Starting a business requires capital, which in many cases can be difficult to obtain. Hence, one of the first tasks of entrepreneurs is to identify the available financing sources to choose the one that best suits their financial capacity and the needs of the project. However, to apply for a bank loan, the evaluation of credit history is a determining factor.

Thinking about this, the importance of having a good credit history will be analyzed below to aspire to different types of financing and what are the options available to SMEs when they have not yet begun to build it.


Importance of having a good credit history

The credit history of a natural or legal person begins to be built the moment they access credit.

This record is a report of credit behavior during the term of the financing, which documents the punctuality, delay or non-compliance of payments.

Subsequently, this information is verified by banks or other financial entities to decide if the person or company requesting it is eligible for credit.

This history is managed by the Credit Information Companies (SIC), whose purpose is the “collection, management, delivery and sending of information related to the credit history of individuals and legal entities.”

Therefore, before requesting any financing for SMEs, it is important to review the qualification that the company or individual has in the Credit Bureau or Circle, in order to estimate the feasibility of having your credit application approved.


Types of financing

Among the various sources of financing for SMEs, the following stand out:


1. Bank credit

This is the most traditional instrument and, therefore, the one that usually presents the most requirements. In addition, it is advisable to compare several products, considering aspects such as the interest rate, total annual cost (CAT), commissions, terms and guarantees.


2. Venture capital funds

They are provided by investors who analyze the viability of the projects and can grant them the necessary capital if they are sufficiently innovative, if an adequate internal rate of return is estimated.


3. Angel investors

They are experienced entrepreneurs who, in addition to providing capital to projects with potential, add value through knowledge during the early stages of the project, offering entrepreneurs advice and support in various ways.


4. Government financing

Nacional Financiera (Nafin) is a Mexican development bank that works in collaboration with commercial banks to provide financing to new businesses. These loans are characterized by offering favorable conditions and terms for ventures in the industrial, commercial or services sector.


Is it possible to access financing for SMEs without having built a good credit history?

The answer is yes. There are financial instruments on the market specifically designed to compensate for the lack of a solid credit history. Two of them are online loans and Merchant Cash Advance (MCA) financing, which works as a loan that is repaid through a percentage of future sales that the business may have.

At Pymes Capital we can offer you online loans through MCA so you have the opportunity to grow your business. This, based on an application process with easy-to-meet requirements and a very fast response time compared to other alternatives.