Let's start by saying that it is important for a company to consider expanding its credit options when it's feasible to do so. Especially when a company is in good financial shape, it's wise to ensure it has more credit options than it currently needs. This ensures that if there is a temporary downturn in the company's situation, its credit facilities will enable it to continue its business activities. Typically, companies seek to secure credit when their financial data is less favorable, making the task of obtaining credit significantly more challenging and resulting in higher costs.
The Golden Rule: Get credit when you can, not when you need to!
How can securing credit the right way benefit a company?
Securing credit properly can have a positive impact on the entire company, helping it earn more and operate more efficiently in the long run. Here are various topics related to the company's banking credit, each highlighting how handling banking matters correctly can benefit the company:
- Company Profitability
In most cases, importing products from abroad is cheaper than buying similar products locally. But buying from foreign suppliers often requires immediate and faster payments compared to local suppliers.
Benefit: With the right credit, importing can be done at lower costs, boosting the company's gross profitability. - Ongoing Payments
Typically, most of the company's payments are concentrated at the beginning of the month, including salaries and institutional payments. This concentration can sometimes divert management's attention from business operations to managing cash flow, sometimes requiring loans at high-interest rates.
Benefit: Proper credit can help smooth out payment peaks, ensuring smooth company operations and salary payments. - Company Optimization
There are cases where a one-time investment can significantly optimize the company's operational activity, such as upgrading equipment and logistics. This investment often yields returns for many years to come.
Benefit: The right loan can lead to improved profits, reduced operational costs, and increased operational efficiency for the company. - Revolving Capital
In non-retail companies, any increase in sales adversely affects the revolving capital. Companies often need immediate funding for supplier payments and inventory expansion, while customer credit is usually longer than supplier credit.
Benefit: Proper credit support encourages sales growth and maximizes potential growth.
With us, you can obtain the credit you need to achieve your goals and grow the company.
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