In Mexico, SMEs represent a significant percentage of the total jobs generated in the country, being more than 70%. However, despite its importance for the stability and economic growth of the country, one of the most important difficulties faced by entrepreneurs who have a company is adapting their business to the characteristics of the financing offered by different financial entities.

In this sense, it is essential to analyze the aspects that we will develop below to be certain that a business loan is in line with the applicant’s borrowing capacity and that it will provide the business with the necessary boost to start or expand its operations.


External financing sources: aspects to consider

According to data from the Mexican Entrepreneurs Association (ASEM), more than 50% of entrepreneurs recognize the lack of access to external financing sources as one of the biggest challenges for the emergence of new companies.

Regarding the above, it is estimated that many of the businesses that close must do so due to lack of capital. Therefore, it is essential to consider the following aspects when choosing a financing option.


1. Approval period

Approval deadlines for external financing sources depend on the type of business, credit history, and how long its operations have been in operation.


2. Requirements

Although the requirements vary from one financing solution to another, these are some of the most common when applying for business financing:

  • Be registered in the SAT as a Natural Person with Business Activity or as a Legal Person.
  • That the credit applicant has a minimum age.
  • Check a healthy credit history.
  • If you are registered as a Legal Entity, it is necessary to present the articles of incorporation and the power of attorney of the business representative.


3. Total Annual Cost (CAT)

The CAT of a loan is an indicator of the overall cost of the credit. It is the sum of all elements, including the interest rate, annuity, commissions and other costs, excluding VAT. Therefore, this is one of the characteristics of financing that should not be overlooked when comparing options.


4. Interest rates

Interest rates for business credit can be fixed or variable. A fixed interest rate implies that the initial established installments do not change over time. On the contrary, if the interest rate is variable, it will be modified according to market changes and the adjustment rule of the granting bank or institution.


5. Payment term

Generally, the longer the payment terms, the smaller the monthly amount will be, but it will take longer to pay off the loan. Following this logic, although a reduced term implies larger payments, the interest rate will be lower.


Online financing with Pymes Capital

Understanding the landscape of entrepreneurship in Mexico, at Pymes Capital we have solutions such as online loans through MCA (Merchant Cash Advance), which is based on the future sales that a business will generate.

This type of financing offers a high approval rate, is dynamic, tailored and has an agile and very fast process from when it is requested until a response is received, so that you can meet your business goals sooner than you imagine.