Financing for small and medium-sized businesses through a working capital loan. Financing is not always easy for SMEs. Especially if you have to buy goods or resources, but your liquidity is not sufficient. A working capital loan can cover your needs exactly and allows you to finance your raw materials or goods. From their proceeds, repayment of the working capital loan is common in medium-sized companies and is usually not a problem.

How can a working capital loan help?

A working capital loan is often only a short-term loan and is mainly used for financing in medium-sized companies. With a working capital loan you finance your current assets, that is, with this loan you can bridge the duration from the time of purchasing the goods until you generate revenue with the products. Often there is not enough liquidity for new raw materials and goods in small and medium-sized businesses to be able to produce new ones. The most common method to avoid this liquidity problem is the working capital loan.

Your advantages:

• A suitable loan is always available to you
• You can finance your orders in advance
• Financial scope
• Reserves in the event of a default
• Fast repayment and immediate use of the loan possible

Who is a working capital loan for?

Small and medium-sized companies in particular use the loan for their financing. The comparison is often made that what is the disposition loan for the private household is the working capital loan for the entrepreneur. The two loans have certain things in common. What has to be considered with the working capital loan is that the interest rates are usually higher than with a normal loan. But this can be cleverly compensated for: if a company pays the suppliers quickly, a cash discount can be claimed, which ultimately does not result in the bill being that high.

The approximate guideline, as is the case with most medium-sized companies, is 14 days. If you repay the loan within two weeks, you can claim a considerable cash discount, in which the somewhat higher interest rates no longer outweigh. Contact our coaches, who are specifically responsible for SME financing and help you plan and execute your working capital loan. Cleverly planned, your company can add great value from the working capital loan.

At Astro Finance you will mainly find sms loan, hence our name, but we also have a good selection of small private loans as well as any bank and loan intermediaries that offer ordinary private loans up to USD 350,000.

Therefore, we think it may make sense to give you a small guide to help you choose the right kind of loan.

When you should choose a sms loan

• If you are only in need of a few thousand dollars, sms loans are your only option since the banks usually require you to borrow at least USD 10,000 or 20,000 when you want to take a private loan with them.
• If you are in need of really fast money, sms loans are also your only choice, because only sms loans are already paid on the same day and in some cases even within 15 – 60 minutes if you have the same bank as the lender.
• If for some reason you need to pay directly to your bank account on the weekend, you must apply for a sms loan as regular private loans are not paid on weekends.
• There are no interest free private loans so if you are looking for an interest free or totally free loan you also need to take a sms loan.
• Sms loans are also a good option for those who do not earn as much, for those who do not have a permanent job and for those who have payment remarks. It is difficult to get a private loan if you have a low salary, lack fixed income and / or have payment remarks.

When to take a private loan

• Private loans are a good choice for those who need to borrow a larger amount of money, maybe around USD 20,000 – 350,000. Most sms lenders do not lend such large sums of money and if they did, your interest expenses would be a little high because the sms concept is based on short loan periods.
• If you are going to buy a car from a private person or a car that is older than 10 years, the car loan with no collateral applies, which is in practice the same as a private loan.
• If you are going to buy a home and cannot afford to pay the down payment yourself, you can cover it with a private loan, you can do the same if you take out a car loan with collateral and cannot afford to pay the car down payment .
• Maybe your current home needs a proper lift. If you do not have a large savings account that you can take money from for the renovation, a private loan is something you should look a little closer at.

Small private loan instead?

Nowadays, there are loans that are smaller than the traditional ones private loans but larger than a sms loan. These loans have a longer repayment period than most sms loans, it can be about 1 – 24 months or 1 – 6 years. So this is a kind of intermediary for sms loans and private loans and such loans can be found here. The nice thing about these small private loans is that:

• They have a lower interest rate than sms loans.
• They are well suited for those who want to borrow a little more a little longer but who may not meet the tough requirements the banks’ private loans have.

The home often runs through a building loan. What needs to be considered in order to fulfill the wish of owning a home? Many who want to fulfill their wish of owning their own home, whether it is their own house or apartment, are never badly advised with a building loan. So that there are no misunderstandings at the beginning: A building loan is often referred to as a mortgage loan or real estate loan. In this respect, you can of course not only build a house with a building loan, it generally serves to fulfill your own home. With a building loan you can convert your existing home, as well as of course finance the purchase of a house or apartment. Thus, the building loan serves as an aid to fulfilling the home.

The term of a construction loan

A significant feature of the construction loan is that it has a very long term. In general, loans taken out to finance your home are long-term loans that often go beyond ten years. Rather, a building loan with a term of ten years would be very short; terms of up to 30 years are common in this sector. These long-term loans also lower interest rates a lot more than ordinary loans, because if you calculate what the bottom line would be at a normal interest rate over 30 years, these types of loans would be completely unprofitable and you would end up in a financial emergency, in which, in the worst case, the house is foreclosed to ensure repayment.

The type of repayment on the building loan

A construction loan can be understood as different variants of a loan. The mortgage loan is usually understood as such in the form of an annuity loan. This primarily means the way to repay the loan. This is how the annuity loan is repaid by repaying the loan in monthly installments. The amount of these installments is made up of a repayment component in which the loan is repaid and an interest component that pays the interest.

In addition to the final loan, the annuity loan is one of the most common methods of repayment. As the name of the final loan suggests, the amount to be paid is only due at the end of the term – but in full. It is important to know that the amount you pay at the end of the term is only the current loan amount that you received. The interest portion is paid in advance in monthly installments. As a borrower, you therefore only have a small charge before the term of the loan ends.

The thing about equity

The building loan from a building society can also be called a building loan, which you get under a building society contract. MoneyAccess7 Bank also offers loans to finance your own home. MoneyAccess7 grants promotional loans to help you buy real estate. In a construction project, the question of equity is always the focus: How much should you be able to show as an equity ratio yourself? Is it necessary at all? The answer is yes.

It is only advisable to bring in as much equity as possible in the construction project. It is necessary because many of the not grant a building loan without a certain equity ratio. Or they finance only a certain percentage of the purchase price, the rest has to be paid by the buyer himself. In addition, you do yourself a great favor if you put as much equity as possible into the financing of your home. The loan amounts of construction loans are often very high, so you should also note the repayment that this is still affordable. The more equity you bring into the financing, the lower the credit rate and the interest charge.

The overdraft facility is extremely expensive – you get the same flexibility with a credit facility, only cheaper. When opening an account, the bank gives you some leeway to overdraw the account, the credit line. As is known, you can overdraw your account up to this agreed credit line and keep it in the debit. If you overdraw your account, you are already taking out a loan from the bank, the overdraft facility. Of course, the overdraft facility has the clear advantage that it is very flexible and you can get money at short notice if the liquidity is not as good as you would like it to be. The overdraft facility may have a clear advantage for bridging, but it also has a major disadvantage: it is pretty much the most expensive loan that a private customer can take out.

Overdraft facility: flexible but expensive.

The overdraft facility is known to pay high interest. Even in phases in which the interest rate is lower, up to 13 percent of interest may be due if the credit line is exhausted. The question remains whether the high interest rate means that you won’t pay more sooner than you could have done with a normal installment loan. The terms of the installment loans are a lot cheaper than overdrawing the account, and yet many choose an overdraft facility, although an installment loan would not be a problem for them.

Even if you have already used the overdraft facility, we strongly advise you to reschedule an installment loan in order to avoid the high interest rates for the most part. There is also an alternative to the overdraft facility and the installment facility: the framework facility. The credit line is probably not very well known to many. You could say a bit flat that the framework loan is a kind of mixture of overdraft and installment loan, whereby the interest is not nearly as high as with the overdraft facility.

The alternative to the overdraft facility: the credit facility.

The terms of the credit line include a line of credit for the customer, similar to the overdraft facility. You can, but do not have to fully use this agreed credit line – it is up to you how much money you want to raise. This makes the difference to the installment loan clear: the installment loan always pays out the amount that is available to you. The credit line is different here: If you have been granted a credit line for a certain amount, you can vary the amount flexibly. You can have the entire amount paid out at once or use only part of it. Repayment is just as flexible, but a minimum repayment is often agreed with the bank when the loan framework is granted.

The flexibility of the credit line

This minimum repayment means that you, as a borrower, have to repay a certain amount each month – this can be, for example, five percent of the remaining debt. This real flexibility is also evident here again. If you have a credit line for your framework loan of 10,000 dollars and you have fully exhausted it, you can of course not take up another framework loan. However, if you have already paid back 3,000 dollars out of the 10,000 dollars, you can access the 3,000 dollars you have already paid in at any time. Only when the framework is fully utilized can no further framework credit be taken out.

Taking a corporate loan can feel frustrating. Of course, there is a lot to think about when taking out a loan for your company.

• Is it the right time for an investment?
• Do I dare to take this step in my company’s growth journey?
• Will I be able to pay back?

There are many questions and at least as many answers. It is only useful and a sign of health to ask many questions and analyze the state of the company and your finances. As is well known, there are many holes to put money into to solve their problems, such as paying taxes and fees, supplier invoices and other things needed to keep you afloat. Something you often forget is that there are an incredible number of opportunities and good opportunities for growth. You might need to invest a little extra in inventory before the high season, turn up the marketing a bit or build that really nice outdoor dining area to attract guests during the summer?

We believe in transparency and transparency. If you are open with the status of the company and what you are going to use the loan for, then we can more easily determine what loan amount and maturity you should have.

Think about this when you take out a loan for your business

1. What do I need the loan for?

Should it fill that famous black hole of spending or is it for an investment in your growth? The more we have our feet around the need, the better decision we can make. Decisions that ultimately serve to benefit you and your business.

2. Do I really need to borrow the full amount?

Many people see a price tag or a sum and apply for the full amount. But just because something costs USD 100,000 does not mean that you have to borrow the full amount. You may have equity of $ 30,000? Then we can match it and pay out USD 70,000 for you to reduce the amortization, the monthly fee and not unnecessarily burden your finances. At SwingCredit, we want you to borrow responsibly.

3. What does it look like in 3, 6, 9 or 12 months?

Depending on what maturity you have chosen or just what period of time in your mind you intend to keep the loan, you should have a repayment plan. If you have taken the loan for six months, you should also be able to repay the entire amount until then. In the end, being late with their payments only affects yourself in the form of any unnecessary reminder fees and, at worst, collection claims. Be realistic and don’t invest in high risk projects or things. Want to see your own UC score or company credit report? With the help of credit reporting companies such as UC or Creditsafe, you can find out your own credit rating and look up suppliers and customers.

Now let’s say you have taken out a corporate loan with us or elsewhere. Should problems arise in the form of unexpected expenses or lost revenue – contact you! It is much easier to change a repayment plan if the lender has information on their feet. So do not put your head in the sand but contact you if you have difficulty sticking to the payment plan.

SwingCredit are positive

We are basically positive about most things. We love you small businesses and the impact and impact you have on our society. 4 out of 5 jobs are created by you and you get the community going. We are entrepreneurs ourselves and understand what challenges you have and that sometimes a temporary addition of liquidity may be needed to cope with low or high seasons, invest in equipment, inventories, staff, marketing or to pay taxes and fees.

The usefulness of a credit card. A credit card is usually reserved for the better earning. It is also one of the most common means of payment, both online and in-store, especially when larger payments are due. Some things, like a flight ticket booked online, can only be paid for with a credit card. However, paying for online orders by credit card also has a clear advantage in everyday matters: the speed of delivery. Since payment is made directly, shipping can also take place immediately. Nevertheless, it is understandable if you do not want to buy a “normal” credit card, but there is an ingenious alternative here: the prepaid credit card.

What is a prepaid credit card?

You actually know the term prepaid (“prepaid”) from the cell phones, where you could top up your credit and then spend it. Exactly this principle has been transferred to the credit card and there is already the prepaid credit card. You can top up the Predpaid credit card as well as the mobile phone with credit, which can then be used up. The principle protects against over-indebtedness and if you don’t need a normal credit card all the time, these prepaid credit card models are the most advantageous.

What are the differences to a normal credit card?

In the case of a so-called postpaid credit card, ie a “normal” credit card, there is a credit line on it that is not available for a prepaid credit card. With a prepaid credit card, only the credit that has been loaded by the user can be used. The prepaid credit card is also often searched under the term credit record-free credit card – this already says that there is no credit record information or credit check for a prepaid credit card. With a “normal” credit card, however, yes. There is also a significant difference that everyone can get a prepaid credit card, including students, in the case of ALG II, in the event of personal bankruptcy or an affidavit.

What are the similarities?

With both credit cards, whether postpaid or prepaid, cashless payments can be made worldwide and money can also be withdrawn from ATMs. The functionality of a prepaid credit card is basically the same as that of a “normal” one. You can also shop online, book flights or use other services. With the prepaid credit card, debits that have been made incorrectly can be posted back.

Hey, you there. Yourself, who has been denied your loan application and thinks you have no alternative to go out of the red or make a dream come true. Pay attention, as we will give you some valuable tips to learn how to increase your chances of getting approved first!

Well, the first step to increasing your chances is to plan yourself.

Spending planning can be done on a simple Excel table, in a notebook, or in a book on financial education, such as Kakebo. However, it is important that you record all your expenses, whether they are fixed or not. For a better organization, some still indicate the separation of these into categories such as: culture, outings, food and drink, household expenses, etc. This will allow you to better observe the outflow of your money. As well as the amount of money spent on superfluous goods or unnecessary activities. Once that is done, conscious consumption will naturally be faced by you, which will save you money.

The second step is to pay the bills on time.

This is a tip that seems obvious, but it is not! Do you know when you have that little money in your hand and you don’t know if you pay the phone bill or go out with your friends to take that church? Well, I have some bad news: always give preference to accounts. The tour you leave for the following month or combine a free ride. This is because when applying for credit, financial institutions will analyze your banking history. It is through this analysis that you can verify that you are a good payer. Therefore, a good option for the forgotten is to put some accounts into automatic debit.

The third point to increase your chances: keep the name clean.

Again, this point is essential for credit review and approval by financial institutions. This is because the client whose name is clear generates reliability. Now, tell me, who wants to lend money to those who are reputed to be underpaid? I think we already know the answer, right? And with banks and finance is no different. Of course, some companies work with loans for people with the dirty name. However, usually, interest rates are much higher, to ensure the receipt even if the customer does not quite owe the debt.

And here’s the fourth tip: Signing up can help you get credit lines.

This is the case of those who are autonomous, for example, and who cannot prove their own income. From this, you will be able to prove to the bank or lender with whom you want to make a deal that you have a certain amount of income as well as that you pay your bills on time.

In addition, the fifth point concerns bank movement. It’s important that you keep your account moving, that is, deposit money with it, withdraw it, make purchases on your card, etc. Thus, by analyzing your profile, financial institutions will be able to better understand your financial life as well as your purchasing power and can approve your credit application more easily.

If you have old debts, here’s the sixth tip: negotiate with your lender and do everything you can.

However, during the process, it is important that you do not fret over the possibility of getting out of the red. Think rationally, do not math and commit more than 20% of your monthly income to repay debts.

Anyway, checking your score score and making it high are central actions for anyone who wants to apply for a credit. You can do this on trusted CPF consultation sites, such as www.boavistaservicos.com.br.

If you’re a little lost and don’t know what this score is, check out our article that explains everything about it here. But in a nutshell, it is a score ranging from 0 to 1000, and is assigned to all consumers. It exposes to the market the chance of the person paying their bills over a period of one year. This way, the higher your score, the higher the reliability you give banks and, consequently, the higher the chances of getting a loan!