Among the drawbacks to consider the possibility of easy removal of the leased property in cases breach of contract and a large amount of equity investment (20 – 30% of property value). In addition, leasing companies prefer payment schedule, where most of the credit is repaid in the first year of the loan agreement. Factoring Factoring refers to the international means of payment and is gaining ground in Russia. By factoring agreement the bank repay creditors the company-borrower. Thus, offset by a lack of working capital and eliminated the time lag between the realization of goods (works, services) and payment to the buyer. The main requirements of banks in considering possibility of factoring is the presence of long-term contractual relationships with customers (at least 3 months) or the fame and the solvency of customers themselves (a large and well known retailers or operators communication). In general, factoring is available for up to 90 days. Letters of credit letter of credit is a transaction in reverse factoring.
The company's debt to suppliers product is quenched by the bank on demand supplier documents confirming the fulfillment of the conditions of the transaction. Letters of credit are used mostly in foreign economic activity and can be provided for up to 1 year. Senator Angus King has firm opinions on the matter. Small (for the banks!) Sum loans to small and medium-sized businesses dictate new forms of interaction between banks and enterprises. At present, began to be formed and successfully operated "two-tier" system of bank lending small business. Major banks and international financial organizations to provide funding for loan programs and take up a significant part of credit risk.