Bank financing: How to achieve the best conditions
Bank financing remains the preferred way to obtain capital of Portuguese entrepreneurs. Although there are other alternatives in the market, this is the one that seems to be most rooted in the national business world.
To start an activity, entrepreneurs must have at least some equities and, as a rule, use the capital of others. In the latter case, recourse to financial institutions is the most sought after for various reasons.
Regardless of the source of funding chosen, it is essential to study all available options, then elect the most appropriate or even combine some.
Types of funding available
A quick survey on the subject shows the huge diversity of sources of funding that already exist in Portugal. The options available go far beyond traditional bank credit.
There are several supports and incentives, such as crowdfunding, Portugal 2020, Business Angels and Venture Capital, investment funds, among others. Most of the time, the bureaucracy involved or the ignorance, desist entrepreneurs, who end up resorting to banking.
However, even if you decide to opt for bank financing, remember you should never rush! There are some simple cares you can take to get the best financing lines with the best market conditions.
3 Advantages of using specialized consultants to negotiate with banking
Banking institutions have a position of power vis-à-vis the entrepreneur. This is because they have the capital that the entrepreneur needs and because they have a financial knowledge that he does not have.
This alone puts the entrepreneur in an unfavorable position when it comes to knocking on the door of the banks. Thus, there are significant advantages in applying for a credit and negotiating with the bank through specialized intermediaries.
1- Greater knowledge and attention to detail
To deal with banking, knowledge is required. In most cases, the entrepreneur, when he goes to the bank, is focused only on obtaining capital. On the other hand, the account manager who serves him is there to defend the interests and business objectives of the banking institution. Thus, not infrequently, the entrepreneur gets a line of credit that serves the interest of the bank and not yours. With more knowledge, you could have chosen a more advantageous credit line or even another bank.
On the other hand, as the entrepreneur does not have a great knowledge regarding finances, there are several details that pass next to him. We refer to fees, commissions, maturity periods, guarantees and grace periods. All in all, it can save hundreds of euros!
For all this, opting for expert advisors to obtain and negotiate financing is the safest option. These companies are more attentive to details and have teams specialized in analyzing contracts and negotiating terms.
2- Increased trading capacity
Due to their experience and financial knowledge, specialized consultants treat the entire process with great rationality and attention to detail. Being a great advantage when defending the interests of your client, in the negotiations of commissions, fees, deadlines, guarantees and others.
Thus, letting specialized consultants deal directly with the banking offers greater security and represents a saving of many hundreds of euros.
In most cases there is already a basis of trust between the parties that facilitates and streamlines the whole process. The conditions achieved are usually very advantageous. The entrepreneur can stay focused on the success of his business and delegate this work to those who know.
3- Better financing conditions
Negotiating through specialized consultants allows to achieve a fair balance for the entrepreneur in the presentation of guarantees and equity, among others. The fact that financial advisers are also well known about the functioning of banking institutions simplifies the whole process. These institutions know which lines are available and filed with the Portuguese state, facilitating access to credit and the business process.
The interest rates and conditions obtained through the intervention of these specialists are incomparably more advantageous. In short, it is an investment that pays itself and in a short time, saving hundreds of euros to entrepreneurs.
Before moving on to financing, look for a financial intermediary that is appropriate to your needs and experience in these processes. This will help you achieve the best conditions for your business with very significant gains.
