A loan can be a great facilitator for a company to increase its productivity and reach more customers. However, credit can also provide times of trouble if obtained in an untimely situation.
Right time to look for resources to invest in their own business
In this second part of the interview with Good Finance, fintech specializing in small business online loans, partners Daniel Orlean and Francisco Ferreira give tips for entrepreneurs choosing the right time to look for resources to invest in their own business. See how it can increase revenue… until the time comes that it is healthy again.
Whether it’s buying a stock, renovating an establishment
“A lot of people try to borrow for the wrong reasons. This is usually useful when you have a revenue in the future, or are pretty sure you’re going to make sales, but you need some money now to be able to make sure they happen, whether it’s buying a stock, renovating an establishment, adopting a new technology… They have companies that spend more than they earn and use the loan to postpone a situation rather than to leverage the business and grow it. That is the difference, ”advises Francisco.
Guidance on the efficiency with which the requesting company
With Good Finance, Daniel explains, it is possible to achieve, even in the face of a credit denial, guidance on the efficiency with which the requesting company is dealing with its resources:
“Within our tool, the situation by which the request is approved or denied is very clear and we can, in the case of a negative, guide this customer. If he is spending more than he collects, he should see why this is happening and not take out a loan. You have to make a cost cut, see how it can increase revenue… until the time comes that it is healthy again.