Sun. Jun 16th, 2024

Effective Solutions for the Best Loan Deals


Effective control of long-term financing is vitally important for companies. An erroneous decision on how to finance the asset can lead the company to bankruptcy or an inability to pay in front of third parties.

To learn how to finance the assets of our company, it is important to explain that it is the working capital, working capital or working capital can be defined as the permanent financial resources needed to carry out the current activities of the company normally , that is, the part of assets financed with long-term resources, which is what this post is about. The Cash Advance Loan option is perfect there.

How to finance the asset

How to finance assets is one of the most important business tasks and the subject of great economic studies and debates, but under normal circumstances, we can affirm that we must always finance the permanent needs of a company with long-term credits .

Financing a fixed asset in the short term in most cases is a financial mistake that is usually paid dearly. Before hiring a loan it is important to evaluate the destination that we are going to give it.

Financing examples

If the company wants to buy a property, the financing that it must use to make said purchase is a long-term loan, since it is a permanent investment.

If a company has problems in its treasury, because it pays before collecting, in addition to other measures, the ideal is to finance itself in the short term, the most correct thing would be through commercial discounts of receipts and promissory notes. Many companies use credit policies for this cause, which becomes a problem when those cash needs become permanent. Also in case of Merchant Cash Advance you can opt for the best choices now.

Forms of long-term financing

The most common instruments offered by banks as long-term financing are:

  • Loans
  • Credit policies
  • Leasing
  • Renting

Ultimately, it is appreciated that to finance the asset, we must control and maintain positive our working capital and evaluate the financial needs of the business, take into account the treasury to avoid altering the monetary flow, and design an adequate financing strategy.

Right now you are within the group of people who are in search of obtaining a personal loan to be able to cover a payment and by chance or curiosity you noticed with amazement the great difference that exists between the interest rate to pay for a loan and the one that the bank pays us for our savings, or worse still, the great difference between a bank, a finance company and a municipal savings bank.

Differences between the rates granted and charged

Is it then that the bank takes advantage of me with those high interest charges on a loan?

It is easy to look critically at others when we do not put ourselves in their place, although there are also cases in which those who charge are really almost onerous.

You have a pre-approved loan here

Before we all think about this, no one sets up a bakery to sell bread at cost, always looking for a difference that represents a profit, and in the financial system that difference is called “spread”.

An entity needs to obtain money with savings, CTS or term deposits to be able to generate personal , mortgage or vehicle loans and the way to make a profit is to have the highest possible spread; This profit is used to pay the expenses of each operation such as risk analysis, commercial executives, legal ones, among others; additionally, there are the expenses of the company itself with the network of agencies, the staff and all that we can imagine that they may have to manage an entity of that size.