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Practices That Will Get You a Business Loan Faster

By Finserv MARKETS - Aug 23,2019
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requirements for business loan for new business

Introduction

The time is ripe to start a new business, revamp your existing enterprise, launch or expand to new locations. You probably have an idea that is ready to take off or wish to revamp your business, buy new equipment, increase working capital or sway customers in your favour with a creative marketing campaign. If you have to outperform your competitors, time is of the essence. You have a business plan and strategy in place, and the only thing left is raising funds to execute those plans. It is especially a great time to enter the borrowing market as a small business owner since the regulatory bodies are encouraging first-time borrowers.

A Business Loan can provide you with the funds to set up your business and get things going. As an entrepreneur, you already have a lot on your plate: client meetings, deadlines and growth. You can make sure a business loan is not added to your list of worries, by following some simple guidelines.

Documentation is a necessity, a skill and a saviour

These are the basics. Be on-point with your business loan documents and documentation. Lenders don’t like to waste time over fundamental formalities either, so make sure all your documents are in place at all times. Start with the basic individual documents namely PAN, Aadhar card, Passport, Voter’s ID and Driving licence. Take it up a notch with Income Tax Return (ITR) Forms and bank statements for past 6 to 12 months. Move on to the company papers. PAN for the company, a business license if needed, computation of income, balance sheet and Profit & Loss account for the last 1-2 years should be kept handy. If you get all financials certified or audited by an accounting professional regularly, these shouldn’t be a bother.

Make sure everything is in place with regards to your documentation, and your chances of loan approval go up, while the processing time goes down. There might be other documents required like GST credentials, or Sole Proprietorship declaration/copy of the Partnership Deed. Remember, as far as possible, get copies certified.

Nothing says credibility like a good name, great work and a strong cash flow

If your business has a good reputation in the market, lenders instantly feel better about attending to your loan request. Constant and consistent profits are a great reflection on the business and by extension, your application. If you have been earning profits for the last couple of years, you’re set. Apart from that, it is important to remember that cash flows are the lifeblood of any business. Your payments, receivables and accounts should look robust.

The critical point is that bankers would go for someone with a spot-free track record, much as you would choose an efficient banker.

Get the collateral up and ready

For smaller amounts, collateral-free business loans are a popular choice, you might need to provide security for loans of larger amounts. If you want a low business loan interest rate, you might consider the collateral-based loan.

Certificates of deposit (for stocks), treasury certificates (for investments), bonds, receivables, machinery, real estate, jewellery, equipment, and insurance policies are assets that can be pledged to take loans. The amount of the loan offered depends on the value of the collateral.

To ensure a smoother process, ensure you have the proper and complete documents with clear titles of ownership.

There’s also a way for you to skip the collateral altogether: with the Bajaj Finserv Business Loan, self-employed individuals/businesses can avail up to Rs. 15 lakhs, without having to put up any collateral for an unsecured loan! Finserv MARKETS can help a step further, with tailor-made Bajaj Finserv pre-approved loans to meet all your financial requirements and an application process that gets you an approval in 3 minutes and money in your account in 24 hours.

To expedite the process even further, you can look at options online. If you choose a credible platform like Finserv MARKETS, you can also avail custom-made online Bajaj Finserv Business Loans with flexible repayment tenures and access to your personalized Financial Fitness Report.

Conclusion:

Do not let the lack of funds prevent you from bringing your extraordinary business ideas to life. Keep these tips in mind, and conduct your business passionately. The money will be yours in a jiffy.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522