3 Recommendations for Startups to Access Financing

Being able to access financing is one of the main challenges that Start-ups face, so it is not an easy path, however, here we give you 5 recommendations so that you can start your financial life and meet the established objectives.

  1. If your company is in the initial stage, that is, it has been in operation for less than 3 years and is starting to hire its first 20 employees, look for a Fintech and not a Bank: Normally, banks tend to have a risk appetite oriented towards consolidated companies and larger than a company with 20 employees and that has not yet completed its 3rd year in the market. For this reason, we recommend you go to a Fintech that can be more flexible, such as Efinti, which has a specialized Line for StartUps called New Entrepreneur. Learn more about this line by clicking here.
  2. Plan the obtaining of resources: Do not wait to be at 0 in your bank and have 10 accounts payable to go to financing, have a projected and executed cash flow that tells you in advance when you should go to look for resources and what type of financing really need, it can be a credit or even Factoring or Confirming.
  3. Have the basic documentation of your company up to date: Do not wait to submit the application to update the basic documentation that any Fintech will request, prepare it and keep it updated:
    • Chamber of Commerce with an issue date no greater than 30 days at the time of submitting your application.
    • RUT Updated with issue no more than 30 days.
    • Copy of the identity card of legal representative, shareholders with more than 5% participation and Board of Directors (if applicable). In case of having legal persons within the shareholding composition, the documents of the final natural beneficiaries must be obtained.
    • Financial Statements with notes (last cut + last 2 years if applicable)
    • Bank statements for the last 3 months.
    • Income statements for the last 2 years (if applicable).
    • A Bank Certification of the account of the company to be registered.

* Valid documentation for Companies in Colombia.

Remember that it is only up to you to obtain the financing you need at the right time.

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