Small Company – Credit or Leasing | Working Capital Loan Investment Loan

Maintenance costs

Regardless of the size of the company, everyone needs cash to start, maintain and grow. A small company also has smaller opportunities and can not dress in the ways of financing the company. This does not mean, however, that he remains in a stalemate and does nothing without his own resources. A small company also has options. It can spend not only its own resources, but also money from a loan or things from leasing to finance the enterprise.



Financing the enterprise through credit is directed mainly to small and medium enterprises. This is due to the fact that big factories have a lot more opportunities and credit is not the best solution for them. Due to the fact that a small company can not offer all available solutions, a loan can be a good solution, thanks to which we will finance a company.

Revolving loan

Revolving loan

One of the types of credit available to small and medium-sized companies is a revolving loan. The working capital loan is intended to cover the company’s current expenses. Thanks to it, the company’s financial liquidity is maintained. It is useful not only in crisis situations, when we do not have the money to cover all debts. It also applies to companies operating seasonally, which before the season requires a cash injection, which in a short time are able to catch up with a vengeance. A working capital loan is a short-term loan. The loan period is from 1 to 2 years.

Investment loan

Investment loan

The investment loan is intended as the name suggests the purchase of assets that will contribute to the company’s development. Thanks to it, for example, we will modernize production, buy new machines or buy modern technologies. It is a loan for investments. The loan period is much longer than in the case of a working loan and amounts to as much as 15 years.



If we are a newly opened small company, we do not have much chance for a loan. It is worth remembering that credit is not the only solution. There is also a leasing contract, which assumes that one party to the contract transfers the other thing that it can use. In return, he agrees to pay the leasing installments. The lease agreement is less formalized, and thanks to the fact that the entity handing over the use of the item is its owner at all times, the leasing security is greater than the loan, thanks to which it is easier to obtain it even for a new company. You do not need creditworthiness at the level of credit.

Prepare your finances for changes in your life: Open a Business

There are changes that you expect and changes that you do not expect in your life.

The difference between the two is that for the first you can be forewarned and have them planned and the second you get totally unexpected .

Throughout 10 articles I present 10 of the most important changes in your life and how to be prepared in front of them from the point of view of your Domestic Economy . That’s why I call this series of articles: Prepare your finances for the changes in your life.

Being prepared for changes is essential. Minimize risks and solve problems before. This is a fact.

That is why at the end of reading each article you will be prepared to face that change . You will know how it impacts you and how to recover your finances.

As previous considerations for any of the changes of what we will discuss throughout this series I give you a series of previous tips:

Have prepared an analysis of your domestic economy : Knowing the situation in which you find yourself is the only way to know a priori the consequences of any decision. If you do not know where you are, it is impossible for you to know where you will go with the change of life you are raising.

control your emotions: yes, I am a control obsessed. If you follow this blog you will know that it is very important for me to have the maximum level of control over the environment. This minimizes risks. And this is expandable to the control of your emotions. When facing any change you can not let yourself be carried away by stress or by your emotions. Decide with head and from the tranquility . Otherwise the probability of erring is very high.

– Do not be scared by the changes: if you know where you are, and you know where you want to go, the changes are necessary to achieve any goals. Face them always from optimism . The way you mentally face a change directly impacts the way this change is executed. Your way of thinking affects your environment . Do not forget.

Depending on your personal situation each of them will fit more or less with you, of course. But surely you know someone who is in this situation, give him a hand and send him this article, it sure helps.

Prepare your finances for changes in your life: Open a Business

Leave the “apparent” security (and I say apparent because at any time you can be on the street) of a job with your co-workers, it is very difficult both financially and psychologically.

If you have already taken the step and you have decided, I advise you to take into account the following aspects, because they will help you in your transition:

  1. Concentrate to leave your job: maximize your capacity for savings by adopting more austere habits that allow you to go through a period in which your income will be more reduced.
  2. Develop a business plan: I do not say a business plan like those that ask you when asking for financing, I mean that you have clear what you are going to sell, to whom you are going to sell it, how are you going to sell it and what price and with what costs. Complete this canvas , surely it will clear your mind.
  3. Modify your insurance policies: your situation is now more unstable than ever, modify the conditions of your policies to ensure against risks you may have.
  4. If you have not done it before, establish a savings plan for your future : go filling the bank in good times, because you will also go through many bad times.

And do not forget that all changes are good or bad depending on how you take them. It seems a topic but it is not. A change can be your opportunity for your life to turn where you want. Seize it.

Remember more training in Personal Finance more possibilities to get ahead and improve your Home Economics. It is in your hand.

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