For companies in puberty or in their early years, bank credit is an alternative that can definitely contribute to their growth.
The ideal financing should offer the lowest rate, the lowest fees and the minimum possible guarantees. From a qualitative point of view, it should be obtained quickly and be adapted to the needs of the business (in terms of term and feasibility of payment).
Víctor Calderón, managing partner of the firm ArCcanto, recommends analyzing the following points so that the loan you obtain is the most appropriate for your company.
1. Do not marry a bank
Manage your loan with several credit providers and let them know that they are competing to give you the service, who they do it against, what is your deadline to make a proposal and what interest rate you are waiting for.
2. Deliver the complete information
To expedite the bank’s decision on your loan, it is convenient that you deliver your company’s information well and completely from the first time. Any clarification that the institution requests or an error detected in the credit application can mean a delay in the range of one week to two months.
3. Use specialists
If you lack high-level contacts in banks, consider the possibility of using specialists who do. ArCcanto, for example, has relationships with executives of almost a hundred credit institutions, which facilitate – after a due process of financial analysis – obtain a loan with favorable conditions.
4. Be careful with deadlines
Always look for the term of the financing to be longer than the recovery period of the investment of the project you will develop. Otherwise, the debt will become unpayable. Serious error: acquire equipment or machinery with a revolving credit.
5. Try to have your credit in the currency in which you invoice
Otherwise, hire a hedge to mitigate the exchange risk.
6. Opt for a fixed rate
In long-term loans opt for a fixed rate whenever possible. If the rate is variable, you need a coverage known as Cap; that is, to put a ceiling on the interest rate. In this way, the risk is mitigated if in the future there is a significant fluctuation in the rate.