Avoid mistakes when obtaining credit

If you get a loan that you need to take your business to the next level, it is important that you learn to handle them properly. Remember that the mismanagement of these resources can cause the business comes down.

mistakes when obtaining credit

Then the mistakes most commonly make when getting this type of funding and that we should avoid:

Not knowing what you are actually charging
Many people forget to ask for more details, not just to know the amount you pay and the interest rate, but what is the origination fee, if interest is charged on outstanding balances, among others.

It is important to ask what the monthly amount that you must pay a disaggregated as well as the APR, the rate moratorium and other payments paid by your customer account. If you discover that payments are beyond you, try to restructure the debt until it causes you problems.

Ignore the currency
In many cases, having a credit in a currency other than the bills you may be disastrous. The risk is that before any change in the exchange rate, debt could increase and lead the company to closure.

If your credit is short-term, unifies the credit in the currency in which bills to protect yourself. If it is long term or exceeds this amount, contract coverage with the same institution.

Do not use credit
There are many people who know that their resources are being held because they do not know how to use but still pay the same.

It is important to find out what your suppliers offer discount for prompt payment and pay your account using your cash loan. You can also invest in some innovation or make the company more productive, for example, advertising or new product line; provided that the cost-benefit results in positive flows.

Continue to pay without the need
You have completed your goals and you’re even seeing profits, but you left over some money, and you continue making payments.

It is advisable not to lengthen the debt and liquidates the loan sooner. Always ask for a loan that has no prepayment penalty.