It is common to think that business It will only need financing in its initial phases and that, once stability is achieved, is not more capital investment is needed, as the company makes enough profit to support itself herself. However, currently, companies are in continuous evolution and, part of the success of any business is in the continuous development, and therefore, in the change: of techniques of marketing, commercial, technology... Each of them requires significant capital injections and, if the entrepreneur had to wait until he had the capital necessary for these changes, the company would be greatly affected economically, since other competing companies could become stronger due to the investment. It is at this time, when the request for a bank loan is necessary.
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Bank credit is, together with loans, the most frequent asset operation in the company. The difference between the loan and the credit lies in the fact that, while the loan is contracted for a specific purpose, for example, to start the business or for the acquisition of electronic devices, and cannot be used for other purposes; Bank credit is not linked to any specific activity to purchase products or services, and the funds can be applied according to the needs of the company.
For both the loan and the credit, a contract is signed between the entrepreneur and the Bank, in which the indicates the amount and the forms of return, but in addition, the bank credit has the following features:
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- The money will be used to finance the activity business determined in the contract, within the limits established therein.
- Credit operations are subject to the payment of interests on the capital available. The form of payment will be agreed between the Bank and the employer, although the most common form is through the payment of interest quarterly due.
- These are operations to short term and whose duration is specified in the contract.
- The contract can be renew. The credit agreement is of a fixed duration, but the employer can request as many extensions as he needs, it will be the Bank's job to accept or reject them.
Credit is an important tool for the development of companies and is also indicative of the good health of the economy in the country.
