Monthly Archive: March 2019

Difference Between a Loan for Business and Staff

 

With the existence of different types of credits we can economically face certain needs that arise. But in addition to personal credits there is a type of credit for business. This has been created specifically to be able to help owners of small and medium enterprises.

But maybe you wonder: What really makes them different? Many entrepreneurs choose to use personal loans to finance their business projects and continue to pay for their expenses.

Purpose for which they have been created

Purpose for which they have been created

The main difference is that each one has been created or designed for different purposes. The personal credits can help you for some unforeseen familiar or to acquire some product of relatively high cost. For example, you have had an accident and you need to cover the hospital bill. You can use a credit card to pay the bill.

While a business credit, it is intended to help cover very high cost projects. Well, SMEs or businesses are managed based on a capital that allows to grow the value of the company. Here, an example may be that you have achieved a production order that exceeds your monetary capabilities. A financing for business can help you to solve the expense so that you can achieve more money.

Requirements

Requirements

Another difference is the requirements you need at the time of requesting either of them. For a personal one, it is essential to have a good credit history, open a bank account with the same institution, proof of income as well as address and official identification. And logically go to the branch and wait your turn.

To apply for a credit for online business you only need the RFC with which you make the invoices of your SME, an official identification and documents of your business to scan.

Amounts, terms and interests

Amounts, terms and interests

According to the purpose of each one, the amount they can offer you is totally different. If what you want to do is grow your business, an amount from a personal credit can be very limited. On the other hand, one for business can offer you an estimated amount according to the size of your company and what you want to do with it.

In terms of interest and terms, since personal loans are for minor expenses, the institutions estimate a short term to liquidate. With high interest according to the risk they calculate when lending you the money according to your credit bureau.

Advantages of using the right one

Advantages of using the right one

Now that you know what the differences between these two types of credit are, you can decide to use the right one. A business needs to have the capabilities provided by a loan specially designed for it. Well, when you submit an offer, they identify the needs and they adapt to your SME as well as to the project you wish to carry out.

Always thinking about the possibility that you manage to boost your business and at the same time liquidate your credit. In addition to that it is possible that you obtain certain benefits to be handling properly the loan depending on the institution.

But do not worry if until now you have financed your SME incorrectly. Today there is the possibility of obtaining financing for a business that liquidates your personal debts that have been generated. Konncentra, is a product that we have launched so you can transfer all those outstanding balances that your business generated.

Are Online Credits Secure?

The wave of Financial Technology companies that have been created in recent years in Mexico and Latam, have revolutionized the processes and financial tools we knew. For this reason, it is very possible that as a user you ask yourself how reliable and secure the credits are online and the answer depends on the financial institution where you request it.

The number of Saera (Multiple Purpose Financial Companies) that exist so far in the country, constitute 5.6% of the credit market. That’s why Before applying for a credit online, I recommend that you take into account the following points to avoid and detect fraudulent companies.

Validate the reliability of the institution

Validate the reliability of the institution

The institutions that offer online loans are also regulated. Come to the Conseaq or the National Banking and Securities Commission and verify the legality of the company. Sometimes it will not appear with the trade name but with the company name, do not be scared! For example in Konfío you can find us as a Red Friend DAL. Another way in which you can validate the company is knowing the opinion of other clients who requested a loan.

Check the privacy policy

Check the privacy policy

The online process allows Financial Technology companies to accelerate the online credit process and offer personalized amounts and terms. When filling out an application it will be necessary to enter personal or business information. Quiet! If the financial is regulated, your data will be protected. It does not hurt to review the privacy policy to know how your data will be treated and the rights you are granting to the financial institution. You can find this commonly on their website or in the contract that will be given to you.

Make sure you have a contact form

Make sure you have a contact form

Although the procedure is 100% online, it is good that you know the address or telephone number of the institution. If you have questions or modifications about your credit, you can go directly to the company. At Konfío we have advisors who will help you solve all your doubts during the online credit process. In the same way you can investigate if in addition to an email or telephone they have social networks, since nowadays they have become a new channel of direct communication.

Do not make deposits in advance

Do not make deposits in advance

Asking you for money before credit is approved online is a bad sign, no financial company should ask you for advances. There are usually commissions at the time of requesting a credit, both in the traditional way and online credit. For example, the commission for opening, which covers administrative, management and IT costs necessary to provide a loan.

These tips will help you when applying for secure online credits. Do not be fooled and take some security measures.