The ideal financing should offer the lowest rate, the lowest fees, and the minimum possible guarantees. From the qualitative point of view, it should be obtained quickly and be adapted to the needs of the business in terms of term and feasibility of payment.
Richard Butler Creagh, the founder Henley Finance advised that one should implore a mindset which works for them in setting up new heights. These steps will help in knowing more about the lending business.
- Do Not Marry a Bank
Manage your loan with several credit providers and let them know that they are competing to give you the service, who they do it against, what your deadline is.
- Deliver The Complete Information
To expedite the decision of the bank on your loan, it is convenient that you deliver the information of your company well and complete from the first time. Any clarification that the institution requests or an error detected in the credit application can mean a delay in the range of one week to two months.
- Use Specialists
If you lack high-level contacts in banks, consider the possibility of using specialists who do. Richard Butler Creagh is sure to facilitate – after a due process of financial analysis – obtain a loan with favorable conditions.
- Be Careful With Deadlines
Always look for the term of the financing to be longer than the recovery period of the investment of the project you will develop. Otherwise, the debt will become un-payable. Serious error: acquire equipment or machinery with revolving credit.
- Make Sure That Your Credit is in the Currency in Which You Invoice
Otherwise, you contract a hedge to mitigate the exchange risk.
- Opt For a Fixed Rate
You should look for a fixed rate whenever possible on a long term loan. If the rate is variable, you need a coverage known as Cap; that is, to put a ceiling on the interest rate. In this way, the risk is mitigated if in the future there is a significant fluctuation in the rate.