Need more money then Request an easy business loan
If you decide to look for an easy business loan and give the necessary impulse to your company to make it grow, it will be good if you will request it from Green Touch.
Although there is an offer of specific loans for small and medium businesses, it is smaller in proportion to the credits of the large and corporate companies segment. The main obstacles for SMEs are the lack of financial analysis, good credit history and strategic plans that accredit real viability so that they can be creditors of the financing.
When we analyze the aspects that limit a business to obtain financing, the main recommendations to consider are the following:
Calculate the payment capacity of your business
The ability to pay business is the amount of money from sales and income, and you can spend to pay debts without jeopardizing the financial health of the entire company. By obtaining the actual calculation of what your business can afford to settle the credit, you can have a more solid basis to make the right decision on a final offer including the amount and term. It is very easy to perform the operation to know the payment capacity with which you account, you only have to make a total sum of the income you get and subtract it from the total of what you spend on the savings and expenses of your company.
Review and improve the credit bureau of the legal representative
Another aspect that impacts the credit response for your business is the credit bureau of the owner, the legal representative or the person who processes the credit. Through credit history, financial institutions know your payment behavior and the level of debt you have, thus analyzing the risk of lending. The best way to fix your history is to settle outstanding balances and pay on time. You can support a payment plan in which values your outstanding balances according to the interest they generate and prioritize the payments to amortize your debts. As well as having only the necessary financing and limiting the use you make of them.
Define how you will use the credit
One of the most important aspects of making a decision about applying for a loan and which most of the small and medium enterprises face is a strategic plan that guides the good use of this one. Experts from the “Center for Competitiveness of Mexico”, emphasize that SMEs need to consolidate with a better administration and set goals to achieve a good operation. Identify a purpose that will benefit your company and set very specific goals, such as expanding, opening new business opportunities, etc. Also with this analysis, you can help to define what amount you need to ask.
Find and compare the credit options that exist
Once you have the clearest picture, start by researching the financial institutions that you can approach to apply for your business credit. Compare what they can offer you and under what conditions. That is, the respective amount, the interest rates, the CAT and the term in which you must liquidate the entire financing. The recommendation for this aspect is that you choose the offer that suits both the ability to pay the business, in addition to the needs for which you are requesting.
This text is a collaboration of Harrison, an online platform created to provide financing to small and medium businesses in Mexico.