The start of operations, growth and expansion of SMEs brings with it commitments that usually require business credit that can be adapted to their payment capacity. However, it is important to take into account that obtaining it will depend on the behavior and credit history of the applicant.

Let us remember that this history is the assessment made by financial institutions regarding punctuality in payments and compliance with the conditions of financing for SMEs.

The following are steps businesses can take to build a strong credit history:


1. Separate personal activities from those of the company

The first step is to legally register the commercial activity. Next, it is essential to separate business income and expenses from personal ones. By establishing this limit, you will avoid compromising your financial stability in one area or another.


2. Be punctual with financial commitments

Another key to maintaining a healthy credit history is to pay bills, debts and business credit commitments on time, as this confirms to institutions the financial responsibility you have, positively impacting your credit rating.


3. Carry out responsible financial management

In the case of a first credit application, it should be kept in mind that the granting institutions can review the history of each of the partners. To obtain a positive response, it is essential that, some time before making the request, everyone’s behavior in relation to their personal loans or financing for SMEs is impeccable.


4. Frequently check the Credit Bureau report

There are many business owners who detect errors in their Credit Report. Hence the importance of verifying each of the movements that are reported through Círculo de Crédito or Buró de Crédito, the Credit Information Companies in charge of preparing these reports.


5. Automate reminders and payments

Digital tools are a great ally of financial management. This is because with all the responsibilities that come with the activity of a company, it is possible that payments may be forgotten on the corresponding date or errors may be made in the amounts. Therefore, having an app that sends reminders about these aspects can be a good way to avoid surprises in the credit report.


6. Avoid debt and exceed the minimum payment

Although it may require extra effort, it is preferable to make payments that exceed the minimum to pay off a debt in less time and reduce interest.

Currently, it is estimated that in Mexico, 6 out of 10 SMEs finance their working capital and obtain liquidity by paying invoices from their suppliers and less than 30% of companies obtain financing through banks. These figures reflect the complexity of the panorama in relation to the accessibility of financing for small and medium-sized businesses.


Online financing of Pymes Capital

That is why having alternatives such as online financing, such as those from Pymes Capital, supports the growth and expansion of small and medium-sized Mexican companies.

Obtaining resources through MCA (Merchant Cash Advance) or cash advance is a great alternative to finance businesses that are beginning to grow, since the process is quick and the financing payment is made depending on the sales they have.