chosen a business expansion path for investment purposes, working capital financing, a path that combines investments with working capital, or you are seeking to fulfill your dream and receive Loans to start a new business In Israel - you will receive the best possible conditions. There is no need to argue, everything is known and arranged, the state protects you from the banking institutions that want to make the biggest profit on you. You will receive a loan for your business or a loan for your new business for five years, the bank will not pressure you to shorten the loan term by at least a few years as it likes in the regular banking track, and if you have wanted a new business and are worried about whether the initial profit will come immediately or be delayed for several months, then don't worry: the State of Israel gives you a maximum protection of six months, import your products, open your business, the profit will come and you will start paying the loan repayments with a state guarantee.
And if we're talking about money, then the interest rate will be at least fifty percent lower than the price you would pay in the banking system, not to mention the guarantees and collateral they would demand from you after the ordeal.
Known disadvantages
So yes, the State of Israel has also invented thorns in the strawberry field of state-guaranteed loans, and it requires you to have a ten percent deposit for state-guaranteed loans to start a new business, and a twenty-five percent deposit for existing business owners who always ask why this thorn has to be there.
We will only add that there is another tiny drawback in that every licensed dealer is required to have his wife sign a personal guarantee for state-guaranteed loans, in addition to the licensed dealer. And of course, a business owner who owns a limited company can sign a personal guarantee without requiring his wife to sign the loan.
Let's summarize here that the two aforementioned disadvantages are disturbing, but very small compared to the great advantages presented.
