A bank loan is a good financing option for SMEs going through puberty. Choose the one that best suits your business.
The opinions of the employees of You are personal.
For businesses in puberty or in their early years this is the Bank loan It’s an alternative that can definitely add to your growth.
The ideal financing should offer the lowest interest rate, the lowest commissions, and the minimum guarantees possible. From a qualitative point of view, it should be procured quickly and adapted to the needs of the company (in terms of time and feasibility of payment).
Víctor Calderón, managing partner of ArCcanto company, recommends that you analyze the following points so that the loan you are getting is the most suitable for your company.
1. Don’t marry a bank
Manage your loan with multiple lenders and let them know that they are competing to provide you the service, who they are against, when they make a proposal and what rate you are waiting for.
2. Provide complete information
To expedite the bank’s decision on your loan, it is advisable that you provide your business information well and completely from the first time. Any clarification that the institution requires from you or any error found in the loan application can mean a delay of anywhere from a week to two months.
3. Use specialists
Unless you have high-level ties with banks, you should seek help from specialists who do. For example, ArCcanto has relationships with directors of nearly a hundred credit institutions who, after a proper process of financial analysis, make it possible to obtain credit on favorable terms.
4. Be careful with deadlines
Always make sure that the duration of the financing is longer than the period in which the investment of the project you are developing recovers. Otherwise the debt will no longer be payable. Serious Mistake: Acquiring Equipment or Machinery with a Revolving Loan.
5. Make sure your balance is in the currency in which you are billing
Otherwise, take out hedging to reduce exchange rate risk.
6. Opt for a fixed tariff
For long-term loans, opt for a fixed rate whenever possible. If the rate is variable, you will need coverage called a cap. So put a cap on the interest rate. This will reduce the risk if the rate fluctuates significantly in the future.