A first step to find adequate financing is to consider this factor from the time a business plan is drawn up, taking into account the needs to be met and estimating a term to cover the loan received.
For this, it is important to evaluate the ability to pay and, even more, to ask the necessary questions to define what the business requirements are and what your financial strategy will be.
At this point, it is useful to ask yourself the following questions when analyzing funding sources:
1. What is the financing needed for?
Online loans have a high impact on the growth of companies and can be used for various purposes, ranging from starting operations, increasing productivity levels, acquiring updated technological equipment or dealing with a crisis.
The financial strategy may be supported by different types of credit, such as bank credit, government financing, angel investors, partners with capital or venture capital funds.
2. What capital is required?
This point is directly related to the previous one, but defining it will also require an analysis of the company’s ability to pay. In the case of some financing, such as that of Pymes Capital, this does not represent a problem, since only a weekly percentage of the sales that are made is paid.
3. What is the applicant’s credit history?
Checking a good credit history is a basic requirement to apply for business financing, including online loans. After verifying their status in the credit bureau, the granting institution ensures the applicant’s commitment.
To this requirement is usually added a certain seniority in the operation of the business, an annual amount of sales -which allows verifying your financial capacity- and documents such as current official identification, proof of fiscal situation before the SAT and account statements of the last months .
These are the main aspects that a business plan should consider, but it should also be taken into account that there may be other requirements, which will vary depending on the financial institution.
4. Is there a defined business plan?
As we have said, this is an essential tool for companies to start their operations, position themselves in the market and expand over time.
This document reflects the business projections, together with the sources of financing, which makes it a very valuable analysis tool.
It also includes the marketing strategy, market research, mission and vision of the company.
Business plan and financing a business
Within the functions of a business plan, is to document the business strategy to execute it in the long term, secure financing and generate accurate forecasts on market demands.
More specifically, when requesting financing, a business plan helps investors or financial entities understand the objectives of the company, the way in which the capital will be used and how it will be paid over time.
In this sense, it is usual for investors, banks and venture capital companies to seek a review of the business plan when analyzing a possible credit. Hence the importance of including a detailed financial strategy as part of this document.
This increases the opportunities for access to different financing options, improves administration and provides entrepreneurs with a realistic perspective on the development that their project can achieve in a specific period of time.
With this in mind, at Pymes Capital we offer a dynamic and tailored solution, with an easy and fast process and a high approval rate. Visit us and give your business the boost it needs to grow.