The sins of a MSME when requesting and obtaining a loan

It is inevitable that we think of financing to expand a business or improve operational conditions. When revenues are still nourishing the initial investment as happens in most micro, small and medium enterprises. What should be taken into account when requesting a loan? What does the business bank evaluate?  A more optimal way to request a loan is to be documented by the different communication channels of the bank about the credit offers. What defines whether or not there is ability to pay a financial obligation is its flow. It is derived from subtracting revenues from business expenses. This way we know if it is possible to cover obligations that it has and those it is requesting manager of banking.

obtaining a loan

Does body language matter?

A good attitude is reflected even in the face of the face, a casual and natural expression connotes trust, makes a conversation empathetic and complicated issues flow with greater opportunity to a good outcome. When explaining the business situation to apply for the loan, one must be honest and clear, without straining the conversation with a rigid attitude that makes it difficult for the bank’s advisor to understand the request.

Make up the real situation

Increase or decrease real figures before the loan application, it may help to put a couple of zeros more to the loan. A mistake leads to breakdown and destabilizes the financial health of the business it is a very risky action. Many times in the applications tends to show a situation above what you have. The current business situation and the need for investment should be detailed as transparent as possible. As long as it is transparent, the adviser will be able to guide in a better way, “added Portillo.

Approved application

After obtaining financing, we must take care not to commit damaging errors, both in the economic stability of the business and in the personal credit record. These are summarized in three common faults.

Omitting budgets

If it was requested for the business, it must be invested in the budget, because the payment capacity has been studied and what that investment will generate has been taken into account.  If you do not invest in the business, you will not improve your ability to pay or your income. But it will increase your financial burden. There are many who go bankrupt because they ask for business. They go to Europe or remodel the house explained Portillo. He stressed that it is not healthy to carry a loan on behalf of the business for other purposes.

Wait until the last day to pay the fee you

What is healthy is to divide the fee in the number of days or weeks to set aside what corresponds and cover the payment. It is ideal to complete the total of the quota before the date assigned for the payment. If you do not have the corresponding day, you can delay and generate unnecessary interest.

Accumulate arrears

A day in arrears is an additional percentage of interest. When he pays a day or a week later and only pays the fee, he does not pay off the debt Portillo said. We must rely on the various tools provided by the bank, online service, and telephone service. Nearby your frequent places, etc. that shorten the time you use to pay your credits and avoid expiration of the term.