Uncertainty accompanies us in most stages of business, but there are times when everything around us seems unstable, and not only through our fault. The calendar year is about to end, winter is upon us, geopolitical changes are changing the world, interest rates in the economy are rising, inflation is rising, and we have already stopped counting the number of election rounds in recent years.
Uncertainty presents us, business owners, with a dilemma: on the one hand, it doesn't feel like the time to take a loan (credit?) and on the other hand, right now our business needs support more than ever.
So what are we going to do?
Some of us will choose to do the best with what we have, reduce expenses as much as possible and wait until anger passes. This is a possible strategy, but it does not help us solve the uncertainty because it does not provide us with the knowledge that we will be able to survive this difficult period. On the other hand, it is possible to examine financing options that will provide us with support throughout the challenging period and allow us to get through it safely and even make investments to strengthen the foundations for the next wave.
True, adding another commitment to ourselves right now is a scary step, but, if we do things right, we can turn the commitment into a business opportunity.
How do you do it right?
Some key rules to know:
Know what to ask for
First, it is important that we look for the right solution for our need. For example, if we are looking for support to help us meet our monthly obligations throughout the difficult period (payments to suppliers, etc.) we will ask for a credit line, but if we want to become more efficient and invest in the business (a new machine that will save us time for example) we will ask for a loan.
Know who to ask
After we understand what we are looking for, we can narrow down options and understand who we should ask from. One of the most important factors in obtaining credit is to request it from the appropriate financial body. Suitable for what? to our type of business, to the specific credit needs and even to the industry in which we operate. A correct choice will save us time and effort and significantly increase our chances of getting the requested credit.
And speaking of increasing chances, an important thing to remember is the law of large numbers. There is always more than one financial body that suits us and once we have narrowed down the list to the relevant bodies, why not contact them at the same time? Turning to one financial body (our bank branch for example) not only limits our chances of getting the requested credit but also lowers our bargaining power. It is always useful (and certainly in the current period) to have more than one offer in hand so that we can understand which one is the most worthwhile and whether it is right to combine them.
know what to get
At the end of the credit application process, we will receive a credit offer (or several offers, if we applied to several entities), but is it worth taking it? Is it good for us and our business past? And if we received several offers, how do we know which one is the optimal offer for us? It is important to remember that a credit offer as it is, is an offer, and not every offer is worth taking. It is important to examine the conditions, the interest rates, the loan period and the ability to repay the loan not only at the time of taking the loan but also in the long term.
Know how to ask
When we were children we were told to "ask nicely" if we want to get something, so maybe we don't need to "ask nicely" from the bank, but if we want to get an offer (and within a reasonable time), it is important that we know how to ask for it.
It is important that we ask for the right credit product, that we provide all the necessary details and that we make sure that the data is as accurate as possible in order to reflect a complete picture of the business to the financial body and allow it to examine what it can offer us. Sometimes, the lack of information or incorrect/incomplete information will cause the financial body to reject our application outright.
Ok, so now that we know all this, how do we proceed?
That's exactly what we're here for!
We already know exactly how, from whom and what to ask and also what should be received..
With Optilon, you can fill out a credit application digitally and send it to several financial entities (that match your credit needs) at the same time, thereby increasing the chances of receiving the requested credit and under optimal conditions. Our credit advisor will also accompany you through the process, make sure that the credit application is complete and correct and, of course, will help you choose the most optimal offer for you.
The road to creating certainty starts here
Want to check the odds in advance? Our credit calculator will give you an initial indication
