A simple way to stabilize your finances and create a credit history for your business is to reorganize your debt. More than half of entrepreneurs and business owners use personal loans or credit cards to finance business projects, which causes a disorganization of their finances.
But how can you reorganize your debt? There are different institutions that are responsible for liquidating them. However, if you do not choose a correct restructuring, you will become a momentary lifesaver of your finances.
At Konfío we have created a financial instrument that helps you transfer your personal debt and turn it into an SME loan. This way you can improve your personal credit history and build one for your business.
What is the best time to transfer your debt?
# 1 When you have many lines of credit
70% of entrepreneurs and business owners point to the lack of access to SME credit as the main limitation of their business. This makes this segment look for different options and obtain several credits to finance themselves.
If you have requested different lines of credit to invest in your business, a debt transfer will allow you to concentrate everything on a single credit. This way you can save time and forget about many payment dates.
# 2 When you want to save or reduce costs
Transferring your debt will help you pay less for your credit. Restructuring programs are designed so you can save money on interest payments. For example, in Konfío we offer preferential rates so you can settle your debt and the money you save can be used to boost the growth of your business.
# 3 When you plan to apply for higher credits
By transferring your personal debts you can immediately improve your credit history. And if you are a Moral Person you can start a credit history for your business. Financial institutions review your payment behavior and the credits you have obtained in the past to define the amount they will lend you. If you liquidate your current debt before and consolidate it into a single financing, it will help you obtain larger amounts and better interest rates.
If you are in any of these situations, it is a good time to transfer your debt. Use the right financial instrument and avoid requesting more than one loan to pay your current debts.