Loans for Indebted – Non-bank Loans Market | Debt Consolidation

Non-bank loans market

Non-bank loans market

Until recently, on-line payday companies offered their clients fast loans of a certain amount for a maximum period of up to 30 days. However, a new one has recently been born, one must admit that a very interesting trend according to which more and more Gigabanks offer their clients the possibility of taking out a long-term loan and an installment loan without BIK. Some companies even began to meet the expectations of customers in such a way that they not only offer the first loan completely and 100% for free, but also give the possibility of repayment in two installments. For example, if we borrow PLN 1,000 for the first time, we pay PLN 500 after 30 days, and another 500 PLN after the next 30 days. This is a novelty on the market of quick loans. Of course, the requirement that we must meet to pay off the second installment of the loan after 60 days is the payment of the first installment in advance. If we do not do it, we will have to pay the full time and immediately. It is also an excellent solution for indebted people.

Loans offered by Gigabanks are also available on the market, which are more like traditional bank loans than on-line loans. We can repay them in a dozen or several dozen months. In addition, the parabank calculates exactly monthly installments for us. And what if we repay such a loan online? Depending on our lender, of course, but most often the interest for the remaining time is deducted from the total loan amount. The solution is therefore very beneficial. Without checking in the debtors’ databases, that is, a loan for indebted people can enlist each of us!

As it results from the above and what is clearly visible, Gigabanks thanks to their huge popularity and constantly growing demand for services and products from clients, expand their activity almost from month to month and offer us an increasing range of products and services without BIK and for indebted people. Many of them are also able to advise in the selection of the most advantageous product. However, one thing is unchanged – no parabank will ask us about the purpose for which we make a financial commitment, which is unheard of in the case of traditional bank loans. Also, the lack of formalities and the speed of granting financing, even in a few minutes, speak for a short while, not a traditional bank loan.

The fast loans market is growing dynamically, and we as consumers have more products to choose from. Also, the multiplicity of existing companies dealing professionally with providing payday loans and indebtedness loans makes the offers of individual companies very competitive and extremely beneficial.

How Should you Prepare to Apply for an SME Loan?

If you are determined to improve your business and have made the decision to help you with financing. A good tip to apply for an SME loan is to be prepared. Well before, you should know what they ask and how the whole process works so that you use time effectively and on your behalf.

Commonly financial institutions share very basic and important requirements with respect to a business. These are not only to verify that there is a valid registration before the law but also to evaluate how viable it can be to grant you money. That is to say, although the final decision of the offer made by the institutions depends in a certain way on your compliance with each one of them. In the end also the capacity of payment that your business generates and the level of debt that you have up to this moment are decisive.

# 1 To fill out an application

# 1 To fill out an application

Every institution that offers loans, be it a traditional bank or an online financial one, asks you to fill out an application in which you must share basic information such as your name, your SME’s and the reason why you are requesting the loan. Here it is good to mention that depending on the institution and the way they handle their services, this last requirement is taken into account in a different way. For some institutions it is only information without influencing the final decision, but for others, “what are you requesting the loan for” is a determining factor.

For example, some banks request the business plan of your SME to analyze the feasibility of borrowing money, but in addition to this they also request another plan in which details in detail and how you will use the amount that will be lent . This gives an indication that depending on whether the project will generate a beneficial change to your business, in terms of money, they will answer yes. Here, our recommendation is that you investigate more thoroughly if this is a requirement requested by the institution you wish to ask for, so that you can assemble those documents with time and conscience.

# 2 To present documents that validate your business and your identity

# 2 To present documents that validate your business and your identity

In addition to giving basic information such as your name, your business and your location to request an SME loan, you must provide records that support this information. As they are proofs of address, official identification and the RFC (Federal Register of Taxpayers) with which you issue invoices in your SME. The latter is to verify that you meet your obligations before the Tax Administration System and that there is also a legal record of your business before the Government.

If you still do not have an RFC and you are not registered with the SAT, we recommend that you think about formalizing your small or medium business. Any institution that offers loans and is reliable requires this to be able to validate that their transactions follow the legal statutes established by the country. In addition to not only provide you with the benefit of obtaining financing but you open up the opportunities to get larger clients, managing to boost your business towards a promising future.

# 3 To provide documents on the financial status of your business

# 3 To provide documents on the financial status of your business

Another requirement that banks or financial institutions have in common is that they present documents that support the financial status of your SME. For example, a traditional bank will ask for at least the last 12 statements of account, all your annual and partial returns and your credit bureau. A financial online will probably only ask for your password from the SAT to see the level of billing that your business has and will review your credit bureau, in order to make the process faster and easier.

As you can tell, you need to know how much your income business generates and how much your level of debt and expenses is. Well, that gives a real idea of ​​the viability of borrowing money and being able to pay it. For example, your billing shows as the flow of money in your company, while the credit bureau shows your behavior with other loans and the debts you still have. Remember that it is not bad to belong to the bureau but to have a bad history; which you can improve by creating a payment plan to liquidate past due balances and manage to pay on time.

How is the proccess?

How is the proccess?

The process between each bank and financial institution also varies, and although it is simple, time is important. Well after applying for your credit, the time of analysis of all the information to arrive at a final offer is different. While with traditional banking you can get an answer until after 15 days a fintech gives it to you immediately. As you see, it is important to take into account when you need the money and to whom you ask.

After you have a final offer and decide to accept it, follow the legal formality. That is nothing more than signing the contract in which the amount, interest and time to settle is established. And once you sign it, it only remains to continue with your project and give the correct use to your financing.

Now that you know how to prepare for an SME loan, you can go ahead to get everything they ask and in the end the process is efficient and agile. As a last recommendation, we can tell you to investigate more thoroughly all the institutions that can offer financing, so that you can choose the best option for both your ability to pay and your business.

Liquidate Debts and Invest at the Same Time

We know that most of the time the financial situation is the reason why a business can go wrong, because not all of us have very good skills on this subject, in addition to the fact that entrepreneurship is full of many challenges. And although recovering your business is not an easy or immediate process, you can really achieve it by obtaining a loan that gives you the possibility to settle your debts and still be able to invest to generate better results that will help your business to stand. .

Well today besides the credits that are specifically for small or medium-sized companies, there is the opportunity for financial institutions to offer you the refinancing of your business correctly and help you liquidate the past due balances that you have. That is to say, if you have obtained money from personal credits so that your business works you can settle them thanks to this new financial product that has been created.

How to settle debts?

How to settle debts?

The process of transferring your debts to business credit works in the following way:

First you are given an offer or amount based on what you need to settle and the billing generated by your business. This in order to really get the money you need to settle and another part so that you invest in recovering your business without putting your financial health more at risk. In addition you would also be releasing your lines of credit and worrying about a single debt that would be this new credit.

How and in what to invest?

How and in what to invest?

To start investing with the objective of recovering your business, it is important that you evaluate every aspect of your company in order to be even more clear about what is having problems in order to perform well and what is still working. From here, the strategies in which you can invest your new financing will start, knowing that it will be worth it and that they will practically be good results.

Next we will give you some strategies in which most of the owners of SMEs that have applied for a loan to improve their business (SME credit report) have invested and that may work perfectly for you:

# 1 Purchase inventory

# 1 Purchase inventory

Many times a good flow of money comes from the hand of always having what customers demand and the ease with which we cover those needs. Investing in having a bigger and better inventory will make a good diversification in what you can offer and above all that the clients will notice that. In other words, they will see your company as the best option to turn to and the most efficient. But if your guild is different from the commercial one, you can invest in your raw material inventory to be able to generate more volume and cover market demand. Without a doubt, this will present another possibility to attract new clients and recover your business.

# 2 Invest in machinery and equipment

# 2 Invest in machinery and equipment

Another good way to invest, ensuring a better performance in a company, is acquiring new machinery or equipment that will make your processes better. Well nowadays the importance of a business before consumers lies in quality and speed. For example, you may need to carry out projects that have a very short time delivery. If you get the necessary and correct tools you can fulfill so that the client has a very good experience and recommends you.

# 3 Open new sales channels

# 3 Open new sales channels

Opening new sales channels without a doubt is a strategy that will increase the income generated by your business. And this can not only help you financially but also the scope of your company. You can reach even more publics and attract new ones. Whether you decide to start by opening an online store, you really need a lower investment or open a new store, you will see that the results are immediate. We recommend that you evaluate the potential market that exists according to the industry to which you are dedicated and the strengths that you have before the competition.

How can you realize, recover your business is possible, you just need to assess where you are and where you want to evolve to make a decision. And if you are really determined to settle your debts and invest, in Konfío you can find the opportunity, because Koncentra has been designed precisely for this. We also recommend that you investigate thoroughly which institution is the best for you and your business in order to recover the stability of your finances.

Meet the Requirements to Apply for a Loan

Deciding to ask for a loan is the first step for your company to achieve momentum and growth. But many entrepreneurs or owners of SMEs fail to obtain it because they do not meet all the requirements to apply for a business loan.

70% of the entrepreneurs who participated in our SME Credit Report, mention that access to financing is very limited. However, part of this percentage does not meet all the requirements that most financial institutions request to evaluate if it is feasible to grant a loan.

That is why you need to be aware of what is required by financial institutions and know how to achieve each of the requirements to apply for the loan that will help your company to continue its course.

What do they apply for for a business loan?

What do they apply for for a business loan?

Most financial institutions have certain very basic requirements, which you will realize that maybe you already have them.

General information

General information

One of them is that they will ask you for essential information about your company and you, in order to corroborate that you have the power to make legal decisions about the business. This indicates that you must provide both your official identification and the incorporation of your company and proof of address for both. Well, the more information there is about the legality of your business, the more likely it is that your application will be relevant.

Reports of the performance of your business

Reports of the performance of your business

Similarly, you must provide financial data such as income and expenses generated by your SME, because through these calculate the ability to pay you have. In order to determine how much is the maximum that can offer and that both this offer is viable for you and for those who are lending.

Consult your credit bureau

Consult your credit bureau

A consultation is also made to your credit bureau, since it is to be able to define the risk that exists when lending you money. Through this one you can observe the behavior with credits that you have obtained previously and the level of debt that you have generated up to this moment.

As you can tell, they are not so difficult to obtain. Although if you resort to some other institutions, such as traditional banking, there may be other additional requirements such as a guarantee.

Aval

 

Usually they tend to ask for a guarantee, be it a person who agrees to support your debt or a property that has enough value. Well, it’s like having a guarantee so that in the end the institutions can secure their capital. This establishes greater responsibility for those who apply for the loan and, above all, it may be one of the requirements that limit access to financing.

How can I meet each requirement?

How can I meet each requirement?

Fulfilling the requirements to apply for a business loan is nothing special, and much less difficult, since it is very likely that you already have that information in hand, you must simply identify where to collect it.

General information

General information

The identification they request to verify your identity can be your IFE or INE. While for proof of address may be some receipt of basic services you use, such as electricity, water, etc. The constitutive act of the business is obtained at the moment in which you register it in a legal way before a notary, your business activity, it is really the fact that your business is formalized.

Income and expenses

Income and expenses

These are delivered in a detailed manner, with all those expenses and income that although they seem minimal, are important to demonstrate the financial performance of your SME. You can go to your accountant so he can provide you with this information or do it yourself.

Credit bureau

Credit bureau

You must have a favorable credit bureau to increase the chances of your credit being approved. For institutions, you just have to sign the permit to have it reviewed. But if you do not have a credit history yet, it’s time to start creating it, you can start with a credit card or direct certain payments to your bank account.

Now that you know what are the requirements to apply for a business loan and that the processes are very different in each institution. It is recommended that you research and compare all the offers that exist in the market. As an additional tip, in Konfío we only request official identification, constitutive minutes and the invoicing of your business, with only those three data we can make you an offer immediately.

How to Apply for a Loan if I am a Moral Person?

If you registered your company as a Moral Person, this post is for you. A Moral Person is a group that unites with a determined purpose, be it a mercantile society or a civil association.

At Konfío we have created a specific process for businesses registered as Moral Person. With this we transform the process when requesting a credit for your company and reduce the time to give you a quick response. This process can take up to two months in traditional financial institutions and with us it is reduced to days.

Making a request for Moral Personnel is a little different from the process of Physical Person with Business Activity. When you start your application, you will be asked to choose one.

Here we explain some differences and steps that you should follow:

Business name

Business name

Unlike the request of a Physical Person with Business Activity, in the Moral Person request we will ask you the business name of your business. Remember that the name and brand are different, the first is the legal name of the application and the second is the name with which it is known commercially.

Shareholder information

Shareholder information

When making your request as a Moral Person it will be necessary that you enter the data of the shareholders. With 70% it will be enough to process the application, remember that everything is online and you will not have to visit a branch to deliver the information. We will ask you to answer three questions in order to check your personal credit bureau.

Credit Bureau of the company

Credit Bureau of the company

We will review the credit bureau of your business to offer you better conditions, such as lower interest rates and higher amounts. With this the contract will go out in the name of your company and you can generate credit history of your business. To consult the Credit Bureau of your business, the signature of the legal representative will be necessary.

The documentation that we will ask you is also different. When applying for a credit as a legal entity, you must have the following documentation at hand:

  • Proof of address for all shareholders
  • Constitutive Act
  • Tax identification card
  • Proof of business address
  • Bank account statement

The documentation is loaded directly on the platform so you do not have to waste time.

Once your credit is approved we will take your contract to be signed by the legal representative and the obligor in solidarity. After this your money will be deposited in any bank account in less than 12 hours.

Applying for a loan as a Moral Person is very simple. Start your application and boost the growth of your business.

How to Identify Fraudulent Sredits

Before choosing credits for companies it is important that you be careful and choose calmly. Take your time, look for different options and make sure your company is in the best moment for financing. Below we share some tips that will help you make the best decision and avoid possible fraud.

To avoid fraud, the first thing you have to do is:

To avoid fraud, the first thing you have to do is:

# 1 Compare different credit options for companies

Do not go for the first one you find without first checking other options. Remember that the most “attractive” offers are the ones that can be deceptive.

# 2 Check what they say about the financial institution in social networks

The image of the company must be reflected in its official site. As Konfío has a presence on Facebook, Twitter and Instagram. Take into account that social networks are updated and check that you have good opinions from other customers.

# 3 Make sure it’s regulated

Before applying for credits for companies, check their certifications and regulations. Consarten, through the Spliar portal, provides corporate and general information on financial institutions. This way you can ensure the veracity of the information presented by the institution. When searching, remember that the commercial name is not always with which they are registered before Consarten.

# 4 Know the contact information

Check that the office of the institution is not clandestine. If the option you are interested in is online, check if the lender company has an address with offices.

The indicators that will tell you if a credit is fraudulent

The indicators that will tell you if a credit is fraudulent

# 1 They do not check your credit history

The companies that dedicate to grant credits for companies necessarily are going to investigate your credit history. With this they will be able to corroborate that you are really going to be able to pay your credit. In Konfío we evaluate your credit bureau to offer you better conditions in your SME loan.

# 2 It charges you money before knowing if your credit will be granted

The moment you ask for money without even asking for your information, you can begin to suspect that something is not right. The lenders do not have to ask for an initial deposit without having approved your credit application

# 3 They do not ask for your business information

If they only ask for your name and give you an account number to make the deposits there, surely it is not a serious institution. To carry out the loan process the company needs some requirements to do everything legally.

We, for example, ask you for some information such as: official identification, proof of address and your RFC.

Take care of the credits for fraudulent companies, do not be fooled and take all the previous precautions to protect the money of your business. If you are looking for business loans remember that Konfío is a good online credit option.

How to Choose a Loan in the First Year of your Business

Finding financing for your business during its first year of operations can be the engine that helps you drive it. However, there are different factors that you must take into account so that the credit becomes your ally. Several of the big companies that you know were consolidated in the beginning thanks to small loans.

Jerry Illumin, Zev Soco and Gordon Joker, founding partners of the Starbucks chain, started operations investing $ 1,350 each; shortly after they obtained a loan for $ 5,000 to acquire different coffee beans and diversify. Today they are the largest coffee company in the world and open a store every day.

Sam Walton, the founder of Walmart, applied for a loan to a relative to invest in his first store. When purchasing it, it focused its efforts to offer lower prices to its customers and managed to reduce the costs of its suppliers, achieving a 45% increase in sales during the first year. Currently with more than 2 million employees, it is one of the largest corporations in the world.

What do these big companies have in common? They used the credit for their benefit and implemented a clear strategy to grow their businesses. Before applying for a loan that helps you improve the productivity of your business, we recommend you take these 3 aspects into account.

1. Detect your business cycle

1. Detect your business cycle

The stages that a business lives are birth, development, growth and sustainability. Be clear at what point you are will help you create a focused strategy to achieve success at each stage. The time each one lasts depends on each business and how you accelerate its growth.

2. Determine what and how much you need

2. Determine what and how much you need

Make a financial plan and calculate how much money you need and how you will invest it. If you want your business to be sustainable and not suffer from debt, be realistic. In the end it is money that you will have to pay at some point. I advise you that the strategy focuses on making your product stand out from the competition and generate value for the client.

3. Evaluate your options

3. Evaluate your options

Know the types of financing that exist and choose taking into account different factors such as the interest rate, the term and the documentation you need. Choose a loan that you can liquidate by analyzing the ability to pay for your business.

Remember that by making credit history on behalf of your business, you can have access to better rates and longer terms.

 

 

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