MonthApril 2019

Problems when financing your incorrectly

In Mexico, almost 99% of the businesses that exist are considered SMEs (small and medium enterprises). But something interesting about these, is that in order to grow they need financing.

Commonly entrepreneurs and owners of SMEs finance their businesses with personal loans. This leads them to generate debts or enlarge those they already have.

The most common problems that exist when financing your projects with personal credit are the following:

Inadequate amount

Loan amount,money

The amount that a credit card can offer you is not enough for what your SME requires. Your business needs a bigger credit. For example, if you have a restaurant and you are about to expand, the costs range from permits to interior design and you would need to use more than one card.

High interests

interests rate,loan,money

Credit cards are designed for personal purchases that you can end up paying in a shorter term, but offer very high interest rates. That’s how you can get to over-indebtedness since you’ll be paying up to 50% more interest.

Your credit history and score are essential when requesting financing. This is information that occupies the institutions to be able to grant you a loan.


Online loans for SMEs are designed to help you strengthen your business. Through the way they analyze your information, offers are made that can benefit your projects. Payments are defined with your business’ billing and credit history.

And if you have a positive experience and your business is achieving more goals, you may be able to be creditor to better offers with larger amounts.

If you have financed your business with personal loans, today there is a possibility that you can transfer your debts to business loans.

At Konfío we have developed a product that concentrates all your debts into one, free your credit lines and improve your credit bureau. Financing for business is especially designed for them, resorting to the right credit.

Tips for using financing for business

Currently there are financing for businesses with many qualities that will benefit your business. Remember that you can use this financing for different things that allow you to progress and grow your business.

The following tips will help you to correctly use your financing for business:




Use financing primarily to invest. Try not to use the money only in expenses. Find a way for the money you invest to help your business grow. There are many ways to invest your credit money

Do not fall behind


Always keep a healthy financial image. It is very important that you pay on time so that you do not generate more expenses. Always pay on time and in this way you will get better credit opportunities in the future.

The right time


Identify the best time to request it, take your time to analyze the status of your business. The best time to request financing is when your company really needs it and it will serve as a tool to meet the objectives.

Do not become indebted


If you are in a period in which you have many expenses, the wisest decision is that you do not acquire a new debt. Always remember to measure your payment possibilities. It is not good that you accumulate expenses that in the end could bring you many financial problems.

Choose the right one



Find the loan that suits your business. Do not go for the first option you find. Always analyze in depth all the credit options for businesses and choose the one that covers the needs you have for your business.

These tips will help you use business financing in a better way. Make an informed decision and encourage yourself to use a credit for your business. Do not forget that in Konfío we offer you credits that adapt to the size of your business. We use technology so you can apply online, and thus support the growth of your business.