Throughout the life cycle of a business and especially a small or medium business, you will need a lot of financial help to be able to continue with the corresponding tasks. But it is precisely in the development stage, when you need to have adequate capital to implement the strategies that will make it possible to take off to the next level.
This capital that is required can be obtained through a loan or loan offered by financial institutions for the continuous development of businesses or companies. Well, according to statistical data of our Pyme Credit Report, 45% of the owners of these, request financing with the vision of making their business grow. However, it is not easy for many SMEs to access formal financing, mainly due to the requirements they request.
Below we will tell you the basics so that you can choose the best loan and how to guide it to reach the best stage of your business.
The ideal loan
For an SME the ideal loan is one that can provide enough for what you need but at the same time adapted to the ability to pay that you have. That is to say, when you request money for a business, it is recommended that it be based on an amount that can be paid together with the normal expenses that you already have. In that way, the experience of acquiring the credit, using it and liquidating it, will be positive.
- Check the minimum and maximum amounts they offer so that you can discard according to the budget of what you need.
- Subsequently, it analyzes the interest rate they manage and the annual CAT.
- And finally, know what benefits they offer for good customers.
As we mentioned, the requirements are an aspect that limits that many small and medium companies can even request a loan. And that is why today the dynamics have changed, but not precisely in traditional banking, but in those financial institutions that really believe in the impact that SMEs have on the economy and society.
That is why you will find that some only request your basic data and those of your business, without asking for a minimum monthly income or a guarantee or guarantee. We recommend that you research and compare all those institutions that offer “loans for SMEs” so that you can choose the one that suits what your business has.
The strategy to reach the best stage
# 1 Keep in mind the strategic objective
Once you obtain your loan, it is ideal to keep in mind the strategic objective for which you requested it. Well in this way you will really take your business to a beneficial progress in every aspect.
For example, your goal may be to distribute your product or service to a larger territory. So, the goal already having the credit will be to open new sales channels that reach the largest number of potential customers.
# 2 Manage the credit properly
Another advice is that you have control over the use that is being given to the loan, this in order to know what amount is still. Well, if the opportunity exists, you can make more than one strategy at a time and thus make the most of your money. But if on the contrary you realize that you still need more money, you can go to the institution where you applied for your credit and see the possibility of increasing it.
# 3 Measure results and look for more opportunities
As a third step, the most correct thing is that you are always measuring the results you get from the implementation of the strategies. Well, you will know if it is worth the effort you are doing and also what it is that you need. In the same way you can identify your strong areas to take advantage of them and grow your business from there.
As you can see, you can really take your business to the best stage of its life cycle with the help of a loan. Just remember to keep present the results you want to achieve to make the best decisions.