The path of entrepreneurship is synonymous with fulfillment for those who seek independence in labor relationships, have a passion with which they can contribute to the economic growth of the country and recognize themselves with self-management and leadership skills. If you identify with this description, you should know that, although finding financing for your business in Mexico is not always easy, it is not impossible either.

In this article we will break down the main challenges encountered in this process and alternatives such as those offered by online loans.


Main challenges when seeking financing for businesses

Small and medium-sized companies receive a very low percentage of bank financing, despite being large generators of employment in Mexico.

The above discourages entrepreneurship, given that it is estimated that more than 30% of SMEs close permanently due to lack of economic resources, which has an impact not only on the development of new companies, but also on the national economy.

Among the important aspects when considering financing are:


1. World economic situation

Macroeconomic variables affect the possibilities of accessing financing for businesses, affecting the granting criteria of banks, especially for companies that have been in operation for a short time.


2. Average approval time

In general, the smaller a company is, the greater its difficulties in accessing financing. If we add to this the fact that approval waiting times are usually long, the start of operations or their continuity can become complicated.


3. Costs and interest rates

The costs of contracting a business loan in a traditional institution are usually high, not to mention the interest rates and the Total Annual Cost (CAT), factors that in many cases discourage entrepreneurs from applying for bank financing.


4. Evaluation criteria

The most important criteria of institutions when granting financing for SMEs can be difficult to meet, especially for companies that are just starting out, among them the following stand out:

Credit history: There are many banking institutions that verify the credit history of applicants in the Credit Bureau. The problem arises when, since it is a first venture, there is no information available or it is insufficient.
Guarantee: In the case of financing for SMEs, it is common for a greater number of guarantees to be requested due to the unstable sector and the difficulty that banks face in evaluating them.


Difficulty in accessing credit: among the main causes of business closures

Many entrepreneurs consider the economic situation, policies and lack of access to financing solutions as one of the reasons for the failure of their ventures.

In the same vein, it is estimated that more than 50% of businesses that process a loan do so to continue their operations for one year.

Against this backdrop, although traditional banking continues to be one of the main sources of financing for entrepreneurs, some small and medium-sized companies have begun to request other types of financing, especially options that can be done online.

At Pymes Capital we are aware of the need for financing solutions for your business, which are fast and within the reach of companies that are starting or need to boost their operations. Visit us and get online loans through MCA or advance of future sales, which is an excellent way to finance your business without losing liquidity.