Small Business Loan: How to Apply for Working Capital?
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Loading... - paula summer
- 25 Aug 2022
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First of all, each financial institution handles different policies and requirements, so it is necessary that you know them in detail to be very clear about everything that you would be obliged to do when applying for a loan. Although the majority of entities; Whether they are banks, savings banks, finance companies or cooperatives, they have very similar characteristics, such as having an adequate credit profile, you should also evaluate the effective annual cost rate. That is, the interest to be paid.
If the bank, despite having met the requirements, rejected your application, then you should follow these tips and learn about this alternative that could help you qualify for the loan you are looking for.
â— Assess which entity is your best option : As we mentioned, in Peru there are several types of financial institutions, some quite similar in conditions and others, very different. If one rejected you, not necessarily the others will, so the best thing you can do is compare between 3 to 4 companies with different policies, but with the conditions that are close to what you are looking for. Take your precaution, because the average interest rate for microcredits is around 37.57% per year. A number that deserves enough meditation.
â— Was the ability to pay the problem?: Although many entities accept new applications with other terms or different modalities, you must bear in mind that the interest rate may not vary. Moreover, if you evaluate increasing the initial term, then you would be paying more interest over the duration of the contract. Evaluate this scenario well and compare it with other formal business financing entities. Read More…
