SME Credit Example

A SME credit It is a loan focused on small and medium-sized companies and is part of the new stimuli focused on business growth.

This credit can be of any of the three classes, “Small”, “Medium” and “Long term”.

Pyme is the abbreviated form or acronym for small and medium-sized companies; The definition or conceptualization of SMEs varies by country and place.

Small companies can be considered as SMEs, such as:

• A store,
• A small factory o
• Service lender company
• Internet cafe
• Tlapalería
• Stationery
• People who provide a service.

All companies require an organization and control by the state, this being what makes them businesses that were traditionally considered only as alternative sources of work now receive support and are considered "SMEs".

A SME loan is an easy and simple option to acquire funds or capital for a company and grants preferences, guarantees and for its This situation does not need a mortgage guarantee, it can be acquired through a joint guarantee that has the condition of being a guarantee solidary.

There are multiple banks that are affiliated with this type of program and provide facilities for small companies to start emerging and invest with new capital.

Requirements include:

• Representative identification
• Proof of address of the business
• Registration document with the Ministry of Finance and public credit
• Company financial data
• Latest financial data of the applicant company
• Latest tax returns for the previous three or two years.
• The declaration of assets of the company or its owner
• Credit bureau data

SME credit example:

Eduardo has a small restaurant, the number of employees he has is sixteen; Due to a review he had by the health secretary, he had to pay a fine due to a problem with the drainage system.

They explained to him that he had to implement some grease traps, Eduardo had to apply for a loan at his bank, and he appeared before an executive.

He explained that because it was a small company, he could be a candidate for an SME loan, in which short-term would have the capital to make the necessary adjustments and continue operating restaurant.

Eduardo hoped with this loan to be able to implement repairs in a short time and not dispose of the capital spending of supplies or the salary of the employees to implement these traps.

The loan granted to him by the bank is for a period of six months and he was able to pay it off in a shorter period of time.