How does SME Loan work in Mexico

The lack of credit options is one of the limitations that Mexican SMEs face. According to the “Report on the conditions and competence in the granting of credit to SMEs”, the smaller a company is, the more difficult it is to find financing. Why? It is very simple, for traditional banking it is still difficult to generate more accurate analyzes focused on the risk analysis and the consultation of the credit profile.

Currently, different financing options have been developed to support SMEs like yours, which are the driving force of the Mexican economy. From government support to finance companies that use technology to offer financing that helps entrepreneurs in the growth stage of their business, just as we do in Dirosher.

Credit is an important factor since it becomes a growth engine for small and medium enterprises, and helps them to strengthen their productive cycle. So if you are thinking of obtaining formal financing, we share some information you need to know so you can understand how it works.

What benefits do you get as a SME when obtaining credit?

What benefits do you get as a SME when obtaining credit?

Remember that the benefits will depend on the institution with which you apply for the loan, some of them are:

  • Have access to capital in a short time
  • It allows you to finance your strategies to grow exponentially
  • You do not sacrifice the liquidity of your business
  • You create credit history and you get better conditions in the future
  • You get preferential rates depending on the activity of your business

When to ask for a credit?

When to ask for a credit?

There is no exact period, this will depend on the needs of each entrepreneur and you can request a loan at any stage through which your business passes. Before requesting it, I recommend that you be clear about what you need and what you invest in working capital that generates profits, for example:

  • Invests in raw material
  • Acquire machinery to systematize your processes and reduce costs
  • Use it to cover a large order from a customer
  • Expand territorially to reach more parts

How easy is it to get credit for your SME?

How easy is it to get credit for your SME?

The access varies according to each institution, in some the process can be up to 2 months, in others like Dirosher the process can be as few minutes. The requirements that institutions usually handle are:

  • Be a formal company. If you still do not formalize your business, you can register it on the SAT
  • A stable financial situation
  • A minimum of business operation
  • Positive credit history

Now that we have shared an overview of SME credit in Mexico. We recommend that before requesting a financing, take into account different factors such as your ability to pay, define what and how much you need, evaluate your options and choose the one that fits the needs of your business. The most important thing is that you convert the credit into an ally and do not fall into an over-indebtedness.