What should I take into account if I want to request a loan for my company?
We will provide you with some 'highlights' so that you know what you need if you are considering applying for a loan for your business.
Credits can be taken by small and medium-sized companies (SMEs) in different situations. In the last 12 months, the pandemic caused loans to be considered by microentrepreneurs to cover expenses or to be able to survive a little in such an uncertain panorama.
However, we have been in this situation for more than a year and perhaps some businesses have already recovered a little economically compared to previous months. For this reason we will provide you with some highlights so that you know what you need if you are considering applying for a loan for your business.
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In this sense, the experts from Expediente Azul , a technological platform specialized in digitizing the process of integrating files for companies that grant financing, shared with us what to take into account:
- Ability to pay: for a finance company to lend money, a series of conditions must be met, among which the ability to pay is essential. For this, it is requested to verify income, seeking to determine the probability or risk of default.
- Score in the Credit Bureau: the Credit Bureau is an institution that stores the credit information of all bank users. There a credit history record is kept, with which a rating is formed, later used as a reference to know the type of client you are. If you pay on time and you are a good customer, the companies that grant loans will surely lend you money.
- According to data from the Blue File , financial entities request approximately 14 requirements to provide an individual loan and 40 if it is business. Keep in mind that the process can be cumbersome, long, and strenuous. Although thanks to technological platforms that are streamlining the management of credit granting, the time it takes to collect requirements can be 200% faster.
- Minimum of 6 months of billing: the main reason why credits are rejected to SMEs is low or non-verifiable income. For this, financial entities will request financial statements, returns and billing with specific figures that vary from entity to entity, to ensure that they can grant the credit with all the guarantees. It is at this point where 40% of businesses do not achieve their mission and the process itself is a funnel for financial institutions, since they lose 60% of operations due to problems of communication and integration of requirements, without having 20% perception of dissatisfaction by potential customers.
- Balance point: achieving the balance point will depend on a good financial management of the company, this is the skeleton of the organization and where you can see the sales projection, debt management and cash flows, with which, if If you have high levels of prior indebtedness or your point of return on investment is inordinate terms outside the reality of the sector, it is most likely that the financial institution will reject the credit.
Check if your venture meets all the necessary requirements so that you do not have problems when requesting a loan.