Peru is a country of entrepreneurs. According to the Global Entrepreneurship Monitor (GEM), Peru is the third country with the highest number of early-stage ventures worldwide. However, according to figures PRODUCED, only 6% of the Msmes have access to the financial system regulated.
“Many entrepreneurs view credit with distrust; however, well used is a powerful tool to improve the productivity of small businesses and accelerate their growth. Indeed, the recent publication of the National Financial Inclusion Policy that seeks to improve access to and responsible use of quality financial services by 2030 reminds us of the positive impact that financial services, such as microenterprise credit, have in the country,” said Juan José Román, Project Manager for Aprende.
Within the framework of the 2019 Citi Microenterprise Award, Citi and Aprende share 4 steps to apply for credit for your business.
PLEASE CLEAR YOUR GOAL
Remember that working capital is not the goal in itself, but the use you want to give that money — merchandise? Work vehicle? Having a clear objective and the amount to request will influence your credit assessment. It is recommended that you use a credit to obtain assets that secure higher income for your business and can meet the loan payment.
CONSOLIDATES YOUR DOCUMENTATION:
After being clear about your funding objective, you will need to collect some documents that support your ability to pay to the financial institution of your choice, such as: annual financial statements, tax returns, cash flow, among others. Don’t worry! If your business is still small and you don’t know much about accounting, ask your business advisor for help in building your financial information.
CHOOSE YOUR FINANCIAL INSTITUTION
Before taking credit it is important to start a tour of the different financial institutions supervised by the Superintendency of Banking, Insurance and AFP such as so banks, municipal banks, edpymes, rural and financial banks. We advise you to choose the financial institution that, in the same period of time, offers you the lowest fee.
MEET WITH YOUR PAYMENTS
After the loan has been granted, don’t forget to apply for your payment schedule. This will keep in mind the dates on which you will have to pay your dues. It’s vital that you consider paying your credit.
within the monthly cash flow. Being punctual will make you attractive to financial institutions and help generate a healthy credit history.
“If it’s the first time you’re applying for credit for your business, not having a credit history can play you against it. Therefore, you can apply for a small amount and pay it in a short time so that you can generate a positive record for your good payment behavior. This will help you, over the next few months, to access credits with higher amounts and lower rates,” added Juan José Román.
AWARD CITI MICROENTERPRISE 2019
On August 30, registrations for the Citi Microenterprise Award are closed, an initiative of the Citi Foundation that, since 2005, has recognized more than 120 Peruvian entrepreneurs giving them more than one million Soles in free investment resources.