Factors Affecting Amount of Business Loan You Get

Factors Affecting Amount of Business Loan 

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24 Sept 2020

There are various factors that contribute to the success of a business, but perhaps one of the most important of these is a steady flow of finances. Every business requires a sufficient amount of working capital to thrive and needs financial assistance to meet its day-to-day business needs. These needs are best served by the means of reliable business loans such as those available on Finserv MARKETS.

Having said that, no two businesses are exactly alike and hence the business loan amount they may receive can also be quite different. To know more about the factors that determine the exact amount of funding for a business that might be approved, here is a closer look:

Credit Score

Credit scores and credit history are largely accepted as the most effective means of assessing the credit trustworthiness of a borrower. It is a numerical indicator of the degree to which a borrower can be relied upon to make his or her repayments.  Hence, credit scores play a huge part in determining the amount of  business loan or small business financing that a lender might approve for your business.

Overall, you might have an easier time procuring the ideal funding for your business if your credit score is positive and on the higher end. Credit scores range from 300 to 900 and the recommended CIBIL score for getting your new business loan is 750 and above. For those seeking small business loans, it might be useful to make regular repayments and establish a good credit score in these early stages of your business.

Cash Flow

While business loans are availed in order to meet business requirements, lenders also need to form a fair idea of how finances have been managed in your venture so far. That is why your company’s cash flow is an important component of determining the amount of required funding for your business.

When considering the business and small business loan amounts to be approved, lenders often want to ensure that your company has a history of positive cash flow. This indicates that your company can manage its expenditure effectively and not prove to be a liability in the future.

Business Plan

One of the most efficient means of ensuring that a business is capable of making repayments in the near future is by taking a look at its business plan. An ideal business plan should include market analysis, marketing strategies and a financial overview of past, current and future projects. It should also include a strategy for making your business loan repayments over time.

That is why business plans are an important point of consideration for lenders when they approve  business loans and small business financing. If you are launching a new venture and are looking to avail a new business loan to get started, a sound business plan will go a long way in helping you secure the loan amount you need to meet your business requirements.

A good business plan can help convince lenders of the clarity of your business decisions, and offers assurance that there will be regular business loan repayments in the future. That is why a business plan is one of the mandatory requirements for any lender offering funding for businesses.
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To find the best lending options for your venture, look no further than the business loans and small business loans available on Finserv MARKETS. can be approved in just 3 minutes flat and the amount reflected in your account in just 24 hours. These business loans offer loan amounts of up to Rs. 30 Lakhs and a seamless loan application process that takes place entirely online. What’s more, the business loans available on Finserv MARKETS require no collateral and offer you the option of flexible repayment tenures ranging from 12 months to 5 years.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.