Both to ensure the survival and to boost the success of small, medium and large companies, business financing is a fundamental element. However, for small and medium-sized enterprises (SMEs), which are in the process of growth, having good sources of financing is especially critical due to their limited financial resources.
According to data from Banco de México, the total credit portfolio granted to SMEs by commercial banks and regulated Multiple Purpose Financial Companies (SOFOMES) was made up of 560.6 thousand loans, with a balance of 425.6 billion pesos with which it was serviced to over 323.9 thousand companies.
What is the importance of business financing for SMEs?
When companies are born and begin to promote their activities and projects, it is essential that they have a financing plan that contemplates the various costs and expenses to be covered for the initial operation, as well as for the growth and expansion of the business.
In this way, business financing becomes an important issue for SMEs, since it can be decisive for their survival and growth in an increasingly competitive market.
Financing for companies helps in:
1. The stage of birth
Most start-ups need start-up capital to start their operations and cover expenses such as the purchase of equipment, inventory, physical space, etc. In this case, SME financing sources can provide the necessary capital for these costs and start the business.
2. Cover operating costs
Once the business is up and running, it is important to have enough working capital to cover day-to-day operating costs, such as paying salaries, vendor bills, rent, or other operating expenses.
3. Expansion and growth
When a business is profitable, it is possible to think about expanding and growing it. This may include opening new branches, introducing new products or services, and hiring more staff.
However, it requires a solid financing plan. To do this, sources designed to make payment more flexible based on business growth are useful, such as the Merchant Cash Advance (MCA), where financial companies give the company money in exchange for a part of its future sales.
4.Crisis
Definitely, in times of crisis is when financing sources for SMEs are most required, since in the absence of capital it is difficult to survive and prosper in a competitive market. A well-planned capital injection can bail out a business and give it new strength.
Business financing with Pymes Capital
Sure, SMEs financing is essential for the growth and expansion of small and medium-sized businesses, but it can often be difficult to obtain due to the high requirements imposed by financial institutions.
Pymes Capital has the financing service of MCA for SMEs. Being an online financing platform, it offers an alternative to traditional loans. Your application process is simple and fast, since you only need to fill out an online form with basic information about your company and your financing needs.
Then, Pymes Capital will quickly and efficiently analyze your request. Learn more about the financing service with Pymes Capital and elevate the success of your company to another level.