Financing for companies can be found in many forms, and among the influencing factors is the term in which it will be used, which will depend on the goals you have and the ability to pay, among other elements.
The financing of companies in Mexico is relevant because a large number of businesses disappear due to lack of liquidity, which is why it becomes key to know about the credit and loan options that companies have at their disposal to remain operational.
Financing and convenient terms
To meet short, medium and long-term goals, financing must be appropriate, because if not chosen well, it may be insufficient to achieve set objectives, or it may mean unsustainable debt for the venture, being counterproductive for its economy.
That is why below you will find the characteristics that the deadlines imply, so that you can anticipate and learn a little more about business financing in Mexico.
Long term
It is a financial product in which the period for the money to be returned is usually longer than one year, and can reach and even exceed 5 years.
Credits or loans designed for the long term are regularly used for large projects, ranging from the opening of a business, to its expansion, the purchase of real estate or large investments in machinery.
Among its advantages are:
- Financing amounts may be higher.
- Sometimes it is possible to renegotiate the terms.
- They allow you to give a greater boost to your credit history.
- They have a high level of customization.
On the part of the disadvantages:
- Your requirements may be many and complex.
- Approval times are longer.
- They have higher interest rates.
- They can cause instability in finances.
Short term
In credits or loans of this type, the return of the capital is equivalent to one year or a shorter period, and they are aimed at being financing products that allow you to have the economic resources in a faster period, with the purpose of solving liquidity problems.
The advantages it offers are:
- Simpler applications and lower requirements.
- Generally, a guarantee is not necessary.
- Access to this type of financing is faster.
- They allow access to many small or medium-sized businesses.
The disadvantage it has is:
It may not provide enough capital for large projects.
Online loans: the flexible term option
Although the division is commonly short or long term, there is an alternative that can be handled in one way or another, and this is that of MCA online loans.
The MCA or cash advance, shows flexibility in the amounts that can be obtained, in the case of Pymes Capital, you can be financed from the average income of the last 3 months, and up to $1,000,000, thus adapting to various short-term goals. , medium and long term.
The return of the capital depends on the sales that your company achieves, thus making the payment period adjustable to the development and growth of the business itself, without rushing, and with the possibility of liquidating it quickly if the dynamics of the business allow it. your entrepreneurship.
With Pymes Capital, don’t stress about forced deadlines, and make your project grow at its own pace with fast and easy-to-request financing.