Running a business without access to fresh capital weakens it and leaves it unprotected against potential crises, such as an economic downturn. But to understand the importance of having funds available, you also have to take into account good news, such as a sudden increase in demand.
Therefore, having healthy accounts is not enough when we have the purpose of growing . And that is when we understand that credit, in the form of debt, is a fundamental tool to take advantage of the opportunities that arise and make any expansion project a reality.
What are the main advantages of accessing a loan? Why a well-managed debt can boost the growth of your company? Here we tell you.
#1. Improves the credit profile of the company
When we have just started a business, it is normal for us to resort to personal credit cards or consumer loans to purchase computers, machines and supplies. But over time, it is best to have a corporate plastic , to start generating a good credit history and to be able to request, when necessary, a loan in the name of the company. It is also recommended to change the ownership of services such as electricity or water in the office to the name of the business , and pay bills on time.
#two. Strengthens the productive cycle
When business is good, and sales increase, we may face problems meeting demand. A typical example is the lack of funds to purchase inputs or new machinery, or to hire more staff. An SME loan, processed on time, will give you access to the necessary resources to strengthen the production cycle and meet customers on time.
#3. Allows you to take advantage of the opportunities that arise
With permanent access to credit we can take advantage of the competition when a good opportunity appears. For example, the sale of machinery with a special discount or the auction of a commercial premises. The recommendation of the experts is not to request a loan at the time it is needed , but to process them in time to have open lines available.
#4. You can reduce the tax burden
A common tax strategy tactic is to advance payments from next year , such as the services of a public relations agency or the purchase of equipment in exchange for a discount. This cost will be considered when making the fiscal closing, and can mean a significant reduction in the payment of VAT or ISR . If you do not have the necessary funds, you can request a loan, always at a convenient rate so that the strategy does not turn out to be more expensive in the end.
#5. Generate benefits through loyalty programs
Finally, before acquiring a corporate credit card, investigate the benefit program it offers, choose the one that best suits the operation and needs of your business. For example, some cards allow you to reduce your balance with points or exchange those points for plane tickets . Always keep in mind the interest rate and the charges for late payments, because they are usually quite high.