Archive 2019

What Does It Mean To Be In A Credit Bureau? | Entrepreneur Finances

What is it and what does it mean to be in the Credit Bureau?

What is the credit bureau?

 What is the credit bureau?

The Credit Bureau is a private company that collects information from banks and financial institutions that grant any type of loan. All this information is stored in a record in the name of the person who has been the subject of credits. From the moment you apply for a loan of any kind you are already in credit bureau. Being in the bureau does not mean that you have not paid something, it simply reflects your credit activity.

What does it mean to be in a credit bureau?

 What does it mean to be in a credit bureau?

Being in a credit bureau is not always bad. If you have ever applied for any mortgage, automotive or personal credit, your information will be reflected in it. Also if you have departmental cards, telephone or television service will be seen in your history. Everything good and bad will be seen in your credit history.

Many financial companies or that grant credits like Konfío review your credit history. This can be a great advantage if you are current with your payments, because you will be a good candidate when applying for a loan. In any case, although we do review your credit history, we also review other factors related to your business, in order to grant you a loan.

If you have had delays in your payments it will be reflected. This is not bad either if you get acquainted, because the latter will also be reflected in the history of your bureau and will show that you are paying your payments on time.

Where do I check my credit bureau?

 Where do I check my credit bureau?

There are many companies that swindle by making people believe that they can erase your negative credit bureau history. This is not possible. We recommend you to avoid having any contact with this type of fraudulent companies. Do not put in the search engine: “credit bureau”, but enter directly to the page: https://www.burodecredito.com.mx/

It is also possible to have a claim due to misunderstandings with companies or identity theft. Faced with this problem, on the same credit bureau page, you can request a service called Alertas Buró. It will notify you if something unusual is happening and will keep you informed about your credit situation.

In the credit bureau, all your punctual and late payments are reflected, in this way the financial entities can see the way you pay. Make sure you have a good track record, use apps that allow you to better carry out your finances and pay on time. Be careful and avoid misunderstandings.

What Credit Do You Request According To The Size? | Credit

What financing do you request according to the size of your business?

 08 Apr  What financing do you request according to the size of your business? Posted at 16: 35h in Credits for SMEs 0 Comments

The classification of the size of a business has been made according to quantitative characteristics such as the number of employees that work, the level of production they generate and the sales criteria they have; therefore we can find that there are small, medium and large companies.

According to the needs that each one presents, they come to require capital in order to increase their financial capacity and continue with their operations. SMEs (set of small and medium enterprises) unlike large businesses, seek access to capital through banking and alternative financial institutions.

Next, we will share with you details of the type of financing that you can find in both options taking into account the size of your business.

According to INEGI, the following characteristics define the size of a small and medium-sized company in Mexico.

Small business

The characteristics that define a business as a “small” category range from having between eleven and fifty employees to generate an annual turnover level of more than 500 thousand pesos and less than one million. The financial necessities that normally present are the lack of liquidity to face the fixed expenses, purchase of inventory, payment to suppliers, among others.

Medium business

A medium business can be said to be one that has exactly 51 to 250 employees working and generates an annual turnover of more than 10 million pesos. For medium-sized companies the capital that they require in addition to improving their liquidity, can pretend to be for further growth, implementation of technology, purchase of machinery, and so on.

Taking into account the characteristics of both types of companies, it can be said that their financial need is based on the capabilities required by their classification and the expectations that each owner may have.

Financing options

 Financing options

 

There are different types of financing that can provide the necessary for both business sizes and that can be found in the various institutions operating in the country.

 

Government support

 Government support

 

Government support for SMEs has emerged as public programs that aim to enable businesses to have greater productive and economic capacities within the country through loans. One option that you can approach is FONDESO (Fund for Social Development), where both entrepreneurs and micro, small and medium enterprises can access financing according to their size. The institution establishes that loans granted for small businesses can range from 100 thousand and up to 400 thousand pesos; while for medians they offer from 100 thousand and up to 500 thousand pesos.

Traditional credit

 Traditional credit

Traditional loans are also an option for an SME to access financing, these can be found both in a bank and some other financial. Within the different options you can acquire from 50 thousand and up to 10 million pesos with very varied conditions. For example, in Konfío, which specializes in loans for SMEs, you can easily access amounts ranging from 100 thousand to 2 million, under conditions such as a term and interest rate that suit the stage in which find your business

How can you realize, both options can be chosen for a small or medium business, however, you need to evaluate them together with the needs and capabilities of your SME.

What do I do if I have a bad credit history? | Entrepreneur Finances

 What do I do if I have a bad credit history?

If you have a bad credit history due to managing your finances, what you should do immediately is improve it. Having a bad score on your bureau decreases the chances of getting approved for new credits, for example, one for business. See http://pegasus-one.org/pow/ of critique.

The importance of the history lies in the fact that the institutions that offer loans evaluate it to know your level of indebtedness and how punctual you are in your payments. If they see that you have a bad performance, they will reject your request, since you present a risk of not being able to pay it.

If you perform the following actions, your history may improve:

Settle your due debts

 Settle your due debts

Maybe what has brought you to read this post is that you have multiple debts and do not know how to liquidate them. A good strategy to follow is to make a list of each one and evaluate them in the following way:

Adjust them by amount from highest to lowest, also note the interest they are charging you and so you will know in which to go gradually allocating a certain amount of money to settle it. We recommend you start with the one that generates the highest interest.

It is very important to be careful of your level of debt, since you can reach an over-indebtedness thanks to the amounts you owe plus the interest generated.

Pay on time

 Pay on time

It may be very difficult for you to pay your credits on time, either because you forget the cutoff date or you do not really have the liquidity. But still, you can apply small strategies that will make the change.

Set both your income and monthly expenses. From these, review what expenses you can reduce to raise the budget you allocate to the payment of your debts.

It is also good to have digital tools that help you monitor your credit history. In Konfío we develop Kompás, it is totally free and through this app you can review your history in real time and as many times as you want.

Reduce the use of credit cards

 Reduce the use of credit cards

It is true that the constant use of your cards increases the information you can provide with your credit history. But remember that the more you use them, the greater the debt you will have. Limit its use for things you really need.

Also having more than 5 different cards can hurt you, because you must first learn to use them intelligently. For example, many entrepreneurs use their personal loans to finance their business, which is not correct.

Now that you have these tips, you can improve your credit history. Learn how to properly use the credits to which you have access and reduce debts. This way you will have control over your finances and favor your opportunities.

What Are the Signs That You Are Losing Financial Control? Debts Consolidation

 

Maintaining good financial planning is not always an easy task, and if there is not frequent monitoring of financial control , it is inevitable that any process will destabilize and turn a real mess very quickly.

 

Losing financial control ..

 

Losing financial control ..

Financial control has become an essential part of any company’s finances. Therefore, it is very important to understand the meaning of financial control, its objectives and benefits, and the steps that must be taken to have it implemented correctly. Any financial performance process becomes meaningless if a strategy to control it is not defined and implemented based on objectives consistent with the current state of the company and its upcoming projects.

Accounts are delayed, debts accumulate, interest rates increase, and everything ends with you ever more distant from being able to hold the reins again and perform financially. Watch for signs of loss of financial control and avoid the problem even before it happens.

1. Get to the end of the month in red

 

Most people are accustomed to having less money on the arrival of the end of the month, and to some extent this is normal, since most Brazilians receive their payment on the fifth business day, remove their accounts and manage day to day with the remainder until the next salary.

However, when you live tight at the end of the month, it’s good to open your eyes: it can be a sign of lack of financial control ! It is necessary to make a schedule so that the money that enters enters last the whole month. When this does not happen, it is convenient to turn on the alert flash and find out what is preventing it from happening.

Usually the problem is in superfluous expenses from day to day , which are not accounted for and therefore you do not realize. Spending credit cards everywhere without giving an account of how much the total of the invoice will come, exchanging high-value bills and ending up spending the money in “cheap” nonsense, and the money goes away without you noticing.

When this happens, it’s time to organize a spending spreadsheet and control yourself so you do not spend more than you will receive. Write down your expenses!

2. You have no saved background

 2. You have no saved background

Not having money saved is also a classic sign of losing financial control . It is essential to have a reserve for any emergency, and the lack of it can put you in trouble, such as causing the need to use a loan and paying interest so if you need urgent money to cover some unforeseen.

After you make a financial spreadsheet and start adapting to keep a financial control so you do not spend more than you earn, you also start gradually to pull the brake a bit more so money on and you can save. It does not have to be too much at first, start slowly and increase gradually as you can.

This reserve is important to cover unexpected expenses, casualties and even leisure, but you must use responsibly to not get back to zero!

3. Living hanging with credit cards

 3. Living hanging with credit cards

Using a credit card can be a convenience or a trap: it depends on the financial control you have! The bill can be a real threat to your economy, because using the card without keeping any type of organization makes it easy to spend more than you earn.

Gradually this becomes a snowball because the money you have is not enough to pay the full amount of the invoice, then you pay the minimum amount or any amount below the total. This generates interest for the next invoice.

Since there is no living money on hand because of this debt, you tend to keep using the card more and more, and the problem never stops growing. If you live in situations like this, you are probably starting to lose financial control and need to redouble your attention.

Use credit cards if necessary, for Internet purchases or installments that are necessary, not forgetting to count the amount of the installments to your worksheet so as not to get involved, or you can end up with the negative name and a giant debt.

Watch for the signs and solve the problem before it gets worse. Maintaining a financial control provides a quieter life with no grips and is not difficult!

 

What Is the Minimum and Maximum Age in Real Estate Financing

 

Does my age interfere with the real estate financing period? It not only interferes in real estate financing, but also in “long-term loans” such as payroll loans and direct consumer credit. Real estate financing in recent years has made a spectacular leap both in the volume of concessions for home buyers and in the drop in interest rates, conditions and facilities that are being offered by Brazilian financial institutions.

In Brazil there are three most important types of real estate financing that the consumer can contract.

1) Housing Financial System ( SFH ) – in this modality, the credit granted by banks and credit providers is restricted to a maximum of R $ 500 thousand to purchase real estate, the resources used are savings and the FGTS. In the Housing Finance System (SFH) institutions are required to offer the modality but are subject to pre-determined rules, the maximum interest rates applied are 12% per year plus TR.

2) Mortgage Chart ( CH ) – financing modality for the purchase of real estate with a value higher than R $ 500 thousand, banks are free to apply the interest rate they deem appropriate.

3) – Real Estate Financial System ( SFI ) – in this system, institutions can offer terms, interest and other conditions or facilities as they wish. To provide the financing, the resources are from the creditors themselves.

Minimum and maximum age

 Minimum and maximum age

The minimum age to obtain personal loan and credit for purchase of durable goods in real estate financing is required to be 18 years to sign any contract. In addition to the minimum age, institutions limit the maximum age for contracting some types of financing between 79 and 80 years and 6 months. ie depending on the current age, if it exceeds the age limit, the institution denies the funding.

Real Estate Financing is a credit operation that involves risks for creditors, like any financial transaction, banks and financiers are looking for ways and means to protect themselves and avoid delinquency and the resumption of the borrower’s property are factors taken into account at the time of grant the credit.

Financing Considerations

 Financing Considerations

To obtain real estate financing, the interested party must take into account two factors: 1º. Having any kind of credit problem or restriction, will prevent the release of the funding. 2º. At age, you will not be able to finance real estate if the term of the chosen financing exceeds the ceiling set by the bank. Example: If you are 55, the maximum term is 25 years.

As for guarantees, most financial institutions require that the property be fiduciarily disposed of, in the fiduciary alienation the property remains as a guarantee of the financing and will only really be the borrower when he finish paying the entire plan, and if he can not pay the installments, he will lose the property.

What Does A Financial Manager Do? – Low Interest

 

One of the innumerable duties of the financial manager within the company is to determine the price of the product or service, in order to ensure that production costs and profit margin are included in the final value to be charged

What distinguishes a thriving company from a company in constant economic crisis is its good management of available resources and its best suitability in the market in which it operates.

In order for the company to perform well, its budget and financial planning must be well done and this is one of the innumerable responsibilities of the financial manager within the enterprise.

 

The financial manager and his role within the company

 

The financial manager and his role within the company

As we mentioned, the budget as well as the financial plan is one of the paths that must be followed by the entrepreneur to make his company more prosperous.

However, although the entrepreneur needs to have a full knowledge of management and a good financial knowledge, he must delegate the function of elaborating the company budget as well as his financial plan to a professional specialized in the accounting area.

The budget and financial plan allow the entrepreneur to make better decisions with a view to the financial health of his enterprise, so it is so important that it be a document made by a professional you trust.

This professional is the so-called financial manager and among the innumerable responsibilities within the company, the preparation of the budget (physical and digital file that determines how much you enter and how much leaves a certain organization) and the financial plan (document with all accounting data and financial aspects of the enterprise as its budget, its cash flow, its balance sheet and in addition).

Still in doubt about the importance of this professional? We will bring below some more attributions of this professional and how their role becomes fundamental within your company.

The importance of having a manager in the company

The importance of having a manager in the company

 

The manager is responsible for the financial area of ​​your company and is considered a professional of paramount importance to the prosperity of the business

All areas of a company are equally important for the whole to work well (the areas of marketing, people management, legal, etc.), but if we were to hierarchize them without doubt the financial would be among the most important areas since the maintenance of the enterprise depends on sound financial management.

From this perspective we can have an idea of ​​the importance of the work of the manager since it acts directly in important aspects related to the financial sector. It is the responsibility of this professional to pay the company’s bills, balance the expenses (aiming to maintain the health of the enterprise), issue notes and reports.

One of the main secrets for you, as an entrepreneur, to enjoy all the advantages of having a manager in your company is to trust the hired professional. Since in order for your work to be effective, you must have access to all of the company’s information, from the most mundane to the most important.

If you hide any information requested by the professional, you will be curtailing your work, limiting the effectiveness of your work within the company. So trust the professional contract and if necessary invest a little more to have a really skilled professional given its importance to the prosperity of your business.

The financial manager should be able to make decisions within the company, being considered as a slightly autonomous professional (therefore, trust between you and the professional should be one of the fundamental points in the process of selecting the professional to be incorporated into the team of your company).

 

Other duties that the manager can assume

 

Other duties that the manager can assume

The financial manager, as the name suggests, is responsible for the financial sector of your company, however, thinking about your performance only limited to “financial sector management” may end up making your actions abstract for anyone unfamiliar with this important professional. See below for other possible interventions of this professional:

 

Pricing

 

Pricing

Do not know if the price charged for your product is in accordance with your production expenses, profit margin and in addition? The financial manager can help you in this task. Determining three variables to effectively determine what the best price to charge for said product.

In order for your manager to determine the amount to be charged for your product, it must take into account the costs for its production, its market demand and direct and indirect competition.

 

Determine the direction of the enterprise

 

Determine the direction of the enterprise

 

The financial manager as an autonomous professional within his / her business may decide ways to be adopted by the company aiming at its economic stability and its better performance.

The manager can determine the cost cutting and the implementation of new strategies of action aimed at the target public of your product, or service.

 

Market valuation

 

Market valuation

 

Market analysis is usually done before the start of the business and basically determines your strengths, weaknesses, opportunities and threats.

When you have a financial manager working in the company, this market analysis is customarily redone trying to identify potential new strengths or weaknesses as well as new opportunities and threats. Still, it is the attribution of the manager in the market assessment, determine the possible growth of the company based on data about its market and its actions, as well as the possibility of exploring a new niche market.