There are different types of credits that an entrepreneur can access in order to meet the needs of their business; but without a doubt what could condition them is the stage of development in which each company is. This is because financial capacity is important to give good credit management and that it does not represent a financial burden for the survival of the company.
Financing for entrepreneurs
For businesses that are just starting out the best credit is one designed specifically for them. In other words, the amounts are limited and fair so as not to expose your solvency, the requirements according to your abilities and with good payment conditions.
There are financing or credits ranging from 100,000 to 850,000 dollars, figures that can be very useful to finish launching the project, promote the scalability of the business and even consolidate it. One recommendation is that conditions such as the interest rate are not only competitive when comparing various options, but opt for fixed rates so that over time the cost of credit remains stable.
Another type of credit that you can find in different financial institutions is credit for SMEs, which is usually characterized by offering higher amounts than those usually granted to businesses that are just starting.
The offers that can be found in this modality range from 100,000 to 2 million dollars. With conditions like 6 to 24 month terms, a fixed interest rate and requirements that businesses can easily meet. Some financial companies do not even need you to present a guarantee or guarantee to access these amounts.
For its part, business credit is aimed at more consolidated businesses for which its financial management implies being more strategic, both to become sustainable and to have stable liquidity. The amounts they can request usually range from 1 million to 15 million dollars.
The conditions for this type of financing mostly include presenting a guarantee or joint and several obligation. Also in aspects such as the interest rate or commissions are more personalized and with a term of up to 5 years to pay off the total credit.
Where to find the ideal credit for your business?
Although traditional banks are almost always the first option everyone thinks of when purchasing a financial product, including business loans; There are other alternatives to get them. These entities emerged since 2006, seeking to increase access to credit to all those neglected by the banking sector, as well as to provide more agile solutions using technology.