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
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 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.
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.
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 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?
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?
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?
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
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.