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.
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.
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.
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 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 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.