Getting credit is a great opportunity for your business, but the key to your experience being positive is in the management you give it. It is important that you have a plan to keep both your credit and your business under control. Well with that you will achieve the goals that you have proposed from the moment you decided to apply.
Why is it important to maintain control of your credit?
It is important that the control focuses both financially and on results. When you know perfectly well what you will use the credit in your business, it is easier for you to allocate the exact amount for each action or strategy you proposed. And to take care of the most financial part, you can devise a payment plan in which you have contemplated the income and expenses in order to always count on the payment of your credit. All this is in order that you manage to pay in a timely manner avoiding generating late interest and bad credit history.
How to balance the management of your business with your credit?
Maintaining a balance is not as difficult as you think. Just focus on managing your credit payments without losing sight of your SME’s earnings growing. In the end you should visualize the credits as allies of your business, because they really are a form of investment. Measure the results that have the areas to which you are investing part of the credit and so you can have more clear what are the strengths of your company so you can make the most of them.
Plan for strategy
You need to have a plan that keeps you under the objective of complying with the strategy for which you applied for the loan. Well, according to our SME Credit Report, 70% of companies do not achieve their goals because they do not complete or follow their strategic plan. To do so, you must first have a budget established for each action to be carried out, consider everything. That is, if you need to buy material or install a new electric current so that the machine you buy will work, everything is relevant. Then write down who or who will complement the new changes or improvements, so that you are aware of what is required. And finally remember to measure. Whether your company has performance standards or not, you should always see if these really are beneficial.
In this plan you must include both the income and expenses of your business. In order to devise strategies that you can implement to reduce expenses and increase profits. This also includes all your debts, either with credits that you have requested or delayed invoices from suppliers, etc. In a separate list write down both those that are of a high value and those that generate more interest. This way you will know which one to liquidate first, with that you will improve both your credit history and your level of debt.
There are completely digital tools that allow you to monitor the financial management of your business and its performance. You can support yourself in order to have up-to-date information on how much income and expenses your SME has had throughout the month. This will facilitate your calculations and above all, they will be more exact.
In Konfío we are interested in having a totally positive and beneficial experience for the growth of your SME, that is why we have created Kompás that can show you all the finances of your business. With it you can see your sales, operating costs, profit margin, etc. And the best part is that it is completely free and also allows you to review your credit history so that you can continue with your good financial planning.
Another benefit that we offer is that if you have a credit with us, in your profile we show all the behavior of your financing. That is, how much you have paid, your next payment dates and how much you are saving in interest.