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Why Apply for a Loan?

Let’s start by reminding you what Fintech is. This is the name given to finance companies that use technology as their main tool. The concept is a composition of the words financial and technology.
What differentiates fintech from traditional finance companies is the use of technology in each of the processes they perform.

The biggest benefit they offer you apart from being able to finance your SME is the speed with which they manage to give you an answer. Likewise, the processes they handle increase customer satisfaction.

Why is time money?

Why is time money?

Asking for a loan in the traditional way can take you days that you could be investing in your business and its improvement. Order one in a fintech shortens the term and the journey to an establishment. They can also offer you a better option of products.

If you acquire a credit in this type of company these are other advantages that you can have:

Less requirements

Less requirements

Since the fintechs are totally technological, each of their processes with clients is through digital tools. Your request is through internet and the documents that you request are also sent in this way.
It is more convenient to request a loan in this way since they have the facility to acquire more information with less requirements.

But clearly here many entrepreneurs fear, but they need to trust since there are laws that regulate them. It is very difficult that your information is in danger, especially if you choose correctly and investigate the company.

Lower cost

Lower cost

The credit they offer may be greater than others. The interest rates they establish are lower than traditional banks, because they reduce many additional costs that this would charge you.
They are the best option if you are undertaking them as they are fully adapted to the needs of each of the clients and their SMEs.

Greater financing

Greater financing

Since they are adaptable, your financing could be better and better if you manage it properly. Of course they evaluate important data to analyze your ability to pay and based on that make you an offer.
We recommend you stay up to date with your financial knowledge in order to benefit your SME, improve your credit history and the profitability of your business.

Are they for SMEs?

Are they for SMEs?

The index indicates that more than 80% of economic units in Mexico are considered small and medium enterprises. Which is very important for the development of the country.
The fintech’s mission is to cover the bias that the big banks leave behind: SMEs and their momentum.

If what you want is a credit and ask for it in the easiest way and without wasting time this is the option.

Remember that you should thoroughly investigate the company that you decide to feel comfortable giving your data. But above all that the offer you provide is not only the best but the appropriate one.

Leasing or SME Credit? What’s Good for Your Business

It is very difficult to decide if you own an SME what financing is right for your business. That’s why we want to give you the necessary information so you can choose between SME credit or leasing. Maybe the second term is unknown, but with the growth of SMEs in Mexico, new credit models have been created that help both an entrepreneur and an SME owner to continue with their projects.

Next, we will tell you what each one is and which one is best for your business:

Leasing

Leasing

Leasing has emerged as a loan that works similar to a common lease. That is, it is totally an agreement between a financier that allows to facilitate the use of physical goods such as machinery, transportation, real estate and even technological systems that allow improving the processes of your business. But the good belongs totally to the financial company, while you are paying an income every month for its use. In a few words you can finance 100% of the value of the purchase of what you need, while you pay month by month for the use of that good.

SME credit

SME credit

The term SME credit will sound more common, but we want to make clear what it is; This type of financing is very specific for small and medium enterprises that want to grow and reach new horizons. Since it does not limit its use to the acquisition of goods, but adapts to that and all the needs that may arise in a business. For example, to raise your capital, improve your inventory, finance a specific project or even expand your business among many other actions.

Which one suits you?

Which one suits you?

The main point of comparison, depends on the need or needs of your business at this time. That is, you may need to improve production or provide a more complete service, then leasing could help you to solve your need. But if, in addition to that, there is something unforeseen with your inventory or you achieve a very important business opportunity, which will make your SME grow, you would have to apply for a loan elsewhere. What would make your level of indebtedness grow with the possibility of losing liquidity for your entire business.

We can say that an SME loan brings greater advantages, since you can finance your machinery, software or transport fleet, and also use part of that amount to enlarge your staff, expand or remodel. Also with this type of financing you have complete control, because you can choose what and how to invest to achieve the goals of your business.

As you can see, the facilities and advantages of an SME loan on leasing are higher. With one you get an amount of money that you are free to use and with another you can only acquire one good for a certain time.

Learn more about credit for small and medium businesses in our blog and enter Herne the Hunter so that in just minutes you can discover how much we can offer to boost your business.

On what to use the Restaurant Loan | Business Tips

Restaurant credit can make a difference in your business and become an instrument that accelerates your growth. The number of restaurants in Mexico grew by 6.5% during 2017, which forces establishment owners to look for differentiators and create strategies that generate positive experiences for their clients.

Having a credit for restaurants will help you cover different expenses and not lose liquidity. From maintaining the workforce and buying supplies; until doing a remodeling or opening a new point of sale.

I share 4 strategies that you can implement in your restaurant to create a value offer for your customers.

# 1 Redecorating your restaurant

# 1 Redecorating your restaurant

Giving a new look to your store can help you attract new customers. Before redecorating, define the theme of your restaurant and the food you offer. The decoration will be different if it is a restaurant with Mexican food and one with French food. The goal is to create a pleasant atmosphere for your clients and create a different experience.

# 2 Hire talent

# 2 Hire talent

The food says a lot about a restaurant and like in any business, the talent you hire will make a difference. Hiring a Chef to change the menu can help you differentiate yourself from the competition.
When talking about talent, it is also important that you analyze the capacity of the staff. A quick service and friendly service can be a differentiator of your restaurant. If it is necessary to increase your workforce, do it!

# 3 Acquire new equipment

# 3 Acquire new equipment

From a coffee machine to an oven that allows you to increase your production capacity. As a business owner you will know that buying kitchen equipment can be a complicated area. Before deciding to change or acquire a team, analyze the needs of your business and the tastes of your customers. Make sure the team generates value for your restaurant.
Remember that not all machinery must be new, there are products that already had use but are in good condition.

# 4 Open a new store

# 4 Open a new store

Many of the large restaurants started with a small store and were growing as the market required. Analyze if your business is ready for a new branch and request a loan to finance it. Carrying out a profitability study will help you make a better decision when requesting financing for your project.

As we mentioned at the beginning of the post, restaurant credit can become a tool that accelerates your growth if you use it in the right way. Analyze your market, define the objectives you want to achieve and choose a strategy to provide a new experience to your customers.

How to Find the Right Loan For Your SME

If you are determined to apply for a loan for your SME, the main thing you must do is research, either online or physically, in order to know all the financial institutions that offer business loans, as well as the different types that exist. Then we will start by telling you basic things about the credits so that later you can find the right one.

Today, the possibility of a small or medium-sized company acquiring a credit from any financial institution is greater. Well, if we analyze the panorama of SMEs in Mexico, they contribute 42% of the Gross Domestic Product of the country. 

Types of credit that exist for an SME

Types of credit that exist for an SME

First you must know that there are different types of financing specifically for business. They are all different, either because of the way they offer you money or where it is obtained from.

Seed capital

Seed capital

Seed capital is a form of financing obtained through a close circle of people. It is very common among entrepreneurs at the stage where the company is barely created. It is usually to resort to your family or friends to ask for the loan and be able to solve your business. Obviously this form of financing is conditioned to a promise of payment, which will be well accepted if they trust you.

Crowdlending

Crowdlending

This type of financing is managed as a collection of money from different investors. The most common way to reach them is through online platforms. Where you register your project or business for investors to evaluate if they want to contribute money so you can do it. Here the interest is very important because it is how they get the benefit of lending you.

SME credit

SME credit

This type of credit is the most focused on the growth of business. Since it is offered by most institutions that operate either as banks or as financial institutions. The management of this is through an amount that you offer, with certain interests and a certain period to settle. It is highly recommended for when you have to carry out a large project in your company or if you really need the money immediately.

Financial leasing

Financial leasing

Financial leasing is a new way of financing some aspects in business (with aspects I refer to physical assets). This gives the opportunity for you to use tangible or intangible assets, which you need to operate or produce your product or service in exchange for a monthly payment that defines the value of said good or goods. It works like a lease but in the end there is the option that you can buy the material that financed you and become a permanent tool within your business.

Why is credit an investment?

Why is credit an investment?

To help you a little more in your research knowing where you can apply for a loan, you must be aware of what it means to have it and to see it as an investment.

A loan is a loan of money that is given in order to help pay for certain expenses. Having it implies both responsibility and good management of your finances, this will make your experience a positive one. But for you to visualize it as an investment and not so much as risky, you must be very clear about what you will use it for, and above all, that the use you make of it will really make your business grow.

If you make a strategic plan in which you can control the use that you are giving to that money you will see that it will be easier for you to measure the results that are being generated within your SME.

What would be the ideal credit for a business?

What would be the ideal credit for a business?

The ideal credit for a business is not standard. That is, it must be the one that adapts to the needs of your SME but above all to their capabilities. As you will see, what you want to do with what you can offer depends a lot. You must compare amounts, interests and terms. Like the conditions that each institution establishes. With that you can choose the best and be able to give that boost that your SME needs.

How and where to look?

How and where to look?

The way you can start your research can be online. Many institutions that are also physical (banks) have a website in which they share information. But to apply for the credit it is mandatory that you go to their branches. The interesting thing in your search is that whether you choose a crowdlending or an online financial you have to see that they are safe. There are institutions that regulate them like the Condusef. The advantage of you focusing your search on financings that are totally online is that you get a quick response for any information or procedure.

Tools that help in your search

Tools that help in your search

So that you can compare perfectly the institutions place a tool on their website called “simulator”. Which helps you to give you an estimate of how much you could get in amount, how much to pay monthly and with what interest rates. One tip is that you can already have a real budget ready for you to write the amount and the simulator works better for you.