Starting or expanding a business comes with a number of financial challenges that often require a significant capital investment. In this context, it is inevitable to face the dilemma of whether to request external financing or not. Do you want to know what financing would mean for your business?
5 keys to the importance of financing for your business
According to data from the Bank of Mexico, Mexican companies trust the different sources of financing that exist in the country, where 59.4% of those surveyed indicated that they used financing from suppliers, 28.9% used credit from commercial banks, while the percentage The remainder indicated having used some financing through other entities, such as foreign banks and debt issuance.
Whether the venture is in its early stages or is already expanding, business financing plays a crucial role as shown in the following points:
1. Improve productivity
With different sources of financing, such as online credit, business productivity can be increased, since it is possible to invest resources in technologies, employee training or the opening of new branches and operational centers, which increases operational efficiency and , ultimately, production.
2. Invest in strategies
The strategies in a company are essential if it seeks to grow and remain competing within the market. Thus, an online loan is ideal for financing the research, development and implementation of strategies such as marketing and advertising to promote and market the business effectively, which in turn can increase sales income.
Some additional strategies in which it is important to invest are commercial, innovation, sales, customer loyalty and financial strategies, which, if put into practice, could be the impetus for the prosperity of the business.
3. Stabilize cash flow
By having access to financing for your business, you can better manage your cash flows during times of low demand and then pay off debt once income increases again, thus avoiding liquidity problems and ensuring continuity of operations.
This is vital considering that lack of liquidity is the reason why more than 30% of Mexican SMEs go bankrupt, since with financing companies can adapt to economic conditions and changing market trends.
4. Take advantage of strategic opportunities
Having financing available allows you to take advantage of opportunities such as discounts for volume purchases from suppliers, which can increase profit margins in the final marketing of your product or service.
This injection of capital is also necessary if you have to fulfill large customer orders, which not only ensures the sale, but also the financing that will be used strategically.
5. Financing for expanding businesses
Without a doubt, expansion into new markets, the acquisition of assets or the expansion of production capacity are very valid reasons to seek financing for your business. It is only important to find a scheme that fits the needs, deadlines or objectives of the company.
Pymes Capital and the ideal financing for your company
At Pymes Capital we understand that financing can play a fundamental role for your business goals, therefore, we have loan options through MCA financing (Merchant Cash Advance) or cash advance, where through a simple and quick evaluation you can obtain financing, depending on the average sales income of your venture. Fill out the following form and grow your business!