Negotiate a credit is a necessary but difficult task for small businesses and freelancers. We bring you some recommendations. The company has to be as an open book a large percentage of SMEs and freelancers, as a result of their small size or turnover, does not have sufficient resources to hire the services of a specialist who will help them in the search for outside funding. It is a necessary task, but sometimes complicated since these companies are demanding greater guarantees, which adds to its inability to access other sources of funding such as, for example, issuance of bonds or stock market entry. For this reason, the Chamber of Commerce of Madrid, in collaboration with the Confederacion Empresarial de Madrid-CEOE (CEIM), recently held a meeting with entrepreneurs and managers where presented some recommendations that will facilitate SMEs successfully close financial agreements with these characteristics. In these processes the negotiation acquires great relevance custom when selling the suitability of the business, as well as the personal creditworthiness, it highlights the cameral entity.

One of the first aspects is related to transparency. According to experts, it is key that the company is like a book open with financial providers. This implies, among other commitments, deliver the financial state of the company at least once a year, give knowing long term investment plans or even detail new contracts which have been agreed with customers. Another of the key issues for obtaining financial resources in the best possible conditions responds to the need to plan investments with enough time to make them known to the entities. In this way, the company can clearly identify its ability to meet its payment obligations or if it is suitable to dispose of various financial instruments. It is considered that the level of debts with third parties must not exceed 60% of the total resources. It is one of the first points which analyse banks and if indebtedness is higher There will be more difficulties to obtain money or greater assurances, are asked to provide remember the experts of the Chamber of Commerce of Madrid.

Along with this, there is another series of practices that it is advisable to never perform as, for example, use short-term funding to finance long-term projects or permanent assets. The fact that debt expires until the project has started to produce enough as to return the can compromise the viability of the project. Of course, and while it sounds obvious, should not, in any case, falsify data. Above all, because if the Bank detects that figures are hidden, the entity will hesitate from what was presented. If you have had some non-payment, is it be prepared a convincing explanation that justifies it.