Thursday, December 9

How to get more out of credits for SMEs

Invest in your business, buy a place, acquire assets to improve the management of the company, optimize cash flow or consolidate commercial debts; These are some of the uses that SME clients can make of the resources available in the banking system for financing small and medium-sized companies.

Entities like Scotiabank, offer a wide variety of credit products to drive viable and feasible business SMEs from different sectors and independent professionals, such as: Term loans, lines of credit, loans or leases for the purchase of cars, machinery and equipment, among others.

At Scotiabank we make available to SMEs Panamanian various financing products, with competitive conditions. The process for applying for credit products is really simple, fast and safe; and the benefits that companies or independent professionals can obtain are many, the key is to know how to use the money, “he said. Francisco Gonz├ílez, Senior Manager of Products and SME Segments at Scotiabank.

The specialist offers six recommendations for SMEs to get more out of the available resources:

Set clear goals. Before applying for a loan, analyze the financial needs of the company based on the business objectives. Ask yourself, what do you need financing for? How much money do you need? and in what term can you pay it? In this way, you will be able to identify the type of credit product that your business requires to make the most of the resources. If you are not clear on the answers to these questions, ask the bank for advice so that an SME executive can guide you through the process.

Match the needs of your business with financial products. There is a wide range of financing products for SMEs. It is important to compare and know the options available. For example, SMEs that offer extended bill collection periods can opt for lines of credit to have more cash flow while they get their money back.

Once you obtain the credit, use the money to fulfill the specific purpose, do not use it for other needs or expenses.

Invest the money in assets or projects that positively impact your business, for example, new machinery to produce more and reduce operating costs, development of new sales channels, work vehicles to increase deliveries, development of new products, technology, human resources. Remember that the objective of investments is to generate higher profits within a certain period.

Use the money to generate savings. If the company has sufficient capital and optimal cash flow, you can request discounts from suppliers in exchange for making cash payments, for example; or improve the prices of inputs for higher purchases.

Also, you can use the resources to consolidate commercial debts, in this way, you can cancel credits with higher interest rates and maintain a single credit to pay a single, lower installment, in the same term and with the same interest rate. This will allow you to have greater liquidity.

Take care of your credit record. Maintaining a good credit history facilitates the approval of new financing.

“Our offer not only includes financing products, at Scotiabank we are concerned about offering personalized advice and a comprehensive service so that our clients can make the most of available resources and meet their development goals,” he concluded. Gonz├ílez.