Getting low-interest loans for business is not an easy task. Whether you have a small or medium business, retail or service provider. Certainly, you have already tried to make one more working capital loans to maintain and expand your company. It is possible that you have already come across the interest rates applied in private banks and traditional lending institutions, most of the time does not pay.
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In this article, we’ll show you why banks and financials are not your only option to capitalize on your business and direct your business to the path of success. We currently find in the financial market a series of affordable financing alternatives with lower interest rates. If you believe that you will find low rates only with the BNDES card, I’m sorry to say that you even need to update your business credit information.
Credit startups and Fintechs are companies that adopt technology as a driving force along with the banking system to offer fairer and more equitable credit terms to borrowers and borrowers. In the whole world, this type of company has acted strongly and revolutionized the way one picks up loans and how to borrow money with their online personal loan solutions for individuals and legal entities.
In Brazil, the online business loan market has grown exponentially. There are hundreds of new companies for online business loans that are making life easier, redirect to oakparkfinancial.com.
3 options for lower interest loans
1. credit and secured loan
If you have a vehicle or property (home, land, apartment, site), they can be assets to be given as collateral. In this loan model with property and assets guarantee, the financial institution makes the loan of money for its company but stays with its asset sold until the end of the operation.
Like secured credit, your company can get credit deals with more attractive rates, averaging 1.15% per month. But it is important to understand where you are stuck in the arm: in case of non-payment of the repayments the property, car or vehicle can be taken by the lender.
2. Crowdfunding Equity for Businesses
The capital injection is undoubtedly beneficial and an excellent alternative for raising financial resources for small and medium-sized companies that are in a state of a startup. In this type of credit, the company receives investment from individuals. In Brazil, EqSeed represents this category well.
The investor receives debt securities that may, in a few years, be converted into company stock.
3. Collective Loan (Peer to Peer Lending P2P)
The name may even be difficult to speak, but not to translate, peer-to-peer, in the most obvious sense means person to person. The peer-to-peer (P2P) loan was created to facilitate borrowing, credit for businesses, and commercial financing.
In this type of loan created in England in 2005 by Giles Andrews, but here in Brazil with Biva and Nexoos, it is the companies that finance loans through individual investors interested in alternative, more lucrative investment portfolios. Unlike equity crowdfunding, in the social or collective loan, the entrepreneur maintains his actions.
What the Lending P2P loan company does is actually bind investors and your company. Usually, lending platforms do not use large institutions or banks as lenders, peer-to-peer lending achieves much lower rates than those practiced by conventional banks and financial institutions.
In Brazil there are many P2P platforms, they make low-interest loans for small and medium-sized enterprises, collective financing rates vary between 1.4% and 2.6%, for negatives between 3% and 8%. It is worth checking. ( interest may vary between platforms )
As you can see, the financial world is evolving into Fintechs, and they continue to grow here and around the world, their offerings are based on technology solutions for individuals and corporations, including the massive use of online mobile applications and platforms on the web.
It is worth mentioning that with this advancement, soon anything that is related to business management and your company, will be done remotely and online.
With lower interest loans entrepreneurs and entrepreneurs will be better able to maintain their businesses and to be able to finance traditional or alternative working capital more efficiently.