Alternatives of a Bank loan for Business
When making the decision to request financing, perhaps the first thing that comes to your mind is to go to a bank and find out about the offer they can give you. But in reality today there are different alternatives to bank credit for business, because many financial institutions have emerged that also provide loans and are specifically designed for the needs that a company can present.
These financiers are completely reliable and have managed to improve the access that can be had to the credits. Since from the requirements that ask until the opportunity to personalize their offers, they make it easier for people to decide to apply for the loan and also get a yes. Here we will mention more in depth what these entities are, the advantages they have over a bank loan for business and how you could make sure that they are completely safe.
What alternative entities exist to a bank?
The alternative that may interest you to get a credit for your business and that is not a traditional bank specifically, could be a Spaera. That it is a financial entity supervised by the National Securities Banking Commission and the Condusef so that you can make use of its services and be protected as a client.
In Mexico there are different financial entities of this type; in which their business models and granting of credits vary a lot. That is to say, they are companies that offer such financing but that each one has developed innovative models to offer a service totally different from the one that you could receive from the traditional bank. In particular, the Spaera that target the business sector have managed to provide greater and better access to credit for those companies that need money to continue operating and growing.
Advantages they have over a bank loan for business
The advantages that you can obtain as a small or medium business owner when approaching a financial entity of this type are several. To begin the competitiveness that they have created, offers are always better in terms of amounts, rates and terms. Resulting in a variety of options for those who require a loan. If you are going to start looking for this alternative, we recommend that you investigate well the minimum and maximum amount offered, the percentage of interest handled and the deadlines. All according to what you need to do in your business, so you can go discarding until you reach the option that can really help you.
Undoubtedly, one of the great advantages that they have over traditional banking are the requirements that they request in order to be eligible for financing. For the business model that most manages, has been based on facilitating the access that people have to credit. In other words, for a loan traditional banking requests that your business have a minimum of 4 years of operation with annual revenues of more than 5 million. Which for most SMEs is the first limitation followed by the credit bureau score and your history with that bank (if you are a customer). In addition, we must recognize that the objective of clients that a bank serves for business loans are very established and large companies.
The factor “response time” is another advantage, because the process to start applying for a loan with a bank can take up to 2 months while with a more specialized financial institution could be no later than 3 days. For example, there are Spaera that use the use of high technology as a main tool, which speeds up the request and analysis process so that you can obtain an immediate response. And although for many the speed with which they are willing to grant you a loan sounds somewhat distrustful because of the idea you have about financial services, you should not worry.
How to know that they are safe and reliable?
So that you can identify that a financial institution is totally safe and reliable, we make the following recommendations:
Find your regulations
You must make sure that they are really regulated under the Condusef and comply with what this commission establishes. Well, the work of the Condusef is that your rights to the use of financial services, such as applying for a loan or a credit card, are insured. You can enter directly to the web pages of the institutions in which you intend to apply for the credit and in the lower part there must be a statement in which of faith of how it is constituted and by whom it is regulated.
Investigate people’s opinions
You can also search by opinions of people who have already used their services. Either in your social networks, a blog or even on your website. With this you can know if they give a good service, if they really are reliable and recommendations on the procedure or how to follow the process. Although you can find a very varied opinion, analyze based on your perception and needs.
Make sure they have some means to communicate
Another very important aspect is that you find a means of direct communication with the company as a telephone or mail. Well, some Spaera are fintechs and the way you have contact with them is only electronically or a telephone customer service, since they do not have any type of branch or physical establishment more than their corporate offices.
Now that you know there really are alternatives beyond a bank loan for business, you can start investigating the options you have. Remember the security aspects that you must find in each one so that your experience is positive. In Konfío we have the corresponding regulations and we have managed to support more than 100 thousand entrepreneurs and owners of SMEs to boost their businesses.