Modalities of Loans for SMEs – Business Loans

Loans for SMEs have been able to provide help to solve most of the financial needs that a business presents. On the one hand they have been designed under terms that allow institutions to make an adequate offer, and on the other, business owners receive enough to continue operations in their companies.

However, there is a great difference between them, and it is the way in which they can be obtained, the modalities that exist when requesting it. Well, from the process that takes to make an application, the time you require for it and the way you end up getting the money, can vary depending on how you decide, because today loans for SMEs are available in different forms.

Next we will tell you what are these modalities in which you can request one and its main features and benefits, so that you can choose the one that best suits you and suits the needs of your business.

Traditional

Traditional

The first is traditional, where you have the opportunity to approach the bank you want, visit a physical branch, investigate and then start applying for your credit. This has been the most common and even bureaucratic way, in which a person can request a loan, because really the process is the longest that exists. Since the process is very rigorous and request information and paperwork that likewise requires enough time for you to get it.

Process:

Visit branch, complete application, return and submit paperwork, wait for the review of the procedure and receive a response.

Response time:

21 days or more

On-line

On-line

The second option you have is to request it through the online mode. In which today there are different financial institutions that have transformed the way in which loans and financing are offered for SMEs, where the whole process is online and through its platforms. Here the ease of the procedure and the immediate response are the greatest advantages. Since they use technology as their biggest ally to meet the needs of applicants taking into account the volatility of a business and what it requires.

Process:

Fill out an application online, receive an answer, accept an offer.

Response time:

10 minutes

Which is the best option?

Which is the best option?

If the need of your business is to obtain money for capital immediately, and that allows you to give guidelines to continue your operations, the ideal is to opt for online mode. Since in it you can find in the first instance the ease of the process, sharing only essential data to analyze the viability and terms under which your offer will be made and secondly the response time and obtaining the credit is very short.

Also, at this point it is good to go into that, due to the lack of access that exists in the traditional way, that is, the one offered by banks, the other financial institutions have had a greater opportunity to improve the offers they make. As the amounts, interest rates and terms, are more competitive, thus giving the adequate and sufficient help that an SME needs.

Make a comparison of the loans for SMEs that you find, so that you can choose the financial institution, mode and offer that best suits you, but above all, that is the one that really helps you.

You can use tools such as loan simulators for this comparison and thus know better the offers that exist and that in the end you make a good decision.