3 must-see tips for getting a micro business loan!

During economic crises, credit becomes increasingly expensive and scarce, but that should not prevent you from finding a way to invest in improving and growing your business. The micro company loan has been one of the main tools used by managers to combat difficult periods.

However, it is necessary to know the rules and the time to request it. And, to help you with this task, we have listed below three simple and practical tips for making a good loan.

Check out!

Identify the company’s needs

Identify the company

First of all, you need to identify the reason why you need a loan. It may be to invest in technology, process optimization, plant expansion, exploration of new markets, etc.

Knowing the exact reasons will give you a sense of what amount you will need and will make it easier to borrow, since the institutions demand these reasons very well clarified.

Choose the best micro business loan alternative

Choose the best micro business loan alternative

After identifying the main factors that led the company to need a loan, assess the cost of each opportunity to find out what is most worthwhile in order not to compromise the budget in the medium and long term. Ultimately, the loan should help to leverage the potential of the business, not the other way around. See the options below:

Banks

Banks are one of the easiest ways to get a loan. As most of them have a solid structure and greater accumulation of resources compared to other financial institutions, loans can be in larger amounts.

But, as everything has a price, banks charge the highest interest rates on the market, considerably increasing the value of the installments and the settlement time. In addition, the process is very bureaucratic. Therefore, it is only recommended for the most urgent cases.

Financial Institution

Unlike banks, financial institutions offer a lower interest rate, as they compete directly with them. However, the amounts released for loans are smaller and, often, may not be enough to meet the needs of the company.

The process is a little more uncomplicated than in banks, which helps to facilitate the taking of several loans from different financial institutions.

Intermediary

Many people thought that there were only two ways to obtain a loan for microenterprises: through banks and financial institutions. These are the alternatives best known and used by the countryians, yes, but they are not the only ones. Have you heard of intermediaries?

It is an innovative type of loan called “ peer-to-peer ” (from person to person). Through an online platform, you can borrow directly from people who have the money to invest. In addition to being much less bureaucratic, access to money is quick and the interest rates charged are one of the lowest in the market.

Make a business plan

Make a business plan

Regardless of the modality you choose, a good business plan will be vital to obtain a loan. It is through it that the bank, financial institution and / or intermediary will assess the risks and determine the potential that you have to pay the amounts according to the commitment assumed.

Do not forget to include in it the goods that you will make available to settle payments, if you are unable to honor them. Basically, all alternatives require this type of guarantee as a way to protect themselves from high default rates in the country.

Now that you know the alternatives and know how to get a good loan for microenterprise, don’t waste any more time. Get the capital you need today, without bureaucracy and at the lowest rates on the market.

Make a simulation with us right now and be surprised by the conditions facilitated!

3 things you should consider before requesting a loan

Credit can be a powerful tool to achieve your financial goals; from personal loans to acquire goods or services that you cannot pay in cash to mortgage loans or to start a business.

However, without proper planning or analysis, a credit can be very expensive. Whether you apply for a credit card or apply for a personal loan, these are the three most important things you should take into account before doing so:

How much it will cost you, really?

How much it will cost you, really?

One thing is that you request an amount, but another totally different is what you will end up paying. To find out how much a loan will cost you, check the CAT (Total Annual Cost). This number includes the costs and expenses that a credit entails. Take into account that the higher it is, the more expensive the credit will be.

Other factors to take into account are the additional costs, fees and commissions, so that you really know how much the loan will cost you and thus be able to compare or decide whether it is worth borrowing or not. In addition to time. Remember that the longer the term, the more you will pay and of course the most advisable thing is to look for a loan that has the lowest possible cancellation fees, in case you get extra money and want to pay off the capital sooner.

Can you afford it?

Can you afford it?

Do not forget to check your ability to pay to keep everything under control. Calculating your ability to pay is very simple, you just have to subtract all your fixed and variable expenses of the month from your monthly income along with the amount you spend on savings; And what you have left is what you can use to pay a credit or debt month by month.

Some experts suggest that a loan or credit should not exceed 30% of your income to be payable and not leave you in poor financial condition. Because remember that if you fall into arrears, this can affect your credit history and that you can reapply for a loan in the future.

Compare

Compare

Sometimes we think we need a micro loan to get out of an emergency or an additional credit card or to extend the limit of it. However, it is best to buy the different financial products. Nowadays and thanks to the online tools, we have the option of buying the products of different financial institutions to find the one that best suits our needs. You don’t need to marry your bank or an idea, always research and compare.

Finally, before signing any contract or saying “yes”, always remember to ask or review the following:

  • The interest rate especially if it is fixed or varies during the term of the credit.
  • Credit time
  • What costs you must bear when applying for the loan.
  • The initial credit conditions may be modified at some time.
  • A promissory note must be signed or guaranteed.
  • Advance payments can be made to the debt.
  • What happens if you incur default: limits (30, 60 or 90 days) before you are transferred to a collection company; they charge you legal costs, where you make your payment of these fees and how they are distributed in the credit, etc.

We can help you reach your financial goals and objectives easily and safely. Come to us to know more information and request a loan to suit you.

Loans for people with bad records

What happens if you are presented with a golden opportunity such as a last-minute acceptance in a photography course that you have been wishing to do for years but have few funds? What do you do? Do you miss the opportunity?

When you realize that some opportunities are too good to miss, you will try to get a loan at your local bank to cover the costs of the course and the trip. However, due to a small financial problem you had a few years ago with a credit card, your credit is not as favorable and you cannot get a loan from your local bank. Now what? What are your options?

Dilemma

Dilemma

Money can be a powerful tool that opens doors and leads to more opportunities. So, when it comes to seizing opportunities and making things happen, if you have what is commonly known as “bad credit,” how can you make things happen?

How can you do it and get ahead?

An alternative

An alternative

So, do you have the so-called bad credit? No problem. If so, there are options available for short-term loans with bad credit. You may have had difficulties in the past. But do not worry.

Welcome to our lending company; We strive to say yes when other banks or financial institutions say no. We can often grant short-term loans to people with low credit scores.

A new positive start

A new positive start

We understand that borrowing money is more than a financial transaction, it is a relationship based on trust and reliability. At our lending company, everyone is welcome.

If you have a low credit score and need access to money to make this happen quickly, you can be chosen for a loan.

Subject to approval, we can start with the request. If everything goes well and you successfully pay the loan, we can increase the amounts of your loan when you need it.

Applying for a loan with our lending company is easy. Simply visit us and complete an online application. Applications take only a few minutes to complete and once approved, you get the funds in your bank account in a matter of hours!

How to improve your credit score? Find out more here!

One of the ways to obtain loans, financing and credits in stores is through a consultation to the credit protection registries, checking the default rate and other consumer information. Therefore, if you are looking for one of these alternatives, it is essential to know how to improve your credit score.

It is worth saying that a good score may be directly responsible for a loan with a higher value or for the chance of getting better payment terms. This score is nothing more than a way for institutions to check their ability to pay before releasing credit.

Are you interested in the subject? So, continue reading this article and learn how to improve your credit score!

After all, what is credit score?

After all, what is credit score?

The credit score is a scoring system that demonstrates the probability that a consumer will be in default, considering a period of 12 months. The points are based on public information, which has been made available to the database of companies offering credit analysis services.

Because of this, whenever there is a request for a loan, financing, credit and even a credit card, the company analyzes this data to verify whether the granting of credit is viable, in addition to defining the amount that will be made available to the interested party.

The score ranges from 0 to 1,000 and can be divided into three groups:

  • high default risk: 0 to 300 points;
  • medium default risk: 301 to 700 points;
  • low default risk: 701 to 1,000 points.

This score takes into account numerous factors, such as the timely payment of bills, the financial relationship with companies, the existence of negative results and the updating of registration data.

How important is it to keep your credit score high?

How important is it to keep your credit score high?

Keeping the credit score at a high level is important so that you can easily acquire credits, demonstrating to companies that it is safe to make the transaction.

The interpretation of these data tells us that the lower the score, the greater the likelihood that the company will encounter default, presenting losses with the business. We must not forget that interest rates and limits can also be influenced by punctuation.

Therefore, maintaining a high score is synonymous with better credit conditions and easier to close a deal. In other words, maintaining a high score is the same as staying closer to your goals. Think about it!

Before you learn how to improve your credit score, you need to know what your score is, don’t you? From this, it will be possible to understand what your mistakes are and, thus, create ways to improve your expenses.

How to find the score?

How to find the score?

There are some sites that allow consumers to access their credit score, such as Serasa Score and Boa Vista SCPC. On both sites, it is necessary to register and, based on your information (such as paying bills on time, history of negative debts and the frequency of searching for credit), your score is calculated.

As noted, there are numerous factors that can interfere with your final score. The social score, which is the use of information made available on social networks, is an excellent example.

Social score

The social score is a metric used by companies to improve their methodologies, in terms of credit scores. This information is obtained through the personal data that are spread on the internet and that can become useful information.

However, it is necessary to remember that there is a lot of informal work in the country, that is, there are several people who are making money, but without registration in any official government database. In addition, tax evasion also complicates the process, as it is also a case of hiding information.

Thus, some companies are looking for innovative alternatives to overcome these problems. Searching for information on social networks, for example, is an excellent alternative. Information not found in the data can be identified on Instagram or Facebook.

This is called the social score, which is not at all easy to be determined and, mainly, used. However, this type of data is already something that companies are striving to improve the way of searching, analyzing and classifying information.

So, how to improve your credit score?

So, how to improve your credit score?

Surely, you must be thinking, “What should I do to improve my credit score?” It must be remembered that the score is constantly updated, as new data is added to the system.

However, there are some practices that can help you improve your credit score. Look!

Clear your name

Having a negative name, regardless of the credit score, is a synonym for difficulties in obtaining credit. Even after your name is “cleared”, the data maintains its impact for some time.

So, avoid getting your name dirty as much as possible. If the situation has gotten out of hand, try to negotiate debts and find better ways to remedy the debt by clearing your name completely.

Pay bills in advance

The settlement of accounts before maturity shows that you have good financial planning and an efficient control of your budget. Because of this, paying off debts in advance can be a great differential for increasing the score.

On the other hand, delays will be responsible for reducing the score, as they are understood as credit risk.

Keep data up to date

Keeping your data up to date is another factor that directly influences the score. This happens because of the existing reliability in your registration, that is, the accuracy of the registered information.

So, it is essential to check if the data is correct, mainly in the companies that work with the score.

Make the registration positive

Making a positive registration is an excellent way to improve your credit score. By doing this, you authorize information such as the purchase price, the number of installments, the due dates and payment dates to be recorded and provided by the companies.

In this way, by paying the bills on time, you will allow this data to be taken into account when calculating your score, helping to increase your score and, consequently, helping to achieve your goals.

Learning how to improve your credit score and understanding how to use this metric in the market is not a simple task. Throughout this article, we seek to list the main information on the subject, giving you what you need to do to improve your status.

So, did you like our article? What did you think of the information we have listed on how to improve your credit score? Are you interested in the subject? So, learn about 5 tips on how to deal with bad debt. Don’t miss this content!