Make sure we really need a loan
The first tip is to make sure we are really going to need extra money for our business, and that the only way to achieve this is through external financing.

We may need money to increase our working capital to acquire new machine, to open new premises in order to pay off other debts, etc..

We must bear in mind that a loan involves a great responsibility, so before you request, we must ensure that we will be able to pay in due time.

To ensure that we will be able to repay the debt
The second tip is to make sure we are able to pay the debt.

To do this we must develop our projected revenues and expenditures, and assess whether the profits earned after use, the loan will allow us to pay the fees necessary to cancel the debt.

Evaluate and compare different financial offers
Before deciding on a particular financial option, we must evaluate and compare financial offers it all there on the market.

We must look at all financial institutions that could give us credit, and the products they offer, taking into account the cost of the loan, the deadlines, the financial institution’s reputation, its customer service, etc.

Something to keep in mind is that not always the largest financial institutions and knowledge will be the best option, but there are specialized institutions in the sector it belongs to our company, to be designed especially to boost this sector, may offer more attractive products .

Taking into account the total cost of financing
When evaluating and comparing different financial products that exist, we must consider the total cost of financing, but not the interest rate.

The total financial cost includes the interest rate, plus other costs normally included additions on the loan such as the costs of issuance or maintenance.

So before you take into account the interest rate, which in reality we consider is the total financial cost, which is the real rate of interest payable.

Read the fine print well
By acquiring a loan, before signing the contract, we must take our time and read it, paying particular attention to the fine print.

We must read if there are conditions or additional costs which we were unaware, and we should not hesitate to ask any questions or queries necessary, if you have any questions or concerns.

Negotiate better terms
We must always consider the possibility of negotiating the loan, trying to get a lower interest rate, lower fees or, in general, better conditions.

We should never rule out this option, especially if we are already customers of the financial institution, or have already shown a good ability to borrow.

The case of treasury bills is perhaps the most significant. At the last auction of June 15 had to pay Treasury yields 2.45% and 2.9% for selling points to 12 and 18 months respectively, representing 2.7 times more than 0.9 % in April for the first case and 1.4 times more for longer-term securities. In fact, thanks to this performance succeeded in placing 9,700 million euros.

At these levels, the yield on Treasury bills and debt begin to develop an alternative set of investment. However, it should not lose sight of the reasons for this increase in benefits offered by these products. And is that generally the higher the profitability of an asset, are also major risks.

For Treasury securities, increased profitability is the result of the increased country risk, measured in the spread between German and Spanish bonds with a maturity of 10 years and is near record highs . What actually happens now is that Spain must pay or offer more return than to issue the same debt or for the same money from investors.

So you should invest in Treasury Bills? Imago Is there a risk? The truth is that the rumors of a rescue plan for Spain has been steady over the past week. Since the EU denies any plan for it and so far it seems that the government’s adjustment measures have been content to Brussels, but has also demanded greater expenditure restraint.