Advice for entrepreneurs
The majority of banks offer “boxed” service to smaller companies, which mostly focus on financial efficiency when assessing the loan.
It is important that the accounting report is thorough, as detailed as possible.
1. It is important to know what purpose, what kind of credit is recommended.
It is recommended to use overdraft facility to maintain daily operation or in case of shortages in cash. There is an overdraft facility that can be extended annually. This form of loan is free and has a short maturity.
It is recommended to apply for loan related to investments mainly in case of larger investments. Eg: purchase of real estate, purchase of machinery. In these cases, the purpose of the loan is fixed, the loan needs to be considered more, its application involves more “paperwork”, but the loan costs much less, where a company can save much more.
In addition, it is possible to apply for long-term free use loans. It is advisable to apply for such cases as new software for purchasing, updating programs, etc. The big disadvantage is that it has a much higher interest rate due to higher credit risk.
2. It is a common mistake that companies mistakenly map their financial needs
They turn to their banks too late. Professionals have suggested that they should seek the assistance of financial experts before financial difficulties occur, in order to avoid unpleasant situations. As well as our suggestions, we can be up to date with the financial solutions that are most favorable to us.
Why is Entrepreneurial Loans a Theme?
Over the past year (May to May), the number of companies applying for credit increased by 4.2%, mainly for those whose profile is not for financial activities.
Within loans, the number of loans with longer maturities increased by 5%. (Based on the data of the Bank) According to experts, the corporate credit market will continue to grow during the year.