Feature Image

HOW TO GET AHEAD WITH BUSINESS LOAN APPLICATION CHECKLIST

Posted on Wednesday August 12th, 2020

Taking out a business loan has its own pros and cons but one have to balance the benefits of receiving the funds to grow their business with factors like hidden fees, strict tenure and added interest. Applying for a loan is a big decision and it is always advisable to make a checklist to ensure that you are filing the application efficiently as it may include a lot of required paperwork. In this article, we will discuss about how to get ahead with business loan application checklist to expand your knowledge on a deeper level. Now check off the individual factors listed below before making a file for your business loan application.

-> Borrower Profile: There is a borrower information form which is used to fill out the borrower’s profile interested in taking a loan. It includes some details related to loan seeker’s contact information, business principles, loan intent, company’s profit and loss or any outstanding loans.

-> Personal and Financial Background: If you are a business owner or general partner, you’ll have to complete a personal and financial background statement. Generally, every lender wants to ensure that the personal credit score provided by you is legitimate before approving you the loan money to improve your business. This form requires your personal details like phone number, address as well as declaration of your financial assets, giving the lender an idea of your current approximate net worth.

-> Financial Statement of Business: Business Financial Statement reflects your company’s income, expenditures and how you manage the working capital. It can be a great opportunity to make sure that your intended revenue is adding up. Therefore, before you Apply For Business Loan create a business financial statement that includes all the assets and liabilities as they pertain to your business finances.

-> Income Tax Returns: The income tax return is the important key to get approved for a loan. To complete the checklist, you’ll need to provide the income tax returns for the past two or three years. Before submitting it to the lender, make sure to sign it and to feature the correct information.

-> Business History: A business history is an important aspect of your application checklist which is used to communicate your business visions and goals. It is significant as the lender want to know how you’ll your business loan money and asks for layout of your business plan to verify legitimacy. Nowadays there is an option of Online Business Loan that most of the lending institutes are providing to their customer to save their valuable time and to run out their business operation smoothly as applying online loans will get you the quick approvals and faster disbursal.

-> Legal Documentation: It is smart to carry any legal documentation pertaining to your business as lender could request for it any time. You will need an additional legal documentation such as articles of incorporation to legal agreements and contracts at some point in your journey for getting a business loan.


Feature Image

HOW TO PICK THE RIGHT BUSINESS LOAN TO ACHIEVE SUCCESS

Posted on Monday July 13th, 2020

If you want to own a successful business or want to make your existing business successful, a regular cash flow is a part and parcel for every company to start a profitable business. The common reasons for which a company needs funding can be purchasing a new machinery, wages payment to the staff, buy an office space, bring down the existing debt or to expand the pre-existing business. Therefore, to get the funds, there is a large marketplace for business loans as corporate sector plays a significant role in contributing the GDP of the country. Nowadays, the demand for business loans is increasing; hence financial institutions are making it easier to avail funding for businesses. Here are few tips to tell you that how to pick the right Business Loan to achieve success.

TYPE OF LOAN: There are different types of business loan available in India for small businesses which are mentioned below:

• Working capital loan.
• Term loan.
• Machinery loan.
• A business line of credit.


So, to avail the benefits, you first have to decide about the type of loan you need. If you need to purchase new or upgraded machinery/equipment then you can opt for a machinery loan, if you need to pay out wages or want to expand your existing business then you can go with working capital loan. When you know about such options, these always work the best when you Apply For Business Loan. Always research them one by one and opt for best suited at last.

THE RIGHT LENDER: When you are trying to plan for a loan, you will come across many lending institutions offering number of benefits. But if you really want to secure best option, it needs sometime. You need to research for various lenders by going through their websites, customer reviews on their portal. Always compare them on the basis of interest rates, quantum offered and tenure to repay the loan. ShubhBank is trending lending institution who provides Online Business Loan to fulfill all your requirements.

DOCUMENTATION: When you apply a loan, every lender will ask you about business’s cash flow to ensure them for repayment. It is every borrower’s responsibility to provide correct documentation to avoid rejection of loan application. Having a robust business layout showing the potential growth and profit can help you to get approved for loan. The other important factor to know is eligibility criteria. Try to opt a lender with minimum eligibility criterion as gathering all the required documents may be tough at that point of time. Some of the documents required are given below:

• Existing business details.
• Previous year’s Income Tax Returns.
• Proof of identity- PAN card, address proof, voter ID etc.
• Last two years bank statement.
• Commercial and residential property documents.


At last, selecting a right business loan is important for every business’s success. So be a smart, choose the best loan product available in the market and make an informed decision. Hence, a right financial partner can contribute to your growth in business.


Feature Image

APPLY FOR BUSINESS LOAN ONLINE TODAY!

Posted on Friday February 21st, 2020

If want to business for yourself or working who was the new plan but do not have the capital you need to invest in your work then a business loan is the perfect solution for you. What people complain about while thinking about business loans is that they might get cheated or about the Business Loan Interest Rate or the loan processing time will take months while they lose out on their dreams. No more do you have to face problems as you can apply for a business loan online nowadays.

Eligibility criteria for applying for a business loan

First and foremost you must check the Business Loan Eligibility to see if you stand a chance to even apply for taking out a loan. The eligibility criteria can differ from company to company but some of the basic criteria are as follows:

● Self-employed individuals who are both professionals and non-professionals can apply. Self-employed professionals mainly included doctors, architects, chartered accountants, etc cetera. Self-employed non-professional includes individuals who are traders and manufacturers, etc.
● Entities can also apply for a business loan. They include partnerships, private limited companies, limited liability partnerships, etc cetera.
● The companies who are giving out the loan may ask the businesses to prove that they are making a turnover of 40 lacs minimum per year.
● a minimum of 3 years of experience in the current business must be required for which the loan is taken out.
● One must also have a minimum of 5 years of total business experience.
● The business must also be profitable and one may be asked to provide the details for the past two years.
● The minimum annual income must be not less than 1.5 lacs per annum.
● The applicants must be at least 25 years of age and cannot be more than 55 years.
● The IT returns for the past 1 year must be filed properly.
● Lenders can choose to offer to give out the loan depending upon your geographical area as well. Check if such clauses are mentioned by the company from which you will seek out your loan.

Documents you have to produce to be able to apply for a business loan:

● The PAN card for the company, individual or the firm.
● Photo identity proof
● Address proof
● Past 6 months bank statement
● The latest income tax return along with the income balance sheet that has been computed which will also have the profit and loss account for the last 2 years.
● Proof of continuation is also required
● Certified copy of the partnership deal of your company or the sole proprietorship declaration.
● You may also have to produce the certified true copy of the memorandum and the articles of association.

Apply for Business Loan Online from anywhere. No more do you have to stand in long queues and wait for days for your documents to get verified. Just log on to the website and click the business loan option. Fill the details and you will be ready to go.


Feature Image

FEW REASONS FOR BUSINESS LOAN REJECTION

Posted on Friday January 17th, 2020

A business loan is a boon for small businesses and start-ups but rejection on this loan is a matter of financial nightmare. In recent times, the number of approvals on corporate loans has decreased drastically due to the risks attached to it such as NPA has made lenders more and more harsh and cautious towards the approval of application. So ShubhBank is here to enlist Few Reasons of Business Loan Rejection you have to take care to apply for business loan.

Poor Credit History: Lenders always evaluate your business credit score while deciding on your loan application. If you have any negative remarks on your credit report then it may directly lead to rejection of your loan application. So a good credit rating is utmost for direct approval of your loan whereas low credit score increases the chance of rejection or you may end up in paying higher interest rates on loan quantum.

Lack of Collateral: A high quantum business loan is a secured loan which means these loans are usually backed by some collateral. The value of loan money is directly proportional to the value of collateral or security. If you default on repayment then lender has right to use that collateral to recover their loan money from it. However, in case of new ventures, it is more difficult to Secure a Business Loan as they do not possess any assets.

Overall Business Turnover: The overall turnover of your enterprises is one of the key parameters that come into play when lenders decide on your loan application. The evaluation of cash flow in your business will determine your repayment capacity and in case of poor cash flow, lenders will reject your loan application.

Age of Business: Most of the lenders evaluate the duration for which your business or organization has survived in the market while sanctioning the loan application. Every lender looks for at least three years of business presence to approve your business loan in one go. Apart from this, you are also asked for two years of IT returns to ensure the profit consistency of the firm.

Somethings to keep in mind after rejection of your business loan
• First and foremost, evaluate and figure out the reasons why your loan application was rejected. If the reasons are rectifiable then correct them at the earliest and re-apply for business loan.

• Secondly, the rejection of your loan application may adversely affect your credit score. You must exercise in building up your credit score as early as possible as it will determine your future credit capability.

• Lastly, you may consider a searching for other funding options can be taken other than a loan from traditional financial institutions.

Getting a business loan is a great step towards extending or growing your business and they are usually ideal for meeting your working capital needs or upgrading the new machinery for operation units. Taking above mentioned reasons in consideration, you can get an instant e-approval on your business loan from ShubhBank after successful submission of your loan application.


HOW DIGITAL BANKING IS A GREAT IDEA FOR YOUR BUSINESS GROWTH

Posted on Friday February 22nd, 2019

If you are a businessman and looking for a financial support for your business, then you must be aware that traditional bank loans are not only the source of availing a business loan. Nowadays the new and trending way for availing a business loan is digital banking. It is the new way of borrowing a loan which has features of fast business loan that is simple and easier. The days are gone when availing a loan is a cumbersome process and you have to go through hassles. The lending companies have spelled their magic with progressive digital growth and getting more advanced with every passing day. It is the perfect financing solution for budding entrepreneurs who live with a scarcity of time. The traditional way of loan will let you to wait for long to get business loan disbursed that will be a destructive factor for the growth of your business. With digital banking, you can enjoy the advantage of “Fast Loan Approval“. There are many other advantages we have discussed for which the entrepreneurs opt for digital lending:

ONLINE ACCESS: The online business loan provides you with an access to your online credit account. It means with online loan, you have right to access your loan account to get each and every piece of information regarding the loan any time.

FLEXIBILITY OF CHOICE: The flexibility of choice is the greater attraction of an online business loan. The digital lenders provide you the more flexibility in terms of loan disbursal as well as repayment options. The loan quantum depends upon the need of the applicant and his/her eligibility.

COST: There is no such difference between the cost of digital borrowing and traditional borrowing system. If you opt for an online portal to apply for a business loan, you will get an option to choose between the perfect lender that suits to your requirements and throws a best deal. This way, you can save a great amount of money and time.

FAST PROCESSING: The digital banking has the most appealing feature of faster processing of loan. While applying online, you can avail instant business loan and doesn’t need to wait for long time to get the loan sanctioned through banks. Getting a delay in loan disbursal can be hazardous for the survival of business, so applying online can help you to get the loan approval within few days.

EASY APPROVAL OF LOAN: If you are a businessman that is not for so long in market or you are a budding entrepreneur then getting your business loan approved from traditional banks may be a challenging task. Then online business loan is the best and easy way to avail financial support when you are in dire need or your business is at budding stage. The availability of loan depends upon the eligibility criteria’s and the provided documents.

The online business loan may be little costlier but the speed of disbursal and its convenience makes it a practical solution for many businessmen. The advantages you can get from an online loan are beyond the measures of time and hassles. So if you are in need of business loan and searching for best online lender in the market “Apply For a Business Loan” at ShubhBank.


Feature Image

ENTREPRENEURIAL FINANCING – THE BEST SOURCE FOR THE GROWTH OF THE INSTITUTION

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. .