Types of credits for small businesses
There are numerous types of credits for small businesses, as well as an almost ridiculous amount of different plans offered by banking institutions. However, according to various studies, SMEs in Mexico choose other alternatives to obtain a loan.
The study Evolution of financing
The study Evolution of financing to companies during the July-September 2014 quarter , conducted by the Bank in Mexico, showed that more than 80% of small and medium-sized companies turned to their suppliers to obtain some type of financing. For its part, the Barometer of Expense Management 2014, developed by the consultancy of analysis and reduction of operating expenses Expense Reduction Analysts, reported that only 12% of companies resort to bank loans to finance their different needs.
The above may be due to different factors but, without a doubt, a predominant one is the lack of capacity of banking institutions to provide clear information on the mechanisms and guarantee systems of their small business credit plans. On the other hand, the interest rates of the credit market and the conditions of access to bank credit are perceived as obstacles to accessing said credits, data that we confirm in the survey conducted by Bank in Mexico.
We have the types of loans for small businesses
That said, we have the types of loans for small businesses – other than those offered by banking institutions -, among which are those offered by the government and funding companies. The most popular ones already work online and provide clear and concise information to help us make the best decision when choosing which ones are best for us, talking about types of loans for small businesses.
And of course, whatever we choose, we must not lose sight of
- CONDUSEF (National Commission for the Protection and Defense of Users of Financial Services), is here to help us make informed financial decisions, as well as to protect and defend our rights against financial institutions.
- Before applying for a loan, prepare a clear and realistic business plan.
- Separate the accounts that correspond to your SME, yours as the owner. Revolving accounts can void the acceptance of credit, and it is also not healthy for you or your small business.
- If you decide to look for a small business loan, check that it covers all your financing needs and that the lending company is serious and legally established.
- Read all the documents very well before signing them.