All types of businesses need funds to maintain their daily operations. The import and export company faces the same situation too. Fortunately, there are various export credit financing solutions that import and export reliable business. With this solution, this business will have fewer worries about the funds they need for their operations.
In order to succeed in obtaining and maximizing this export credit financing solution, it is important to avoid certain mistakes. These 3 top errors you have to avoid are:
1. Failure to fully understand the ratio of your credit utilization. Banks and financial institutions can check the debt in your business book to see if your current cash flow and projected can handle taking additional debt. You can avoid rejection from these companies by studying beforehand how to calculate the ratio of your personal and business credit utilization (the amount you owe compared to your credit limit) before applying for a new loan or all types of financing options. Financial experts say that good practical rules are maintaining your utilization rate below 30 percent for the whole and for each revolving credit path.
2. Do not calculate your annual percentage or April. There are many numbers and costs involved with financing offers. Flower percentage level, daily debit, and service fees are just a few of these numbers. You can understand and understand all these numbers by first counting April from your offer before signing a contract. April relates to actual costs per year borrowing money and is usually higher than the interest rates advertised. It takes into account the interest rate and compound effects and additional costs and costs. Thus, it is important to ask about April when he sees loan offers. If you can, learn how to calculate it yourself. If a bank or financial institution will not give you the information you need to calculate April, they may not look for your best interests and the best is to consider other companies.
3. Do not request feedback from a bank or financial institution that rejects your application. Finally, if one of your financing applications is rejected, don’t give up easily. Ask the institution to feedback and try to learn from the process. Business Financial Consultants say you must politely ask for an explanation of the lender’s decision to see what and how you can improve for your next effort.