Blog

Feature Image

HOW YOUR START-UP SURVIVES WITH THE HELP OF BUSINESS LOAN

Posted on Monday December 24th, 2018

Start-up is the new trend that are contributing a major part in the India’s economy and empowering the country. Our youth has been the major force behind a number of start-ups in the last couple of years. Every ambitious individual thinks of start-up idea and to transform this idea into a full proof plan like building a successful business, it needs a list of things along with lots of passion which can keep one motivated. Every new entrepreneur has to struggle a lot to build up a new name and presence in the commercial market. The most common challenges that every start up face are difficulty in accessing finances for operating capital, high labor costs, lack of marketing knowledge, excessive rules and regulations, less knowledge about the existing market and rules and norms regarding taxes. Either your venture is big or small, capital is the important thing needed to start a business, so before stating any new business, be sure about the source of capital, list of expenditures, income, profit and the frequency of cash inflow. A start-up business loan is a common option available through many banks and NBFC’s. ShubhBank guides you “How Your Start-Up Survives With the help of Business Loan” and provides you the funding you need.

Start-up business loans are traditional sources of small business funding as opposed to crowd funding and investors. It allows business owners to work with lender to offset the financial burden involved with starting any new venture by offering funds for necessary purchases that could not be afforded or would create a significant use of funds that may need to be spent elsewhere. There are different types of start-up loans including a line of credit, equipment financing, recruiting employees, business set up etc. Line of credit is ideal for the businessmen who will need to make several purchases over time, but don’t have cash readily available at their side. The equipment financing may be ideal for entrepreneurs who need to purchase expensive machinery that will make their product/service more profitable over time. If you are starting a new business, especially if you have good credit score, so it may be worth to look into start-up loan for funding options. The list of specification to be fulfilled for a start- up is business entity, age of company, annual turnover of start-ups, highly innovative product/service etc. You must have a clear and detailed loan proposal before approaching the lender to avoid the risk of rejection.

An entrepreneurship is the latest craze in the era of development and innovation. So the start-up loans are common phenomenon for every new enterprise. The basic criteria’s are more or less the same for every financial institution such as age of 21 to 60 years, positive net worth, ITR slips, PAN card, ID proof, audited balance sheet of last 2 years, structured repayment etc. Adding capital to yourbusiness can be wonderful for its growth. It is a better source of funding for a profitable business and converts your idea into a potential earning venture. The ease of taking a loan through ShubhBank makes us best among others in tricity. So make a visit at our branch or apply it online and use the borrowed funds to make handsome profits.