Choosing the right credit boosts your business

In the business world, financing can be the springboard to growth or the beginning of a crisis. And it's not all about getting a loan: the important thing is getting the right loan for your time, your cash flow, and your goals.

Good credit gives you oxygen, allows you to grow in an orderly manner, and professionalize your operation. Bad credit can pressure you with unaffordable payments, limit your future decisions, or even put you close to bankruptcy.

🔍 What makes a loan “good” or “bad”?

It's not just about the rate. There are other factors that can make a difference:

• Collateral : Many institutions will ask you for collateral (such as property or accounts receivable). Understanding what you're putting up for grabs is key.

• Interest rate : Is it high or low? It depends on how the bank views you. If they consider you risky, it will be more expensive. If you're financially sound, it will be better.

• Term and structure : Paying over two years with fixed payments isn't the same as paying over five years with a tiered structure. This is where financial design comes into play.

📈 How to improve your conditions?

A company or project with clear information, well-explained flows, and control over its operations is much more likely to obtain credit on better terms.

Some key points:

• Have well-prepared and up-to-date financial statements : Banks won't lend to people they don't understand. You need to have your financial statements in order.

• Showing a clear and reasoned use of credit : explaining what it is needed for, how it will be used, and how it will be repaid makes a big difference.

• Present realistic projections : Having a clear vision of future flow builds confidence and demonstrates preparedness.

• Knowing your borrower profile : Understanding how the bank views you—in terms of risk, guarantees, and track record—allows you to negotiate better or prepare before applying.

💡 Real-life case: How well-taken credit drives growth

A much-cited example is Netflix , which financed part of its global expansion with well-designed debt. It negotiated rates and terms that allowed it to invest in original content without compromising its daily operations. Debt didn't hold them back; on the contrary, it was their growth engine .

At Valoryium, we believe that financial intelligence starts with understanding that not all credit is good simply because it's approved. Financing must be aligned with your strategy, your capabilities, and your pace . That's the difference between growing in an orderly manner... or taking risks that can backfire.