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Kazakhstani entrepreneurs received 5 billion without collateral from private investors

How was it? In 2023, Kazakhstani entrepreneurs attracted more than 5 billion tenge for the development of their business from private investors without collateral in 48 hours.

They did it quite easily and simply.

How did they do it? Perhaps the most common question that worries entrepreneurs is: "Where can I get funds for business development?"

It is often very difficult to get a loan for business development, even at a high interest rate. Banks require collateral, which small and medium-sized businesses may not have.

It turns out to be a vicious circle, you are an entrepreneur and already have some assets and turnover, but in order to become attractive to a bank, you need to grow up.

However, with the advent of crowdlanding platforms, the situation began to change for the better. 

The opportunity for “Non-bank” financing has opened up for entrepreneurs. They were able to replenish their turnover, purchase raw materials and settle accounts with suppliers using direct financing from private investors.

One example of such platforms is the InvestRoom company, which helped entrepreneurs raise 5 billion tenge without collateral.

Currently, there are four licensed platforms on the market that can issue loans to businesses: InvestRoom, Ikapitalist, GoCrawd and Opportunity, all of them are residents of AstanaHub and the International Financial Center.

Usually, through a crowdlanding platform, you can raise money to replenish the company's working capital, fulfill a contract, participate in a tender and purchase goods. All these are short-term loans, not exceeding 50-100 million tenge, with a term of no more than 1 year.

The rates are higher than in banks and range on average from 28 to 48% per annum. But at the same time, they receive financing very quickly, on average, it takes from 48 to 72 hours to complete the registration, and all this without collateral. But of course, it all depends on the product, the period on the market, the turnover of the company and the credit history.

In addition, the borrower pays the site a commission for services. In the Investroom, it is now equal to 4.5%.

Over the past year, Investroom has financed 125 entrepreneurs on its platform for more than 5 billion tenge without collateral in 48 hours. 

All entrepreneurs expanded their product lines, increased production volumes, hired new specialists, purchased machine tools and scaled up to new markets.

The scheme of the site is simple and transparent: the platform checks the borrower's company, evaluates its financial condition, credit burden, and solvency. Everything is done online, and the application is considered within 1-3 business days.

Each investment platform has almost the same criteria for selecting borrowers. Sole proprietors and LLP who have been working for at least 12 months and have a good credit history can get a loan. The financial indicators of the business are necessarily checked: revenue and profit. Existing loans and the level of debt burden are also always taken into account.

It is also very important what the funds received will be used for. The estimated costs must necessarily correspond to the business strategy and have a reasonable justification. For example, you can use funds to scale your business, purchase equipment, or increase turnover.

The process includes several steps:

  1. Choose an InvestRoom, Ikapitalist, GoCrawd or Opportunity site – compare interest and conditions, think about the loan amount.
  2. Register on the platform and fill in the data in your personal account.
  3. Fill out the application and wait for approval.
  4. If approved, you will receive the amount to your account.

At all these stages, the company is led by a personal manager who will answer all questions and help you figure out the rules of the site.

If the money is not returned on time, then the penalties prescribed in the contract are applied to the borrower – these may be fines, penalties, penalties. If the debt is not repaid voluntarily, then creditors have the right to demand a refund through the court.

In any case, default is not beneficial to anyone, so the platform carefully checks borrowers to reduce its risks.

Earlier, Murat Ospanov told the principles of operation of the Investroom on a visit to Batyr Elemes

How to invest in a business from 50,000 tenge? Win a trip to Shymkent from Investroom Batyrkhan Elemes

Elizaveta Pisareva tells the Bluescreen editor which entrepreneurs Investroom works with. 

To apply for funding

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