Online loans focused on small and medium-sized businesses are a fast and effective solution for many of today’s business needs.

However, not in all cases the financing sources offer an immediate response and what is key: not all the alternatives ask for the same requirements, so those interested must carefully analyze the conditions and assess the commitments they will be acquiring in if the requested business financing is approved.


When is it time to consider business financing?

Whether you are seeking business expansion, acquiring new assets, covering fixed expenses, moving forward with the operation in times of crisis, or diversifying the company’s offer, having financial support as soon as possible can be decisive.


Importance of knowing and analyzing financing sources

As a recap, here are some of the common ways start-up businesses get resources:

  • Crowdfunding: The project is advertised on a digital platform and is financed by a group of like-minded people. In addition to financing, your advantage is the promotion you receive.
  • Seed capital: It is a sum of efforts by experienced investors. This support usually includes advice and some guidance for business growth.
  • Business incubators: They are organizations that support entrepreneurs with resources, infrastructure and knowledge during the early stages of their project.
  • Banking institutions: They represent the most traditional financing option for SMEs, offering products for companies of different sizes and with specific needs. However, the list of requirements to obtain them may be longer.

The importance of knowing these sources and their conditions also lies in being able to consider an alternative in case the credit application is rejected.

Among the factors that explain why many companies cannot access bank loans or do not prefer not to request them, are high interest rates, long approval periods, excessive requirements and procedures, and the lack of financial inclusion.


What you need to know before seeking financing for SMEs

Before reviewing the online loan offer, it is important to evaluate the following aspects:


1. Diagnosis of the financial situation

Identifying the right moment to request financing will depend on the situation of the company and its ability to pay. To do this, the ideal is to review the financial statements and analyze the conditions that are feasible to accept.


2. Justification of the loan

Being clear to which areas of the company the resources will be allocated is the beginning of good administration and can set the tone for choosing a source oriented towards the business growth that is being sought.

It is not the same to request a loan to acquire or lease a real estate asset, than to purchase equipment or pay a debt.


3. Loan amount

A next step to avoid getting into debt is to define an amount that covers the detected needs and not request a larger amount that could make it difficult to manage.


4. Cybersecurity measures

Applying for an online loan is a practical and uncomplicated solution if the grantor is an institution endorsed by the National Commission for the Protection and Defense of Users of Financial Services (Condusef) and the relevant cybersecurity measures are taken.


5. Care of credit history

Once an instrument of this type is accessed, it is essential to monitor compliance with payments and the relationship with suppliers. The foregoing, with the objective of maintaining a good credit history and simplifying the obtaining of new financing in the future.


With Pymes Capital you can grow your business through Merchant Cash Advance (MCA) financing, which works as a cash advance from your future sales. In addition, it can be adapted to the needs of your business and can be obtained quickly and very easily.