What to consider before hiring a loan for your business

Considering some factors and making good assessments is essential to understand if it is the right time to accept financing and which is the best option.


It is very important to remember that when we talk about credit, whatever the amount, it is necessary to be aware of the best conditions, the real needs of your business, and the reality of the payment plan – that is, how you can pay for the installments.

After all, relying on a loan so that it becomes just another debt to be paid off is to end up with another headache. And we know that no entrepreneur wants that, especially when deciding on investment to see their company grow and develop. Therefore, there are several important factors to consider before requesting or accepting a credit proposal. Doing so can bring you all the security you need to have the best opportunities.


What to consider before hiring credit for your business?

Before even thinking about a specific amount and payment plan to hire a credit for your business, you need to answer an important question: what do you need the money for? That is, when you have access to the value, how will you use it. The options are diverse:

arrow2 Increase inventory: if you are close to an important date for your segment, for example, you need inventory to sell more. Often, financing can be essential for this purpose, preparing your store for the demands that will come.


arrow2 Buying machinery: Perhaps your operation is in need of more tools to be able to serve customers even better. They can be computers, labeling machines or other machinery. They can also be the target of a credit contract.


arrow2Renovating or opening a new store: when it comes to expanding, especially in a physical store, renovations and new units are part of the options and also end up being part of an investment plan.


arrow2Entering the digital world: Expansion doesn’t have to be just in the physical world, but can involve the digital. Create an online store, invest in sales through social networks. All of this can be part of your business plans.


arrow2Invest in marketing: Your funding can also add an investment in marketing and advertising, making more people aware of the products and services you offer.

arrow2Hiring employees: Another possible purpose for accepting a PJ credit is to hire new employees, which helps to increase production and improve customer service.

With clarity about how you are going to use the loan money, the next step is to know how much you need to achieve your goals. For this, it is very important to have planning and follow some steps:


arrow2Set a goal: With the purpose of your investment in mind, list everything you need to make it real, thus setting a clear goal.


arrow2Estimate the costs: The second step is to estimate the costs. You already know what you need, what steps to take to reach your goal. Now it’s just a case of estimating the costs of all this.


arrow2Make a simulation of how much you can pay: you already know what you are going to do with the money, you have a clear goal and you know how much the total project will cost. The time has come to turn your eyes to the current reality of your business and understand how much you have to pay the installments.

arrow2Ask for several proposals: with the information on how much money you need and how much you can pay for the installments, it’s time to ask for loan proposals and analyze them.


With all this information, you are better prepared to seek and hire financing for your business.


How to evaluate a credit offer?

With the destination, the value of the money and the payment plan well defined and clear, the proposals arrive and you have to choose which one best fits the reality of your business. And that involves considering other important factors:


arrow2Interest rate (TNA): This is one of the first pieces of information we usually have access to when it comes to a credit offer. After all, this amount is being borrowed at what interest rate? The Annual Nominal Rate (TNA) refers to the additional amounts involved in financing throughout the year.

arrow2Total Financial Cost (CFT): but this is far from the only cost involved in a loan. The Total Financial Cost (CFT) involves the insurance values ​​and administrative expenses of withdrawal and acceptance. It should also be considered when choosing your offer.

arrow2Clear information: Finally, it is very important to choose a bank or financial institution that offers clear information about the credit offered, such as the rates already mentioned and also the terms and installments.

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