Capital expenditure financing is a major need for companies in the small business sector. Companies in this attractive tier are prospering and, since long-term financing is scarce, will pay reasonably for what is available. Lease financing for printing, furniture making, and food processing equipment is another popular alternative for small businesses, particularly since it eliminates the need for collateral. The borrower is honest, transparent and eager to expand. He is the banker's dream, since you can understand his business and growth potential and finance project by project with a long-term view.
Pricing is rich and the prospect of offering ancillary products is limitless.
Some entrepreneurs star-ted with small loans five years ago and have borrowed up to four times to grow their companies. They have since become successful businessmen and prominent members of their communities. Such borrowers are found not only in Russia's major cities, but in the regions, as well.