26 Jul The positive effect of the credit bureau
The main positive effect that the credit bureau has on a small or medium business is that it can help boost its growth. Well, by generating active information about your financial behaviors, you are more likely to get better offers in terms of credit.
Recall that the credit bureau is just an institution that collects accurate information about the loans you have requested. It is not bad to belong there. In fact, we all get to be in Buró at the moment we acquire a credit card, a departmental or a mortgage loan, among others.
But if you have not managed to have good control over your finances, you may get a bad score. Paying on time and using your loans moderately will make you have a good image before financial institutions.
Here we mention in broad strokes the effect on your SME to be present in credit Bureau:
Create credit history
To ask for any financing or loan, the credit history is one of the requirements that you request. Well, as we mentioned before, you need to see the movement of your credits and the way you carry your finances. Every institution evaluates the form of payment. That is, if you fall behind in paying your monthly payment, raising your level of debt due to interest or if you are very punctual.
If you start to properly finance your business you may be starting to generate a credit history. Or if you have already started, a good way to improve your track record is to create a payment plan according to your SME’s ability to pay. Which you can improve if you have a real vision of what your income and expenses are.
Support your company
Another benefit of your company being in the Bureau is that you get a backup. Well, if you are already generating information this can be added so that anyone who wants to lend or invest feels confident. It is very important that your company is legally established and has reliable records of its existence. This in order that the institution has to consideration more positive points to approve your credit.
You get good opportunities
The way in which you will be able to boost your business, thanks to your bureau, is that the opportunity to have a credit is greater. But not only that, they can offer you very good financial products. Well, according to your behavior is the possibility of obtaining: larger amounts, low interest rates and adequate terms. Even if at some point you want to refinance or ask for an equal increase it is very likely to be approved.
In order to better understand the value of having financial health for your business, we have made a study about credit. In it we discovered that 50% of requests for financing in traditional banking are rejected due to a poor record. While in Konfío only 30%, thus creating unlimited access to SME owners to boost their business.