GENÇ GİRİŞİMCİ KREDİSİ NEDİR? NASIL ALINIR? ŞARTLARI NELERDİR? (2024)

WHAT IS A YOUNG ENTREPRENEUR LOAN? HOW TO GET IT? WHAT ARE THE CONDITIONS? [2024]

What is a Young Entrepreneur Loan?

A young entrepreneur loan is a comprehensive financial solution that supports innovative projects, specially designed for Turkey's promising business people. This loan program allows dynamic entrepreneurs between the ages of 18-35 to turn their dreams into reality. It not only provides start-up capital, but also plays a critical role in the growth and expansion of existing businesses. These special loan packages offered by leading banks in Turkey aim to make it easier for young entrepreneurs to access capital, one of the biggest obstacles they face, and to turn them into active players in the economy.

While Young Entrepreneur Loan programs offer very attractive interest rates according to market conditions, they also provide entrepreneurs with unique flexibility in repayment plans. This flexibility allows newly established businesses to manage their cash flows more effectively during their critical early years. For example, seasonal repayment plans or income-based payment options can be offered for seasonal businesses. In addition, credit terms can be extended up to 5 years, taking into account the time required for young entrepreneurs to establish their businesses on solid foundations. In this way, entrepreneurs can focus on long-term strategic planning, away from short-term financial pressures.

Why Do Entrepreneurs Need Credit?

Entrepreneurs usually need significant financial resources to turn their innovative ideas into reality and sustain their businesses. This capital is vital to meet the various needs that arise during the process from the establishment phase to the growth phase of the business. Financial resources cover not only the start-up costs but also the investments required for the long-term development and competitiveness of the business. Here are the main reasons why entrepreneurs prefer to use credit:

• The first step in starting a new business usually requires financial resources. Start-up expenses such as renting office space or a virtual office, purchasing equipment, and creating an initial product stock are the most common reasons why entrepreneurs turn to credit.
• Startups need a regular cash flow to continue their activities. In addition to fixed expenses such as employee salaries, rent, and bills, marketing and advertising expenses can also be considered within this scope.
• When a business begins to show steady growth, it usually needs additional financing to support this growth. This could be in the form of expanding into a new market or region, increasing the range of products or services, or creating a larger workforce.
• Innovative startups constantly invest in developing new products and services to maintain their competitive advantage and stand out in the market. This process is usually costly and requires long-term investment.
• Businesses may apply for credit to manage liquidity crises, especially in the face of volatile market conditions and unexpected situations. Strengthening cash reserves is critical to maintaining the financial health of a business and being able to quickly adapt to sudden market changes.

In short, the purpose of entrepreneurs applying for credit is to overcome the financial difficulties they may encounter during the establishment, maintenance and growth stages of their businesses. Credits play an important role in overcoming these difficulties and ensuring that businesses continue their activities in a healthy manner.

Who is Given a Young Entrepreneur Loan?

The young entrepreneur loan is a comprehensive financial support program specially designed for young people with an entrepreneurial spirit. This loan focuses on individuals between the ages of 18-35 who have innovative ideas and are passionate about turning these ideas into reality. The main purpose of the program is to remove the financial barriers in front of future business leaders, encourage their active participation in the economy and ensure that they contribute to the country's economic growth.

This type of loan not only provides start-up capital, but also offers young entrepreneurs additional advantages such as mentoring, networking opportunities and business development support. Thus, in addition to financial support, it helps entrepreneurs take solid steps in the business world and achieve sustainable success. Young entrepreneur loans provide an opportunity for young people to transform their creative ideas into commercial success, thus contributing significantly to economic development at both individual and societal levels.

What are the Young Entrepreneur Loan Conditions?

The general conditions sought in those who will apply for the Young Entrepreneur Loan determine the target audience and basic criteria of this financial support. These conditions aim to select young people who have real entrepreneurial potential and can use this support effectively, in accordance with the purpose of the loan program. Here are the basic criteria generally sought in candidates applying for the Young Entrepreneur Loan:

• Young Entrepreneur Loans are generally aimed at individuals within a certain age range. This age range may vary from bank to bank, but individuals between the ages of 18 and 35 are generally determined as the target audience.
• Entrepreneurs who want to benefit from the loan must be citizens of the Republic of Turkey.
• Banks also evaluate the applicant's financial history when providing loans. Therefore, it is important for young entrepreneurs to have a good credit history and to have paid their previous debts on time.
• Entrepreneurs are expected to submit a detailed and realistic business plan during the loan application. This plan should include important information such as the sustainability of the business idea, financial projections and market analysis. (See How to Prepare a Business Plan? Why is it Important?)
• Some banks may also take into account the education or experience of prospective entrepreneurs in the relevant sector. This may increase confidence in the success of the project.
• Applicants must not have any legal obstacles, especially not be bankrupt or have not faced legal problems due to their commercial activities.

These conditions provide a general framework for young entrepreneurs to receive a loan, but it is important to remember that each bank may have its own special conditions and criteria. Therefore, it is important to carefully examine the conditions and opportunities offered by the relevant bank before applying for a loan.

What are the Types of Young Entrepreneur Loans?

A young entrepreneur loan has different terms and conditions depending on the purpose of the loan. The most well-known of these is the capital loan. These types of loans are generally used to provide the capital required in the first stage of a business idea, i.e. the establishment stage of the business. Venture capital loans are an important resource for young entrepreneurs to put their business plans into practice, develop their first products or services, and initiate marketing activities.

Operational loans are provided to finance the daily operations of the business. For example, they can be used for ongoing financing needs such as the purchase of raw materials, staff salaries, or daily operating expenses. Operational loans are generally ideal for short-term financing needs.

Equipment financing loans are loans that young entrepreneurs can use to purchase machinery, equipment or technology needed to run their business. Equipment financing loans are usually tailored to the cost of the equipment to be purchased and the equipment is usually accepted as collateral.

Loans for the private sector are designed for specific sectors or niche markets. For example, the loans offered by Ziraat Bank for young farmers are specially developed for young entrepreneurs who want to operate in the agricultural sector. These types of loans are designed to help young farmers expand their agricultural activities and make them more efficient.

Which Banks Provide Young Entrepreneur Loans?

Young entrepreneur loans are offered by many banks to provide financial support to young entrepreneurs who want to implement their innovative business ideas. This type of loan is specially designed to encourage young people's active participation in the economy and to ensure that they contribute to the country's economic growth. The main banks that provide young entrepreneur loans in Turkey include:

• Ziraat Bank: As one of Turkey's most established banks, it offers special loan packages and support programs for young entrepreneurs.
• Halkbank: Known for its various loan options for SMEs and young entrepreneurs, Halkbank draws attention with its affordable interest rates and flexible repayment plans.
• İş Bank: Known for its wide branch network and digital banking services, İş Bank offers special loan opportunities and consultancy services for young entrepreneurs.
• TEB: The Turkish Economy Bank (TEB) stands out with its special loan packages and business development support for young entrepreneurs.

In addition to these banks, other private and public banks also offer various credit and support programs for young entrepreneurs. Young entrepreneurs should examine the opportunities offered by these banks in detail to determine the most suitable credit option for their needs and business plans.

What is the Ziraat Bank Young Entrepreneur Support Package?

Ziraat Bank's Young Entrepreneur Support Package offers a comprehensive financial solution that provides significant advantages to young entrepreneurs who want to start a new business in business life. This special package is designed to help entrepreneurs overcome the financial difficulties they face when they step into business life. Within the scope of the package, all EFT and money transfer transactions are carried out free of charge, so entrepreneurs can manage their cash flow more effectively. In addition, no expenses are charged for the first six months in the check package offered by the bank, which facilitates cash management for newly established businesses. Special commission rates applied for letters of guarantee encourage entrepreneurs to participate in tenders and take part in large projects. In addition to these advantages, special consultancy services are also provided to entrepreneurs within the package, and support is provided in the development of business plans and the creation of financial strategies. To obtain detailed information about the Young Entrepreneur Support Package, learn the application conditions and benefit from this comprehensive support, you can apply to Ziraat Bank branches or use the bank's digital channels.

How to Get a Young Entrepreneur Loan?

The basic steps to follow to apply for a Young Entrepreneur Loan and receive this financial support are explained in detail below. This process is an important roadmap that will help entrepreneurs realize their dreams:

1. The first step is to examine in detail the terms and conditions of the Young Entrepreneur Loan package offered by the relevant bank. This information can usually be obtained from the bank's official website or directly from their branches.
2. The documents required for the loan application are usually an identity document, a residence document, a business plan, educational documents, and documents related to the business, if any. A military status document may also be required for male candidates.
3. Banks expect young entrepreneurs to submit a sustainable and financially viable business plan. This plan should include important details such as how the business will be run, expected income and expenses, and competitor analysis.
4. After the documents and business plan are prepared, candidates must go to the branch of the bank they want to get the loan from, fill out a loan application form, and meet with a credit specialist. During this process, a detailed discussion is held regarding the business plan and financial expectations.
5. If the loan is approved as a result of the evaluation made by the bank, a loan agreement is signed that includes the terms of use of the loan and the payment plan.
6. After the agreement is signed, the loan amount is transferred to the bank account specified by the entrepreneur and the entrepreneur begins to use the loan in line with the determined purpose.

These processes may vary slightly from bank to bank, so it is best to contact the bank you are considering to learn about their current procedures.

How to Apply for a Young Entrepreneur Loan?

People who meet the requirements set by banks can apply for a young entrepreneur loan and benefit from special financing opportunities for their businesses. However, you need to follow certain steps when applying. The steps for applying for a young entrepreneur loan are as follows:

1. First, you should prepare a detailed program for the business you plan to do. In this plan, you should specify how your business will operate, who your target customer base consists of, the competition situation and financial details.
2. After you have prepared your business plan and determined which bank you will apply to, you can start the process.
3. Each bank manages the application process differently. While you can apply to some banks online, you need to go to a branch in some. Therefore, you can manage the process better by getting information from the website of the bank you plan to apply to.

After you have collected all the necessary documents, you can apply to banks for a young entrepreneur loan. Banks will give you a positive or negative response after determining whether you meet the specified conditions.

What are the Required Documents for a Young Entrepreneur Loan?

When applying for a young entrepreneur loan, you need some documents. Although the documents to be requested vary from bank to bank, generally every bank will ask for the following documents from you:

• Identity Document:** A driver's license is not accepted as an identity document. Instead, you can apply with a Turkish Republic identity card or passport.
• Address Document: You must confirm your address. For this, you can show a bill issued within the last three months showing your address. You can also register your address with a residence document if you wish. Since the person making the application must reside in Turkey, an address document is a must.
• Business Plan: Before giving a loan, banks may want to see your business plan and the system you have established. For this, you should prepare a report showing your field of activity or marketing strategies. Since banks take on a certain risk when giving a loan, they want to see your business plan and then analyze whether you can repay the loan.
• Business License: You must show that your business has received the necessary permits to operate. For this, you should also take the permits and licenses to the bank. This document shows that your business is ready to operate.
• Financial Documents: You should also show the income statement, cash flow statement or balance sheet of your business for the last three years.
• Tax Returns: Natural persons must bring their tax returns for the last three years during the application. Legal entities are expected to bring the original or a photocopy of their corporate tax return.
• Bank Account Information: The applicant who meets the required criteria must prepare the account statements of their bank accounts for the last three months.
• Capital Declaration: You must show the amount and source of capital that shows why you need the loan.
• Collateral Document: Sometimes banks may ask for a collateral document showing that the young applicant can make the payment. When it comes to young entrepreneur loans, you must present real estate, vehicles or other assets as collateral.
• No Debt Document: In order to apply for a loan, you must have no SSI debt. Therefore, you must also submit a document showing that you have no debt during the application.

After completing the above documents, you can apply to banks. However, you should carefully review the websites of the banks you will apply to in case they request an additional document.

Which Sectors are Young Entrepreneurs Loans Given to?

There is no sector restriction for young entrepreneur loans. People in every sector who meet the relevant conditions can qualify for young entrepreneur loans. However, if you want to get an idea of ​​which sectors can receive loans, you can review the following items:

• E-Commerce: You can benefit from a young entrepreneur loan to open an online store, do digital marketing work or dropshipping.
• Pharmacy: If you have just graduated from pharmacy, you can apply to some banks for a young entrepreneur loan to open a pharmacy.
• Law office: If you have just graduated from law school and want to open your own law office, you can apply.
• Practice: New dentistry or gynecology graduates can apply to open their own clinic.
• Food and beverage: People who will provide restaurants, cafes or catering services can also benefit from a young entrepreneur loan.
• Fashion and textile: If you are interested in clothing stores, accessory sales or textile production, you can get a young entrepreneur loan.
• Art and entertainment: Those who are involved in organization and event management, those who want to open a gallery or those who form theater groups can apply for a young entrepreneur loan.

In addition to the sectors above, young entrepreneur loans can also be provided for sectors such as tourism/accommodation, agriculture/animal husbandry, import/export or transportation and logistics. When providing young entrepreneur loans, your business plan is taken into consideration rather than the sector. If you have determined the right strategies, if the business you will do has potential and if you can convey this correctly, banks may consider providing you with a young entrepreneur loan. Therefore, after creating your business plan correctly and effectively, you can increase your chances of receiving support by applying for a young entrepreneur loan.

How Much is a Young Entrepreneur Loan?

The young entrepreneur loan amount may vary according to each bank's own policies and risk assessments. Therefore, before applying for a loan, examining the official websites of various banks in detail will allow you to obtain comprehensive information about the loan amounts offered to you. Not only the loan amounts, but also the repayment terms, maturity periods and interest rates offered by banks may differ from each other. Therefore, it is important to evaluate all the conditions offered by banks comparatively in order to determine the most suitable loan option for you. Some banks may offer higher loan amounts, while others may offer lower interest rates or more flexible repayment plans. Therefore, doing your research to find the loan option that best fits your business plan and financial needs is critical to your long-term business success.

  Ifasturk: Reliable Financial Solution Partner for Young Entrepreneurs

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• You can compare young entrepreneur loan options from various banks on a single platform,
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Choose Ifasturk to overcome financial obstacles in your entrepreneurial journey and make your dreams of growing your business come true!

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Mesut SENEL | Ifasturk CEO

Certified Public Accountant