Mahesh is an enterprising small business owner. He mainly works with clients around his current location in Mumbai. Due to his stellar work and level of professionalism, his business has been expanding at a fast pace. However, Mahesh is overwhelmed with the quantity of work coming in, and this constant worry has started to impact his stress levels. He wants to expand his current operations by hiring a few talented individuals and acquiring new office space. He also needs to integrate some more tech capabilities in his current offerings.
To support Mahesh and the many other small business owners in their expansion plans, digital lending platforms such as Finserv MARKETS are offering competitive loan products such as the Bajaj Finserv business loan. Business loan interest rates are competitive and ensure that medium and small enterprise (MSME) founders can access cash for their growing needs.
These lenders are helping ensure funds for new-age tech-driven startups and other businesses and arriving at their loan eligibility by assessing the credit scores of their applicants. However, with any loan application, lenders can reject the application due to red flags. Here are a few things that you as an MSME founder can consider to ensure a go-ahead from your lender on your loan.
Lenders are constantly looking at assessing data points to decide on your business loan eligibility. As an MSME owner, you should make a slow transition to conducting business digitally or at least recording your transactions in a digital format. The use of technology in business and assessing repayment capacity will soon become a given and adopting it earlier can help you ensure that your loan approval rate is always high.
As an MSME founder, you might even find it easier to integrate tech into your operations as the enterprise is currently at a growth stage. Larger enterprises often face stagnancy after a point and find it difficult to make these integrations. Lenders can access MSME data and evaluate eligibility in a quick and efficient manner with digital records of transactions. Going digital could open up new avenues to accessing credit for your enterprise.
Get the right documentation in place
A decade ago, accessing a business loan was pretty much a nightmare for borrowers. With lengthy procedures and excessive documentation requirements, borrowers often found it difficult to crack the code on getting loan approval. Now, with the onset of tech-enabled lending platforms such as Finserv MARKETS, you can easily take on a business loan within a few minutes. With minimal documentation requirements, these lenders ensure that you have a quick and hassle-free experience.
You have to simply upload documents such as your bank statements, PAN card, business registration proof, and a few other requisites on Finserv MARKETS, for example, for getting loan approval in minutes. The loan amount can be disbursed to your account within hours. In this endeavor, having your documents available in a digital format and ready to upload can help you save time and speed up the approval process. If you do not have the required documents, make sure that you do before applying for a business loan as rejection could reflect poorly on your credit score.
Decide on a clear plan for using the funds
Lenders need to know that they will receive their funds regularly and on time. To make sure this happens, they are careful and thorough in their assessments for your repayment capability. One of the major considerations through this process is how the borrower will use the capital provided through the loan.
It is essential to select the right loan product that fits into your business goals and expansion plans. You should speak to a trusted financial advisor or log on to a digital lending platform like Finserv MARKETS to access the right advice and make accessing your loan a smoother process.
Read more about CIBIL MSME Rank
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