Azerbaijani banks should thoroughly analyze potential of entrepreneurs - expert

Business Materials 13 November 2019 09:30 (UTC +04:00)
Azerbaijani banks should thoroughly analyze potential of entrepreneurs - expert

BAKU, Azerbaijan, Nov. 13

By Eldar Janashvili - Trend:

Azerbaijani banks should provide business loans in those areas that really have the potential so that in the next years there would be advantages mentioned in the business plan, Azerbaijani expert in the banking sector Javid Abbasov told Trend.

Abbasov said that banks should thoroughly analyze the potential of the side that requests a loan.

Unfortunately, in the absence of confidence in new areas of business in Azerbaijan, the country is dominated by traditional business plans to which most loans are directed, the expert noted.

Recently, fast food has been increasingly developing in Azerbaijan, at the same time, the hotel, restaurant and catering (HORECA) sector and a distribution channel for goods with direct consumption of products at the point of sale, Abbasov added.

“This is related to the development of tourism, and we can say that the young generation of entrepreneurs is already considering this trend as a source of income,” said the expert.

“In the business plan, specific steps for marketing, business development and sales plans should be outlined so that the entrepreneur can systematically see the steps that will be taken in the coming years and correctly analyze the situation,” Abbasov noted. “In the absence of these data, the business plan cannot be analyzed. Marketing and sales are actions that support each other. Without determining marketing activity, it is impossible to justify in detail on what grounds the number of sales in a business plan is indicated.”

The expert added that in most business plans compiled in Azerbaijan, there are no forecasts at all. Moreover, one of the most frequently used tactics in the global market is a minimum of three forecasts, among which even the minimum forecast should justify itself well enough to receive a business loan by the addressee, Abbasov said.

Entrepreneurs should be in close contact, in communication with banks, the expert noted, adding that in this case, banks will better understand entrepreneurs and support them.