If you want to obtain
the result expressed as a percentage, you must multiply it by 100. That is: ROI
= (Total profit - investment / investment) X 100.
The ranges of a good
ROI usually vary depending on the industry in which you do business, but
generally speaking, obtaining an average annual return between 5% and 12% is
considered a good investment. Less than 5% is terrible, and more than 12%
is excellent.
Can I invest my credit
for SMEs in whatever I want?
Now that you know how
to evaluate what to invest in to return a good debt, you can also make
strategies to use your credit options to play with the interest in your
favor. One option to do this is the combination of credits. Yes, we
mean business loans and credit cards.
The credits for your
business are usually higher amounts and with better interest
conditions. On the other hand, despite having higher interest rates than a
loan for SMEs, credit cards typically offer benefits and rewards such as
interest-free months or cashback that could generate value to your ways of
investing.
If your needs and goals
can be solved with your regular cash flow, you could cover them with your
credit card to earn those rewards in favor of your business. The
importance is always paying your card's total to avoid paying the interests
linked to that type of credit.
On the contrary, if the
investment is more substantial, use your credit for SMEs to cover that need and
constantly monitor that your ROI is being met according to the calculations you
previously made. Knowing how to mix your credits will allow you to improve
cash flow, obtain benefits for each peso spent, and take advantage of
interest-free credit. At the same time, your investment earnings cover the
interests of the most considerable SME credit.
Ideas to get your
SME loan
There are many ways
to use your SME credit effectively.
Still, if you are wondering what type of investment you can make with your SME
credit, here we share some recommendations focused on growing your business and
obtaining an ROI that allows you to have the security that your loan turns into
good debt.
Upgrade
or buy new equipment. Your productivity is
linked to the status and quality of the team you work with since your
income is obtained from it. Have the essentials that ensure higher
income well located to keep them in optimal condition. Also, consider
investing in technology such as a good point of sale system or a CRM
(Customer Relationship Management) to benefit your internal processes,
administration, and customer relationships.
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