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?
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
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
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.