Secured loans for small businesses in Colombia
When an entrepreneur starts his own business or when he needs to expand his business, he often has unplanned financial expenses and, accordingly, ways to solve issues related to finding the necessary financial resources. In addition to using his own savings, he can get help from friends, relatives, partners. Or he can turn to the bank for a loan. Relevant financial structures offer various types of loans, including loans secured by real estate for legal entities, including loans:
- •to replenish working capital;
- •for development;
- • for the purchase of real estate.
The main thing is to always remember that in the case of non-compliance with credit obligations for such loans, the collateral becomes the property of the credit institution.
Small business lending in Colombia
Small business secured loans are generally provided to ensure the efficiency and continuity of the production process. They are used to buy: circulating resources (especially in trade), equipment, real estate (production, warehouse, commercial premises), machinery, vehicles, plant protection products, fertilizers, animal feed, etc.
As a standard, loans for small businesses are issued with a repayment period of up to three years, with the possibility of extending it. Banks require collateral, which can be: a deposit in a bank, a car, goods in circulation, various types of buildings, equipment, an object purchased (with funds received from a loan for the purchase of real estate).
Features of issuing a loan for a small business
In order to apply for a loan, a legal entity must submit a rather large package of documents, which includes quarterly reports, copies of founding documents, a number of protocols and orders, accounting information, a list of fixed assets, and more. For this reason, a large part of potential bor;
• any other documents that may contribute to decision-making (business plan, etc.).
Small business lending in Colombia is also possible through online loans, when a minimum of time is spent and only a few documents are required. Loans through the Internet are becoming more and more popular due to the transparency and simplicity of the registration procedure.
Our creditnice.co loan selection service (including for legal entities) promotes the activation of entrepreneurial activity in Colombia, including through the search for the best conditions for lending to small businesses.
