Current situation of access to credit

Accessing a loan or thinking about requesting a loan is a recurring idea whether it is a personal loan or for a SME.

The truth is that the reasons for requesting a loan are varied and can range from personal issues to business investment issues, regardless of the size of the business.

Surely when you walk through a mall you have found the seller of credit cards that prompts you to apply for this service, even when you do not know your financial situation. This is because financial institutions have a credit or loan objective to grant and you are the main asset to achieve these goals.

But do not believe that accessing a loan is something simple

get a loan

The truth is that although it may seem a lie, obtaining a loan or credit can be in many cases a delayed process (With Easy Loan you will not have to worry about that) and that is why many businesses especially decide to look for other alternatives to obtain money.

This time we want to talk about how is the environment of access to credit in Mexico for an individual and for a SME.

What is access to credit?

What is access to credit?

When we refer to access to credit, we focus on the situation that a SME faces when applying for a loan, financing or requesting a loan. While it is true that there are specialized financial institutions, when you go to apply for a credit most people are unaware of the existing options regarding the requirements, terms, benefits and restrictions. Of course, not all SMEs have had problems asking for a loan. We do not seek to scare you, much less make you look for other unreliable options; What we want is for you to know the current situation that you are likely to face when applying for a loan, and keep in mind that you must responsibly choose the financial commitment you are going to acquire.

Access to credits for individuals

credit score

Recently there has been an increase in access to credit in the segments of the population that traditionally remained excluded. Thanks to the financial inclusion report made by the CNBV, we can observe that the increase in people with bank accounts or access to a credit increased from 12% to 29% in the lower income segments.

What is also true is that financial institutions have made the decision to be much more flexible with this sector when granting a loan or credit. This supports that individuals have much more opportunities to access a loan than SMEs, since the requirements are usually not so many. It is almost always requested that you have a source of income and have a good credit bureau score, achieving much shorter waiting times. Fortunately, there are new solutions when you think about asking for a loan. Online options have been adapted, and now it is much easier to request a loan online, without having to go to a financial institution. If you have any doubts about this, at Bilbo Baggins México we can help you, because with us, asking for a loan is within one click.

This is extremely important, since many of these people when acquiring a credit or loan start their credit history and consider acquiring other financial obligations, both personal and business, since they can take the big leap and start their own SME.

Access to credit for SMEs in Mexico When a SME seeks to obtain financial resources to start operating or continue their growth, they almost always encounter obstacles that make them desist from applying for a loan. It must be remembered that these businesses are growing, and are often stopped by the lack of financial opportunities to develop new promotion and sales strategies. Thanks to a survey conducted by Banxico, we can know that the majority of SMEs usually prefer to request loans or financing directly from their suppliers. This is above requesting a bank loan or requesting a loan from a financial institution. This simple factor demonstrates the lack of confidence one has in requesting financing for a business from financial institutions, which, as we have said, is directly related to the inaccessible conditions to acquire it.

The unfavorable perception is directly related to the conditions related to the amount of amounts offered, which tend to be very high for some business needs, interest rates and management fees, requirements and times for resolution of an application. Recall that most SMEs need money at the moment, especially to take advantage of investment opportunities with suppliers. Regardless of whether you are a natural person or are looking for a loan for your SME, we recommend you always keep in mind that you need to be responsible with these obligations. It is necessary that you consider your income and expenses to determine the capacity of payment you have, and with that you can apply for a loan or ask for a loan with the security of having enough liquidity to cover it in time. Remember that in Easy Loan you can request a fast and simple online loan. We await your request! Bilbo Baggins.