6 Easy Steps To Get a Business Loan

Ghaziabad in India is enlisted among one of the fastest-growing cities by the UN. The city’s economy is dependent on industries that are generating a lot of employment. That’s the reason why entrepreneurs prefer this location for setting up their firms. Small businesses are booming, which, in turn, has increased the rate at which business loans are availed. 

Financial institutions have offered almost Rs. 24 Lakh Crore worth of loans in the year 2018 to the corporate sector. The reason for this hike can be owed to the city’s connectivity with Delhi. The reasonable interest rate offered by various NBFC’s is also adding to this growth. 

Necessary information to apply for a business loan must be ready with the prospective borrower. Business loan in Ghaziabad can only be sanctioned if the business fulfils some essential eligibility criteria.

The below-mentioned six steps for availing business loans can act as a guide for the new entrepreneurs.

  • Decide on your loan requirements

Various types of small business loans are available like equipment loan, term loans, microloans, etc. and you need to determine the type of business loan you want to avail. Some of the available options are machinery loan, WC loan, and standard business loan. Each of these loan types has unique repayment tenor and eligibility criteria. Those who are operating their firms for the past two years and incurring sufficient revenue to repay the loan amount are eligible for a business loan in Ghaziabad.  

  • Research on lenders

For choosing a reliable lender, you have to shop around. It is suggested to select at least two to three lenders so that you can compare the maximum loan amount, interest rate and tenor. Small firms often select those investors who offer low APR.

  • Compile financial statements

Financial statements need to be kept in place because lenders will review income tax returns, the capital flow of your firm and balance sheet before approving your loan. If you find any issues in your financial documents, then rectify it well ahead of time. 

The prime objective behind reviewing financial assets is to analyse debt-to-equity ratio, accounts receivable and payable. Generally, lenders prefer reports audited by a CA. Some lenders do accept business loan documents without CA review to disburse a business loan. 

  • Important documents to gather

Alongside compiling financial records, some other essential documents should be gathered too. Commercial lenders offer business loans only after reviewing these documents. Business owners may have to present identity proof, business ownership proof, trade licence, Aadhar card, sales tax certificate, etc. 

  • Outline the business plan

A crucial step to gain approval for a business loan is to outline a business plan. With a well-defined strategy, lenders understand whether you are worthy of repaying the amount or not. Learn how to furnish a great business plan to procure a business loan. Your financial statements of past projects, assets that your firm possesses and future projections should be clearly outlined to increase the chances of gaining loan approval. 

  • Keep track on credit score

Apart from abiding by the business loan eligibility criteria and documents, checking credit score is vital too. CIBIL score decides whether an enterprise is eligible enough to avail a corporate loan or not. If you are applying for small business loans, then most of the financial organisations will prefer a score of more than 750. Check your credit report to know whether you are liable to avail a loan or not.Borrowers can now choose from a large number of lending companies who offer loan tailored to the entities’ preference. However, your credit score will determine business loan interest rates and amount. So, before you apply for a business loan, make sure that you have a good credit report.

Advantages Of Business Loan App For Entrepreneurs

We all know that to set up a businesses require funding at different phases in their lifecycle. However, the most crucial stage is while starting a new business from scratch. In the initial phase, entrepreneurs look to figure out how to make optimal use of their existing resources in the best possible way.

However, the resources in hand may not always be enough. Although it doesn’t matter that how much amount of money you have you need more money and funds to perfectly set up the business. One of the ideal means of kick-starting your business is by taking a business loan. There are various business loan apps available in the market which provides the instant approval on loan.

What is a Business Loan?

Business loans are unsecured loans taken by any individuals which can be provided by any private, public banks, lenders and NBFCs. The main motto of the business loan provided by the financial institution is to support the business owners to meet the urgent requirements of money for starting a business or for growing the business. Some people say that business loans a type of commercial loans.

Why to Apply for a Business Loan?

There are various for a businessman to apply for a business loan. It may be due to buying some new equipment, maintaining new business operations, replacing the old equipment, starting a new branch of the existing business, or any other reasons.

This article lists the benefits that a business owner or entrepreneur can avail by opting for a business loan.

  • Easy Repayment Process
    Financial institutions understand the complexities involved in running a business successfully. Hence, they design their business loans keeping these complexities in mind and offer convenient repayment options as per the cash flow to avoid difficulties in financial management. Borrowers could increase or decrease their EMIs depending on the financial condition of the company. 
  • Flexibility
    Different kinds of loans cater to specific business needs. Some lenders also provide special schemes designed for SMEs (small and medium enterprises) to help them start, upgrade, and expand their business. Such schemes do not need any third-party guarantee or security. Financial institutions provide the guarantee cover.
  • Low-Interest Rates
    Banks and non-banking financial institutions offer business loans at competitive interest rates to provide the ultimate boost to businesses efficiently. The rates are decided keeping various factors in mind such as the viability of the business model and the credentials of the borrower. The existing condition of the company and the tenor of the loan also plays a crucial role in deciding interest rates. 
  • Easy Availability
    Most banks and private lending institutions have made it more convenient for entrepreneurs to apply for a business loan online. All you have to do is visit their website, fill out an online form, and discuss the loan terms with the representative. Small business loans are made available without collateral by some online lenders. You also have the option to compare quotes from different lenders and choose the one that best suits your business requirement.
  • Full Control
    Investors look to working alongside with the entrepreneur and having a say in how the business is run. On the other hand, when you get a business loan from a lending institution, there is no interference in your business. You have complete control over how you plan to spend the money as long as you can repay the loan to the lending institution on time.

If you are in need of immediate financial assistance, you can also opt for a personal loan through online loan apps. Bajaj Finserv Experia App is among the most reputed instant loan apps aimed at providing instant loans to people belonging to different segments. It requires minimal paperwork, offers quick loan processing, and saves you time. You can avail high-value loans up to Rs.25 lakh and get the money credited to your bank account within a few hours of the loan application getting approved. In addition, the app lets you access information on your active loans and closed loans, view statements, and much more all at one place.

To further simplify the process of availing a loan, Bajaj Finserv has various pre-approved offers that help you save your time and efforts. Browse through Bajaj Finserv’s pre-approved offers on personal loans, business loans, home loans, and other financial products. You can check your pre-approved offer by sharing a few basic details.