Your company, like most companies in Mexico, will need financing at some point.
This financing could be intended to be used as working capital, to purchase inventory or simply to keep your company’s operations running.
A bank loan for your business
A popular option is to apply for a bank loan for your business. However, you might run into 2 of the most popular reasons why your bank credit was not approved:
You do not have a constant and clear source of income
When requesting a loan, the bank asks you to share a series of documents to review. Among them may be the company’s balance sheet, financial statements, etc.
When your bank reviews these financial documents, it has a question in mind. Is this company going to be able to pay off the loan? If the bank believes the answer is “no,” your credit will be rejected.
What will you do with the money?
The bank does not understand what you want the money for.
Not knowing where you are going to invest the capital of your business loan is a bad sign, even when there is no bank involved. Applying for a loan for SMEs can help you grow your business, but it is important to be clear about where you are going to invest it.
Is there a faster option to get a business loan?
Even when your business is safe from those two points above, the procedures for bank loans can be delayed and take several weeks for your credit to be approved.
Another option to apply for your business loan may be through a financial one. The approval time varies, but they can approve your credit in less than a week.