One of the most important decisions that you as an entrepreneur have to take to carry out a project or as a company to carry out the needs of your business is the origin of the funds to finance you.
For this, you have two main options:
- Internal financing
- External financing
Now is when you will pose … what is the best way?
It is always advisable that you diversify in the origin of your funds to minimize the risk associated with the cash flows that you will obtain from the project or business.
Where to ask for a credit?
Mainly when you need to know where to ask for a credit you must inform yourself of the advantages, inconveniences, requirements, deadlines … that the different credit entities have when financing you.
There are several companies that have been emerging as a result of the economic crisis suffered in recent years in Spain and the rise of new technologies. The crisis has led banks to close the tap on loans to companies.
During the last ten years, private equity companies specializing in financing for companies, web platforms … have been created that have filled the financial gaps that companies needed and could not get from the established entities.
Here we show you some of them:
Ask for credit from banks
These entities were the most resorted to when liquidity was needed for the companies but, as a consequence of the crisis, they have been limiting the granting of credits and tightening the conditions, facilitating the resurgence of the other entities or platforms dedicated to that end.
It is true that now, banks are increasing their financing offer for companies, but it is important to carefully study the conditions of the credit, if there are commissions for repayment of the loan or if you have to contract additional products, among others.
Two requirements that usually ask you to finance your company through this method:
- Have a connection with the entity.
- Have a high level of solvency.
Ask for credits from private equity companies
The financing of private capital is aimed at consolidated companies that have efficient and growing projects.
For this type of financing, you can decant if you value positively the participation of private capital in the company and you see it as a way to expand and diversify the usual sources of financing.
In general, to request a loan from these entities, it is common for you to do it online with considerably fewer procedures than banking entities.
Ask for credits through Crowdlending platforms
The main purpose of these platforms is to get in touch with individuals and other companies that, in exchange for a return or interest, provide you with the financing you need in the form of a loan.
Again, the process is much more agile than other entities, thus constituting a perfect complement to diversify, once again, the source of your funding sources.
Normally, this type of financing is done online which translates into greater comfort for you and for the financing of your company.
In addition, the conditions under which to request an online credit often, are more advantageous, since they do not consume CIRBE, free amortizations are allowed and you do not have to contract additional products. In MytripleA you can get your loan at 3.90% APR enjoying all these advantages. Apply for a loan now- weblink.
How to ask for a credit?
We propose a series of recommendations that will help you to ask for a loan:
1. Request the right amount and necessary
It is important that you perform a thorough analysis to know the credit needs of your company and thus request the right amount. Keep in mind, that all the amount you borrow will generate some interest that you must pay to the entity or individual, in the case of crowdlending, on which you request the credit.
2. Know the purpose for which to allocate the credit
You must know how to delimit the activity or project on which you are going to invest the credit. In many occasions, it is convenient to prepare a budget. Deviations and unorganized plans will make you need more money or, on the contrary, you have requested a loan higher than necessary. In interest, it translates into larger amounts that you will have to pay.
3. Ask for the credit in the currency you invoice
If you launch by requesting a credit in entities of foreign origin or your company invoices in a currency other than the euro. Whatever your case, request the credit in entities that lend in the currency that fractures; otherwise, it contracts a risk coverage that avoids the foreign exchange risk generated.
Four. Deliver complete and truthful information about your company
When you are going to ask for a loan, be it the entity that is, they will always carry out an exhaustive study of your tax information, evaluating the granting of the credit. Therefore try to be honest and clear with the information you provide.
5. Know your ability to pay and be careful with deadlines
It is advisable that the financial term or return of the credit is longer than the recovery period of the investment you are going to make. If this is not taken into account, you could incur in arrears which will generate serious consequences and penalties.
6 Look for alternatives when asking for a loan
Once you have all the steps above assess the different alternatives you have to ask for a credit and choose the one that best suits the capabilities of your company.
With these recommendations, you will be able to request a loan in a responsible manner that will make your future project or your current business a wise and efficient decision. Never forget that the time invested in assessing which funding sources will be the most appropriate, is not wasted time; but effective time.