When you shouldn't take out a working capital loan
Posted: Sun Jan 19, 2025 10:20 am
If there is no clear business plan. If the individual entrepreneur does not have a strategy for investing funds and their payback, the loan will make the company's financial position more precarious. For uganda telegram database example, an entrepreneur sells cosmetics on a marketplace. Supplies from other countries are not fully established, so there is no confidence in a constant profit. In this case, the business needs to work out a procurement scheme, track metrics and only then take out a loan for advertising or business expansion.
Is it possible to take out a working capital loan if you already have a loan?
If you already have a loan, you can also consider revolving credit. The main thing is to make sure that the funds will actually work and the total loan load will not exceed a certain percentage of the income amount.
For example, an individual entrepreneur's income is 200 thousand rubles per month, of which 70 thousand rubles are spent on paying off loans. Credit load: (70,000/200,000) x 100% = 35%. The individual entrepreneur is in the "safe zone" if this figure is no higher than 50%. Otherwise, financing may not be approved.
Is it possible to take out a working capital loan if you already have a loan?
If you already have a loan, you can also consider revolving credit. The main thing is to make sure that the funds will actually work and the total loan load will not exceed a certain percentage of the income amount.
For example, an individual entrepreneur's income is 200 thousand rubles per month, of which 70 thousand rubles are spent on paying off loans. Credit load: (70,000/200,000) x 100% = 35%. The individual entrepreneur is in the "safe zone" if this figure is no higher than 50%. Otherwise, financing may not be approved.