What do I need to apply for a loan for my business?

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Regardless of the size and type of business, all companies sometimes resort to loans, so it is better to inform yourself before taking that important step.

In Mexico, 4 out of 10 companies have applied for a loan at the beginning stage; the figures decrease as the size of the companies decreases. A recent study indicates that the two main reasons why entrepreneurs do not ask for a loan; It is because of the lack of interest and the second, because of the excess costs of credit products.

The first years of an SME’s life, regardless of its size and type of business, sometimes resort to loans to cover extraordinary expenses. Experts say that on many occasions it is due to the little experience they have in the financial field and the lack of knowledge about financial products and services.

For the above, they recommend, to inform themselves about what is offered in the market, the different companies that are dedicated to the service of loans to SMEs have different schemes and services, which in the end will result in the company that requests the loan, manages to survive with accessible debts and that do not become, over time, unpayable chains.

 

Bank generally requests that companies have a well-defined business plan

Bank generally requests that companies have a well-defined business plan

It is said that it is the most basic and is an essential requirement to consider. It serves as a business cover letter. It must also have a well-defined ideological structure, it must include the vision, mission, values, objectives, competencies, competitive advantages, among others.

It must contain, in its documentation, the structure of the well-defined environment, that is, where the strengths, weaknesses, the niche or the public that will be a consumer, market analysis and the frequency in which the public buys the products of the business are observed . It must have a mechanical structure, where you can easily visualize your business strategies to achieve financial objectives.

You must analyze the sources of your income, a concrete plan to prevent losses. Those offering loan services evaluate in detail the risks of the business, the weakest areas and the landscape where the strategies could not succeed. Some others even request to know in which the borrowed resources will be invested.

Remember that starting a business is not a matter of money, but also requires information and research in appropriate sources and before requesting a credit product ask for advice.

 

Before applying for a loan

Before applying for a loan

Ask yourself if you really need it; It can be a big push for your company, but if you don’t use it properly it can become a burden. If you want to start your business, there is no excuse! There are many supports to achieve it, the detail is to take the time to look for the options indicated for you.

The most effective way to get financing for your company is to be prepared with everything mentioned above, this will allow you to expedite the financing process.

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