A lot of people are looking for a business loan to be able to start a business and start entrepreneurship, but do you know how to plan for it? Getting credit to start working on your own can be positive, but it needs to be carefully and fairly rationally calculated.
Choosing to open something of your own is a gamble, it may or may not work. The fact is that the way you conduct the start of your business helps a lot in ensuring its sustainable future.
Loan to open a business
First of all remember that at Monico we offer online personal loan. That is, the credit is granted to Individuals. It can be used either to start a business, invest more in an existing one or even pay off some debt. The customer decides how to use credit money.
There are different types of credit lines for those who will start a business. For those looking for a micro franchise venture, for example, low interest long term loans are offered. This requires a loan for legal entities.
But if you are really starting a small business, have no collateral and – perhaps – have not even started the business, you can use a personal loan for this purpose. In this type of credit you find affordable interest rates, but it is necessary to search and compare. Remember that it is very important to look at the interest rate, but also the CET (Total Effective Cost). It is the metric that should be used when comparing the offer of different lending institutions.
At Monico it is possible to take personal loan values between $2,500 and $50 thousand, which certainly helps those who are starting a business. Fees vary by credit Annelysis and installment option.
Is starting a business loan a good way out?
Let’s start by understanding what stage of the start of your business you are at. Already have a plan for your company? Have you studied the viability of the business? Getting an idea and taking a loan without first knowing the conditions for your business to work is not a good idea. You will incur a debt and possibly not have the success to repay it.
Now, if your business has already gone through the planning stage and you have studied the feasibility of entrepreneurship, the audience you will reach and are ready to start, the loan can give a push to get it off the ground. Still you should consider the factors we pointed out above to decide which option is right for you.
This type of planning avoids the bankruptcy of the company and the entrepreneur. Care like this prevents you from failing to succeed in business and end up defaulting in the credit market.
A few months ago here at Monico we talked about female entrepreneurship with Anne Pontes, expert in the theme and founder of Radda Emprodora. We put the video below for those who missed the broadcast. Anne brought several tips for those who want to start a business and need credit. This is very relevant information for organizing your finances in the early stages of entrepreneurial life.
Being franchised or having a business of your own?
If you have not decided whether to start your own business or invest your money in an existing franchise, here are some of the advantages and disadvantages of being franchised:
- The franchisee entrepreneur has found a business model that has passed a test and has been approved in other squares. There is brand safety that already exists.
- When several of the franchisors close the same order for a product (since they all use the same), there may be a discount forming an economy of scale.
- The franchisee has cheaper assembly, structure and raw materials from his own supplier.
- When you are a franchisee, there is a monthly payment for the use of the brand.
- It is held hostage to the franchise suppliers purchased.
- There is less autonomy in rules and also in the presentation of products.
- The contract duration is short, which can compromise the profit.
Regardless of your business situation, it’s important to be careful when making decisions that will impact your financial life!
The Monico Corporate Loan can be of help to those who already have an idea, but still don’t have the capital to start. It is very good for those who have a steady job, thus being able to prove income, but want to start entrepreneurship.
Keep reading the contents of our blog to have a healthier financial life.