One of the biggest obstacles that an SME faces in its beginnings -or when executing expansion projects- is the lack of capital to finance it due to lack of business loans without collateral (สินเชื่อ ธุรกิจ sme ไม่มี หลักทรัพย์ ค้ำประกัน which is the term in Thai). However, it is a difficulty that can be overcome relatively easily, by accessing some of the credit solutions that the financial market offers.
Although you have to meet certain requirements -and pay interest that can sometimes be high-, a credit for a company provides some benefits:
- Access to capital almost immediately.
- Payment in the short, medium and long term.
- Strengthening of the production cycle.
- Strengthening the credit history of the company.
To determine which type of credit is better, you have to take into account the needs and conditions of each business. Therefore, so that you know what alternatives you have at hand, it is necessary to write down the characteristics of the different solutions that circulate in the financial market, so that each company can reach an intelligent conclusion. The interests and conditions of the product usually vary from one entity to another, but they can never violate the laws that regulate such operations .
Commercial Credit
It is a solution aimed at legal entities with financing needs, in order to support business growth and entrepreneurship. This credit can be used to finance the acquisition of goods, the payment of services oriented to the operation of the company and the refinancing of liabilities.
Depending on the financial institution, the loan can be repaid in terms ranging from three to 4 years. It allows capital payments and some institutions agree to monthly, bimonthly, quarterly or semi-annual installments.
Agroindustrial And Agricultural Credits
Products designed to finance agricultural cycles -including the acquisition of all inputs and labor-, or to execute projects for innovation and / or technification of productive activities in the rural sector.
Most of the financial entities that offer this solution, allow the purchase of machinery and implements, irrigation systems, animals and materials, among other assets that improve infrastructure. Depending on the benefits offered by each institution, the payment schedules can be adjusted to the agricultural cycle, with monthly, bi-monthly, quarterly, semi-annual or annual fees.
