Credits, like university careers, have been increasingly specialized. This can be an advantage when it comes to finding your ideal credit. You must bear in mind that a personal credit is not the same as a loan to start a business or a loan for SMEs. Here’s the difference:

Personal credit

Personal credit

Loans for weddings, vacations, even to buy a car, have the same characteristics for the most part and, for practical purposes, are personal loans. As you may have noticed, they are used for strictly family or personal benefits. Its objective is not to generate more wealth but to acquire some material good or to facilitate a moment of rest for the family. The interest rates and terms that the different financial entities grant are usually similar.

Credit to start a business

Credit to start a business

They are, as the name says, credits to start a business from scratch. They are usually credits for strong amounts of money to buy a place, acquire inventory or put a place with everything your future business needs. The requirements are usually more specific, some institutions even ask you for a business plan. The requirements vary, but you should definitely be in a credit bureau in a positive way.

Credit for SMEs

Credit for SMEs

This type of credit is for people who already have a business and want to grow it. The amounts vary depending on the use you intend to give, can be for inventory, open another branch or remodel. Requirements vary, but usually ask for a good credit history and check the level of your business’s billing. Companies like Konfío have created digital platforms to streamline this process and avoid long lines and folders full of papers in the bank.

Investigate very well the details in each financial institution in order to find the credit that suits you. Interest rates may vary, but this should not be a factor that makes you give up, because there are other variables that you should consider. For example, many small businesses do not have access to bank loans, in Konfío we give loans to small and medium companies so that they can grow their business from today, without having to be immersed in long processes full of uncertainty.