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
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.
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
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
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.