How to know if your SME needs a loan? | SMEs Credit

Apr 16 How to know if your SME needs a loan?

Apr 16 How to know if your SME needs a loan?

The industry grows every day in an overwhelming way, so updating and constant growth are the best weapons for small and medium enterprises.

There may be several questions about how a SME can grow in such a competitive market, one of the most popular responses being a loan that helps increase investment in our business.

The problem is knowing when is a good time to apply for a loan. On the one hand, investment never hurts, but the current moment of the company may not be the ideal one; That is why several experts say that there are four keys to identify whether you need a loan at this time or not.

Your goals are clear, but your resources are limited

Your goals are clear, but your resources are limited

You may already have well-defined goals and the way you will reach them, but there are times when, even though we have an excellent strategy, the resources we currently have do not allow us to easily reach the goal.

Here it is worth sitting down to think if an injection of capital to be able to acquire from machinery, equipment or manpower will help you to increase the production and therefore offer new products and services that the clients demand in order to fulfill your objectives.

It’s time to grow organically

It

Without a doubt, organic growth is an advantage that some small companies have over large companies.

That is why when the evolution of the market poses the challenge of investing, improving and innovating to become a leader in the sector, you must seriously consider whether a credit will take your company to new levels that prevent it from being overtaken by the competition.

The competition is hard

The competition is hard

A sign that you need to think about new credit is when the competition begins to be more evident pushing your business to have to compete on quality and prices.

At this point experts say that it is good to meditate if you need credit to reduce production costs, through more efficient processes, machinery and systems.

Expansion

Expansion

Ok, your business has been a success, but what if you want to double that ceiling? This is where the idea of ‚Äč‚Äčexpanding your business and conquering new markets comes in.

For an expansion you will need all the possible support, so a loan can help you start that new stage in your company without damaging the finances of the first branch of your new chain.

Think about it, plan and execute

Think about it, plan and execute

A constant in every council is planning. Remember that to define if you need a loan, it is also essential to analyze the financial status you are in and the short, medium and long term goals of your business.

It is also essential that you identify the risks, scenarios and variables that will drive or modify your plans. In this way you will not only know if you need new resources, you will also have the certainty that the level of your income, production costs, sales and accounts payable will allow you to make the most of the new capital.

What financing options are there?

What financing options are there?

There are different financing options in the market, but few are focused on specific needs that small and medium-sized companies require, which, by the way, are the driving force of the Mexican economy.

Among the many financing options is Credityo, a financier where we will always provide security and transparency.

If your business already needs a ‘little hand of cat’ or an expansion, you can approach Credityo, where you can complete your request in just 7 minutes getting a quick response, without mentioning that you will never be asked for an advance or endorsement.

If you need a credit for your business you only have to have more than three months invoicing so you can qualify for a loan from 100 thousand to two million pesos (everything depends on the size of your billing and credit history).