Celia Bujaidar
Founder and Director
Premo
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View from the Top

Opening Opportunities Through Credit

Mon, 01/30/2017 - 13:12

Q: How does Premo contribute to the development of SMEs in Mexico?
A: Most SMEs do not receive credit from the banking system. SMEs receive funding mainly from their suppliers without knowing the real cost of that credit. By going through a financial institution, companies can pay rates that end up being much more economical than those applied to loans from suppliers. Premo provides loans for working capital to SMEs, which allows them to access better prices for their inputs or to increase their operations. Many SMEs have access to commercial banking but the processes are too slow. We are a fast source of support in approving and delivering money. The company also works as a bridge for those SMEs that do not have access to commercial banking credit. This way, companies can create a credit history, which will later help them access commercial banking loans.
Q: What are the myths surrounding credit lines that prevent SMEs from accessing them?
A: With small SMEs, sometimes a lack of knowledge leads them to believe that accessing credit lines through a formal institution entails a heavily procedure. Many are not aware of the benefits of receiving credit from a formal institution.