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Posted on Thursday September 20th, 2018

A business loan is typically a type of financing that can be availed by the financial institutions in order to fulfill the urgent requirements of the institution. This credit is also referred to as entrepreneurial finance. Normally, for the growth of enterprises, owners require qualitative machinery and smooth production. It basically involves generation of funds, which will be reimbursed with a certain amount of interest. There is a variety of financing including- trade cash advances, mezzanine, asset-based, micro-financing, bank credits, cash flow credits and invoice. If you require a huge amount of funds for the growth of existing employment.

Advantages of business financing
Promoters usually avail entrepreneurial funding for a variety of reasons. These may include- financing new machinery and equipment, acquire more inventories, expansion to the great extent, sustain operations and many more.
These kinds of credits sources are very advantageous for meeting the capital requirements and for the overall growth of the institution or company. Here is the quick list of advantages of availing financing are as follows-
● Flexibility
● Easy to avail
● Affordable costs
● Lowest interest rates
● Secure process
● Fast payment
● Convenient repayment options
● Sustain and growth of the enterprise

It has several advantages and promoters must assess their trading requirements before applying for this credit. It is necessary to know all the terms and conditions before applying for any type of credit in order to prevent complications in the future. After applying for the particular entrepreneurial credit, you will get immediate access to the funds. If you are looking forward to starting up new venture but do not have sufficient funds. Get a business loan for new business and raise funds for your enterprise easily.

Eligibility criteria for entrepreneurial financing
It is necessary to fulfill “Business Loan Eligibility” criteria
You can avail credit by meeting certain eligibility criteria-
● Age limit- owners age should in between 25 and 55 years old.
● Your enterprise or company should 3 years old.
● Your company’s previous year turnover must be audited by a registered chartered accountant (CA).
● Your company must have its income tax returns filed for at least last 1 year.

Documents required for entrepreneurial business
Owners or promoters must fulfill all the necessary requirements in order to obtain the growth of the enterprise.
Here is the complete checklist of documents required for business loan are as follows-
● Identity proof- PAN card/ Driving license/ voter ID card or passport.
● Residence proof- (electricity bill/ ration card/ passport/ trade license/ sales tax certificate/ lease agreement).
● Bank statement of last 6 months
● Latest income tax return (ITR) along with balance sheet and profit and loss statement for the last 2 years.
● Continuity proof.
● Audited financials of last 3 years
●Other essential documents including- sole proprietorship declaration, certified copy of memorandum and articles of association.

Entrepreneurial credit is very favorable for small-scale, medium or large scale enterprises. It is provided by the money lending companies on interest. The business loan interest rate normally varies from one financial institution to another. To apply for this credit, fulfill eligibility criteria and submit required documents along with the application form to the selected financial institution. .