The cost of bank credit is one paradigm of many businessmen and refrain makes this solution to look at risk the survival of your business, when really if you need this financial leverage.

The paradigm is how we “see” the world, not in terms of views semitone us, but as perception, understanding, interpreting.

Through my business experience in the financial sector has been able to detect that the entrepreneurs (SMEs) and entrepreneurs in general that need credit to finance their businesses and grow, not go to the bank for fear of financial cost.

This situation reflects the lack of information about funding opportunities offered by banks and some government agencies that promote or encourage entrepreneurship. In addition, because they exert a very informal business, is not a business record or if they take it incorrectly.

Lack of information makes the entrepreneur or entrepreneurs to strengthen their perception that bank credit is very expensive.

Let’s see how we can break this paradigm:

The first thing to do is find a good accounting advice, which allows you to submit financial information a reasonable and reliable to the lenders.

The same counter can guide financial assessment to apply for credit and submit the required information to the bank.

But this is not enough, when the entrepreneur who gets credit, it’s really doing is to finance your business assets and must use a credit efficiently and directly targeted to the business activities of production, can not be directed to meet individual needs.

Lead to a malpractice credit will sacrifice asset returns, which would prevent him from covering the cost of capital. So this will also strengthen the paradigm of expensive credit.

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