Categories
Money

How to increase revenue by borrowing credit the right way?

Whether as working capital to leverage the business or as an alternative to repay small debts, it is common that, at some point, a company managers see the need to increase revenue by applying for a loan. Among so many doubts that may arise at this time, one of the most common is: how to get credit in the right way for my company?

Contrary to what many entrepreneurs think, not always the loan is something negative. When done right, with planning and organization, it can contribute to raising the institution’s revenue in a healthy and sustainable way.

To know the answer to the question we asked in the first paragraph, keep following this post and check out our tips and guidelines that will help your company prepare to apply for a loan in the right way.

Does your business need a loan?

Does your business need a loan?

The first step is to know if your business really is in need of a loan and if the same is feasible for the reality in which you find yourself. For example, for a company that is already heavily indebted, borrowing to pay off debt can turn everything into a snowball, further aggravating the situation and compromising your financial health.

The ideal is to respect your possibilities for the moment, taking into account a well-structured financial planning.

When is the right time to apply for a loan?

We have already talked here on our blog about the best time to make a loan . When done at the wrong time, it can disrupt the entire financial structure of your business and generate many problems.

Therefore, well defined goal, well-planned planning and organization of cash flow are some of the points that should be considered before choosing to make or not to apply for a loan.

Organizing Your Cash Flow

Having an organized cash flow represents a greater control over the financial movement of your company. Revenues, accounts receivable, expenses, income, valuation or devaluation of investments and any other entry or exit of money must be included in this registry.

However, to be effective, you need to keep your cash flow current. Here are 5 tips that will help you with this:

Set a control period

Daily, weekly, fortnightly or monthly. You need to determine the period of monitoring of your cash flow according to your company’s demand. The point is that this interval is not too long. So you do not run the risk of losing control.

Make a survey of your fixed expenses

Make a survey of your fixed expenses

By listing all your company’s monthly fixed expenses, you can determine which minimum billing you need to keep your business running.

Record accounts payable and accounts receivable

Make a forecast that includes your accounts payable as well as your accounts receivable. In this way, in addition to the current consolidated balance, it is possible to determine the future balance provisioned.

Separate your income and expenses by categories

Separate your income and expenses by categories

Consumer accounts, internet, inputs, services, employee pay, among others. In addition to identifying different colors – for example, blue for recipes and red for expenses – another tip is to sort them by categories.

Plan for the short term

Having all of the records listed and visible, you can have greater control over your finances and thus carry out more effective planning that encourages the performance of your company.

How to arrange to apply for the loan

Knowing that the loan is the best option and with your cash flow on schedule, it’s time to analyze the credit possibilities. Reflect on everything that will come with it – installments, interest, deadlines – and choose the option that works best for your current reality. Research well, have a critical eye, and compare the alternatives.

Remember to take into account the activities and size of your company. This is because the agencies can offer special conditions according to their segment.

Online loans simplify and debure bureaucracy for corporate credit

A very efficient alternative to simplify and reduce bureaucracy the credit contraction are fintechs .

When compared to traditional loans – those made directly to banks – online loans present many facilities for your company. Understand what they are:

  • Everything from the internet: from the offer request to the signing of the contract, EVERYTHING is done online through your mobile phone, tablet or computer. You save time, money and do not need to move to the bank;
  • Transparency: when doing a simulation you are already informed about all rates, interest, value of the parcels and Total Effective Cost (CET);
  • Lower fees: As everything is done over the internet, consequently, operating costs are lower. There is also no charge of any advanced value;
  • More agility: with less bureaucracy, your credit request is answered quickly and you receive the requested money in less time.

So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.

Categories
Loans

Digital marketplace that provides loans and investment opportunities for private individuals

Brocc is a digital marketplace that provides loans and investment opportunities for private individuals. It is possible both to apply for unsecured loans from SEK 10,000 up to SEK 350,000 for a term of 6 months up to 10 years, and that you can invest as a private individual, self-employed or organization and thereby lend their own money to the customers. The modernized kind of loans between private individuals is also called P2P . The advantage is that there is no intermediary in the same way as the bank and thereby reduces the costs for both parties. It is also you yourself who choose how you want to invest your investment / loan depending on how your finances look.

Brocc, private loans SEK 10,000 – SEK 350,000:

  • Borrow or invest to Swedish private individuals
  • Clear conditions and longer prices
  • Only fixed rate
  • Loan protection for private loans

Brocc provides a very safe and flexible service that is based on the customers’ terms. Instead of having the bank draw interest and associated costs for holding an account or card, you save a lot through a P2P opportunity.
You can halve the cost of a loan if you choose to collect your current debt through a collective loan. Brocc also offers loan protection that comes into effect on illness or unemployment, which ensures the economy for all parties. For those who want to invest, both regular and one-time investments are allowed.

Invest capital with preferential interest

You always lend out the invested money to at least 40 people, which gives a maximum of 2.5% of your equity per loan. Spreading the money in this way reduces the risk of being governed by another person’s repayment ability. Brocc manages all the administrative work for you, this also includes the collection of payments from the borrowers, after which you do not have to spend more time than necessary on the investments.

You own the loan units altogether and can change your investment choices at any time and switch between reinvesting, “interest-paying” or “paying out”, which you can easily do by logging on ‘On my pages’. If desired, it is also possible to have more than one account with different investment profiles. When your invested money is not lent, they are separated on a client media account at Handelsbanken.

Start investing / Apply for a loan

Start investing / Apply for a loan via Brocc

Applying for a loan takes no more than 2 minutes and takes place directly on the website. Fill in the information requested in the form and verify by logging in with BankID. It is possible to have a co-applicant, which generally increases the chances of becoming an approved application amount.

For those who want to invest, fill in a separate form on the page. Click in if it is a company or private person and then create an account with Brocc. The whole process goes fast and takes place online.

Payment and credit check

Payment and credit check

Brocc takes a credit report via the UC center and makes an individual assessment of all applicants. Only you with good creditworthiness, stable income and no payment remarks are approved a loan. When applying for a loan online, a preliminary answer is given within a few minutes, in order to ensure that the credit report is approved and that the loan can be paid out, however, one has to wait for a confirmation email. From signing (and supplemented with any ID documents) and accepting the agreement, it takes 1-2 banking days until the money is in the bank account.

‣ No credit report is taken on the person who wants to invest, instead you need to answer some control questions when creating an account. Subsequently, a PEP-control (Person in political position) is also made when separate rules apply to investment.
For those who want to invest it is also required that they are a customer of a Swedish bank.

Interest and costs

Interest and any costs may vary slightly depending on how creditworthy you are. Ongoing loans, employment and ownership weigh in together with the desired loan amount and maturity. Interest rate spreads are between 3.25 – 24.99%, the loan is an annuity loan, which means that you pay a fixed amount every month via direct debit. Instead, investors pay a service charge of 1.8% covering all administrative work (2% if you wish to sell). The application for a loan via Brocc is free and non-binding.