One of the biggest Difficulties When starting a business is the lack of financial resources. Is it a good idea to make a loan to kick start your plans? At the invitation of GuiaBayment, we at Credits would help you understand how a loan can give you strength when opening a business and especially if it’s a good idea for you.
When Getting A Loan To Invest In A Business Is Worth It
More important than getting a loan to open your business, you first need to make sure that you need to get a credit to put your idea into practice. Many people do not have a clear idea of what they need or do not need to borrow.
The best strategy is to plan your business. Check how profitable it is; analyze the initial demand; research your target audience; talk to potential suppliers; and survey your potential competitors. Remember that if you take out a loan to get your business going without having an idea of profitability in the first few months, you may end up losing your business course even before it gets started. show potential (very critical situation if you are looking for investors for your business).
Also, if you need a lot of time for your business to start making a profit, consider other possibilities such as raising money, seeking partners or investors, or even starting a small business. size and gradually expand. It is even possible that a loan only makes sense for your business in a scenario of structure expansion or operations. That is, only in the future.
Your plan should also consider taking a loan to start a business is valid only when your business allows you to have enough income to maintain the activities and repay the loan installments. A good loan has installments that represent between 20% and 25% of the net profit of the company.
How to choose the best loan
You thought, planned and decided to take out a loan to open your business. The challenge now is to find a credit line that meets your need. Each modality has specific interest rates, conditions, values and rules.
1 . Payroll Loan
Payroll loans are one of the lowest interest rates on the market. Payment is made through installments discounted directly from the person’s paycheck or retirement, making it easier for both the lender and the recipient. In addition to the competitive interest rates, the payroll loan has a 72. month debt repayment term.
The disadvantage of payroll loans is the fact that only pensioners, INSS withdraws, civil servants and employees of private institutions who offer payroll loans can apply for this credit. See the top 5 payroll loan risks and benefits.
2. Personal Loan
The personal loan is one of the least bureaucratic loans at the time of hiring and can be fully contracted online with just a few clicks.
Personal credit is a relatively affordable modality, which may be a good option if you need fast capital. One disadvantage, however, is that your interest rates tend to be higher. But nothing that compares to the revolving credit card or overdraft interest. Because they are structured to reduce credit transaction costs, some online credit options offer much more competitive rates.
3. Using Working Capital as a Loan Factoring
Simply put, factoring is a relatively safe way to receive what you have sold over time. The often business client uses factoring to duplicate the discount process, which is factoring buys duplicate the installment sale and pay the value of the title to the customer.
Factoring is a great option for those who need to buy raw materials often, get a large amount of postdated checks or make big term sales.
4. Guaranteed Loan
Like the payroll loan, the secured loan has one of the lowest interest rates in the market. In this mode you can make a loan with vehicle warranty or guarantee motionless. In other words, you use a personal asset as a guarantee of the repayment of your loan. This causes the risk of the operation to decrease for the financial institution, while also reducing the interest rate of the loan.
In addition to the lower rates, another great advantage of secured loan is the term. In this mode, you have up to 240 months to pay, ie 20 years. The disadvantage is that the applicant necessarily has to have a property or vehicle to be placed as collateral in the credit operation. In addition, you risk losing the good if you are unable to repay the loan.
5. BNDES Card
The BNDES card is a credit type for the purchase of mobile assets for your business and acts as a kind of loan for you to open, expand or reform your business. . However, it can only be used for the purchase of certain types of goods.
A disadvantage is that the BNDES card is provided by banks that take into account a pre – existing relationship with the applicant for credit approval and lending. Still, the modality has rates well below those practiced by the market and a period of up to 48 times for payment.
It is a type of credit that provides opportunities for those who want to start a business but have little money.
Microcredit can be requested by formal (with CNPJ) or informal (non – CNPJ) legal entities as well as for a small home – made cake making venture or a beauty salon at the back of the house. This type of credit is granted by partner financial institutions and has very low interest rates.
A major disadvantage is that the payment period is usually 24 months – it may be short for those starting a business.
To apply for a loan as an individual you will need to present updated personal documents such as ID, CPF, proof of residence and, most importantly, proof of income. In the case of a legal entity, it is necessary to present the CNPJ and the bank details of the legal entity.
Documents accepted as proof of income are payroll (pay stub), income tax return, last 3 or 6 month bank and DECORE for self – employed / businessmen.