All business at some point, regardless of the activity you do or the industry in which it develops, you will need some type of financing, but in many cases you are denied due to different situations that represent a financial situation that is not viable to be creditors of said loan. However, this situation may change if you adopt certain habits that help improve the financial performance of your business and the way you manage it.
Follow a financial plan
It is important that you have a financial plan for your small or medium business, as well as that it shows the viability of the business, the expenses that must be met and the expected profits, helps you remember the economic goals that must be achieved throughout its existence. Also included are the investment and financing plans that are necessary to meet those goals and that are guided toward growth. Well in the end, this is a planning that gives meaning and guidance to your entire business.
Have a record of the economic resources
As well as having clear financial goals in the future, you should have a record of the movements of any economic resource that enters and leaves your business. This is essential so that you can demonstrate to financial institutions the flow of money and solvency that your SME has.
You can rely on digital tools that give you a summary of the entire turnover of your business, showing you the income, expenses, payments to suppliers, etc. and that you can consult in real time. One option for this is Kompás, which is also totally free and very easy to use.
Evaluate performance constantly
To complement the previous habit, there is the analysis of those records, because in addition to knowing the exact amount of your income and expenses, it is essential that you analyze in depth the performance they generate. That is, the amount of income you get may not be adequate to support the expenses generated by day-to-day operations and other operations carried within your SME. And by constantly evaluating this information you will be able to realize what needs to be adapted, changed and / or decreased.
Maintain a low level of indebtedness
A study, conducted by Dirosher on credit for small and medium enterprises, shows that 50% of the requests made to financial institutions are rejected because most have a bad credit history; an aspect that has become the main limitation to obtain financing. If your case is a bad score and a high level of indebtedness, the ideal is that you begin to put order in the way in which you pay your different credits or loans (bank cards, departmental, etc.) as well as in keeping your level of indebtedness. You can achieve this by paying on time, first paying off debts that generate more interest and using your cards only for the essentials.
Create strategies that boost growth
As a final practice, for a small or medium business that really has the potential and desire to grow, there is the implementation of strategies. Which is nothing more than taking to action all those ideas of improvement that arise thanks to the previous habits. That is, once you analyze and know the real information of the finances of your business, you can make decisions and thus devise actions. When you implement growth strategies, obtaining financing becomes easier as you demonstrate that your business vision is in the future.
Following these 5 good habits, without doubt you will increase the probability of your small or medium business to obtain financing, but above all they will help you to make better decisions that will make your business prosper and have many successes.