DO NOT LET THE BANK away or denied credit IF YOU IS SMEs. How? Arriaga Associates, now in ZARAGOZA, SPAIN Reviewed by Momizat on .   HOW TO GET CREDIT FOR SMEs? Banks do not want to give money. SMEs now have no bank financing and so many companies have serious problems, many of survival. Th   HOW TO GET CREDIT FOR SMEs? Banks do not want to give money. SMEs now have no bank financing and so many companies have serious problems, many of survival. Th Rating: 0
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DO NOT LET THE BANK away or denied credit IF YOU IS SMEs. How? Arriaga Associates, now in ZARAGOZA, SPAIN

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HOW TO GET CREDIT FOR SMEs?

Banks do not want to give money. SMEs now have no bank financing and so many companies have serious problems, many of survival. The credit crisis is behind many business closures.

Banks now have no qualms about leaving their customers in the lurch and do not hesitate to cut the minimum credit problem detected. Really financial institutions also have problems and seek, like any company, save your own situation.

The entrepreneur is accustomed to dealing with business problems. But financial problems, not seen as a core part of business, have almost always been delegated to other professionals, although very efficient, they have not known this experience. All this combined has traditionally been seen banks with respect.

But, do not allow banks to cut funding, who do not renew a bank or credit account trade, which would finance temporary liquidity problems.

What is the solution? Negotiation. Almost always companies have debts with the companies and want them back someday. The banks, though blinded with short term, do not want to lose the funding already granted. In that situation you have to maintain a position of strength. But a solution of force by argument. Therefore it is necessary to show that the project is viable, there is business, there may be payback capacity. Therefore it is important to prepare business plans, feasibility studies, cash … and, if necessary, and the extreme situation of bankruptcy proposal.

Finally, it is always good to have a lawyer around. The bank will not dare bully when he sees the company behind a lawyer and an economist who has prepared a feasibility plan and a contingency plan if negotiations are complicated.

In my experience, a mixed team of economists and lawyers can strengthen negotiating with banks to keep financing and even increase it. At stake is the future of the company.

Jesús María Ruiz de Arriaga Remírez

Lawyer and economist. Specializing in bankruptcy.

Linkedin: http://www.linkedin.com/pub/jes%C3%BAs-mar%C3%ADa-ruiz-de-arriaga-rem%C3%ADrez/18/30/96

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