It is recommended to take care of your credit history, choose a credit that suits your business needs, save interest by asking for short-term loans, among others.
Is being indebted bad? The answer is no. The formal financial system is an excellent ally of entrepreneurs who want to progress. Therefore, within the framework of the call for registration of the Citi Award for Micro enterprise 2016; Learn and Citibank of Peru recommend that if you want to get a no guarantor credit for your business to grow it is necessary to follow these tips so you can ask for it and take advantage of it successfully.
Look for a trusted financial institution.
First you must look for an entity that suits your business profile. Different micro enterprise lenders (banks, financiers, savings banks, cooperatives and supervised NGOs) offer a variety of financing alternatives. Remember to work only with formal entities. A micro enterprise entrepreneur who earns from S /. 30 per day may already be subject to a credit of between S /. 1,000 and S /. 3,000 soles.
2. Take care of your credit history.
There are many people who want to get a loan for their business but are not in their prime to take on more financial obligations. When there is a financial oversupply in the market, the entrepreneurs end up in debt on our credit cards or other credits . That is why financial institutions deny them financing for their business. We recommend not to accumulate personal debts and, if they have them, that their fees do not represent more than 30% of your monthly income.
3. Choose a credit that suits your business needs.
Micro-enterprises have the possibility of accessing a credit for working capital which is different from a consumer loan. Micro-enterprises can pay it in monthly installments or in a single direct quota toward the end of the borrowing period. For example, there are single-campaign campaign credits. That is why, in the face of the upcoming Christmas campaign, we recommend that micro-enterprises borrow a loan in September or October within 90 days to be paid with the profits generated by the campaign.
4. Choose the cheapest credit
Before several offers of credit for your business full of terms like TEA, TCEA, value, among others we will give you a very simple formula to choose the credit that suits you. When comparing one or more financing alternatives in the same period opts for the one that gives you the lowest quota.