When choosing a loan for your company, you need to be very careful and make a detailed analysis of its alternatives, considering that the options offered by traditional banks have high rates and the payment term may not be so attractive, making the value high installments and compromising your cash flow.
In addition to the options you already know, which are offered by the most common banks in the financial market, today, it is possible to count on fintechs, which are platforms that mediate the negotiation between the borrower and the investor. Therefore, the bank’s participation is no longer necessary – a fact that helps to make the option more attractive, the rates are usually lower.
Taking this into account, we list the loan options with the lowest rates on the market. This will certainly help you not to make the wrong choice, ensuring the smooth development of your business. Follow!
What are the loan options for your company with the lowest rates on the market?
As we mentioned, currently, fintechs offer the best rate options on the market and, therefore, we have listed three main loans that they offer and that can be advantageous options for your business. Find out how each alternative works.
Collective loan
Also known as crowdfunding, the collective loan has as main objective to help small companies to invest in their growth, launching products, enabling ideas or just organizing finances.
With lower interest rates than those offered by traditional banks – from 1.3% per month – this option has become much more attractive, because in addition to offering the entrepreneur the opportunity to leverage his business, he also does not compromise the company’s cash flow.
In addition, it is possible to request loans from $ 30 thousand to $ 500 thousand, with a term of up to 36 months to repay. But, for that, it is necessary that the annual gross revenue is at least $ 360 thousand and the company needs to have more than one year of operation. Therefore, if the entrepreneur has only a business plan or projections or the company has debts, the loan will not be released.
Impact loan
The impact loan is a credit line for individual micro and small business owners. The amounts of this credit alternative can vary from $ 1,000 to $ 100,000.
To have access to it, the company needs to have an annual gross revenue equal to or less than $ 360 thousand and the rates revolve from 1.3% per month, and can be paid in up to 36 months.
Social loan
Social lending is often an excellent alternative for businesses that do not have as much purchasing power. That’s because it doesn’t require a minimum amount of credit, collateral or years of cash flow documents. The loan amounts can vary from $ 500 to $ 5,000 and the payment term is up to 24 months. And the best: no interest charge!
However, it is important that the company has no financial pending; or just a business plan or projections; or less than 12 months of activity.
What care should be taken?
When taking out a loan, keep in mind that part of your budget will be committed over a period of time. Therefore, it is essential to analyze your current financial situation calmly, in order to see what expenses can be eliminated in order not to acquire a debt greater than you can actually pay.
In addition, it is important to be aware of the Total Effective Cost (CET) of the loan, not just interest. In this way, it is possible to understand what will be paid to the financial institution.
Choosing a loan for your company requires a lot of caution. So be sure to plan your finances so you don’t miss any details.
Are you interested in these loan options? Then, contact us for more details on these credit alternatives.