Today getting a good credit companies is not easy due primarily to the fallout from the global financial crisis which has tightened the requirements by financial institutions. The following provides a few tips that will facilitate the process of getting a business credit.
1. Have at least two years of high finance (this of course this depends on the laws of each country): This is an extremely important requirement for commercial banks granted credit to any business enterprise. In this regard it is important to declare all income but paid little or no tax. You must remember that the more income declaration, the higher the credit available to your company especially if it discharged and meets the bank.
2. The main shareholder of the company must be at least 25 years and under 70: This depends on each bank, as there are some that can give companies a credit for people with only 20 years of age but not at the same time gives over 65, due to the risk of an advanced age against the pay period.
3. Provide proof of income: Any financial institution will ask you to verify your income before granting a loan companies. To this request updated financial statements, but for SMEs with neither likely to use other means counter.
4. Analyze whether to call the loan in dollars or local currency: A company that earns revenue in dollars would be very bad to borrow in that currency because if the exchange rate soars, so wills the debt. This credit may only be requested by those companies that generate dollars and otherwise not worth it.
5. Decide if you need a loan in the medium or long term: A common mistake many people and businesses is not to analyze the type of credit companies who need to ask. Ask for a loan without really defining the destination and the time of credit which eventually cost them dearly. If you need a loan for the purchase of machinery or a building, it is best to request a loan in the long term and short term probably not have the liquidity to cover higher interest payments. Credit to a longer period will allow you to make small payments which in turn will make your company has enough capital to keep growing.
6. Have securities guaranteeing the loan: Depending on the amount of money requested, the bank may decide to request a guarantee to support the credit. Of every business depends on the type of security that can or will offer. Usually it is a property and to employ only the owner must prove to the financial institution that owns and is in his name. If you do not have property, the person may apply to institutions that offer credit without a guarantee of this kind. It is clear that the more guarantees, the interest rate will be lower.
7. Apply for credit only companies that can afford: Never ask for more money than you can afford based on company revenue. If you want your business to continue to exist in the future, this rule should not be broken. For working capital, the company must produce at least three times the amount of credit repayment. So if you want to apply for a loan of 40 million and the company earns 10 million, surely cannot meet credit obligations.
8. Provide references of the main shareholder of the company when applying for a loan company: If the main shareholder of the company does not have credit references will be difficult for any bank to grant financing, because for them this is an important requirement.
Finally, do not make the mistake of credit companies will never ask and pursue the growth of your company through equity financing. This is just more expensive and lasts longer. Borrowing is not necessarily bad, it is often necessary to grow and can be profitable if done intelligently.
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