Today, there are a number of financial products on the market that target both individuals and businesses. In this article, we will point out some factors to help you select the best line of credit for your business. Read on to learn more.

A fast business loan with bad credit history to you

From the moment the business owner decides that he needs a loan to boost the business, he sees the need to choose a fast business loan with bad credit.

The first step is to know what types of loans are most common in the market and what is the application of each. It is not just a matter of comparing numbers, but of checking the need in which the loan fits – that is, what problem credit will be the solution to. Check out the main demands below.

The wave of fintechs has popularized a credit modality that is expanding with the demand of micro, small and medium enterprises. These are online loans whose purpose is to facilitate mediation between the lender and the customer.

It works as follows: the institution’s website offers a calculator for the business owner to simulate the value of the installments. It then requests documentation – often just the basics, such as CNPJ, proof of address, and a bank statement. Credit approval takes place within a few days and the amount is credited to the company account.

It’s a way to avoid the bureaucracy and high fees of big banks and get the money you need quickly.

Working capital

One of the most common types of corporate loans is credit to finance working capital. We know that a company cannot survive without some degree of liquidity for its daily operations. However, it is not uncommon for this reserve to run out and compromise company activities; In addition, there are purchases that take time to bill, especially those paid on your credit card. When this happens, the entrepreneur may seek a specific line of credit.

The working capital loan should take into account the average accounts payable maturity, the expected receivables inflow, the company’s fixed and variable costs and the minimum inventory required to negotiate with the supplier. Interest on this type of loan varies by institution, whether it is in installments or revolving, whether rates are fixed or fixed, the term and type of collateral offered by the business.

Receivables Anticipation

Credit card purchases have become extremely common in Brazil. According to the Brazilian Association of Credit Card Companies and Services (Abecs), the volume of transactions in this type reached R $ 1.55 trillion in 2018 – almost a quarter of national GDP.

While this means more people consuming, business owners need to consider that every credit card purchase takes 15 to 30 days to fall into the business account. There are also duplicates, checks and booklets.

If your business needs money to pay bills and meet commitments and has future payments receivable, you can request receivables in advance. Credit comes at a lower cost because it carries virtually no risk, but there is a price. Ideally, this solution should be used only when accounts are about to expire and the company is low in liquidity.