4 Steps To Take Before You Apply For A Business Loan
Business was good for Hamid, the owner of a gift shop in New Delhi. But then a larger store opened in the same neighborhood. This started affecting his business. Hamid was desperate to save his shop. So, he decided to shift the store to a larger space in a nearby mall. He knew he had the capacity and the manpower to pull off his dream. But he lacked the financial resources. So, he decided to apply for a business loan. He believed this would take his fortunes a step ahead. He had a sharp financial mind and knew the tricks of the trade. This helped him in getting a business loan. Within weeks, Hamid set up his new store at the mall.
Are you also looking to start or expand a business? You can apply for a business loan. Here is how you can ensure the application process is smooth and hassle-free.
4 Easy Steps to Get a Business Loan Quickly
Prepare a Business Plan:
The first step begins with you. Start by doing your research and preparing a budget. It is important that you create a good business plan. Devote enough time to this step. Your odds of getting the loan will increase if you have a good business plan in place. Include your business vision, your trade possibilities, and your skill set in the plan. You need to convince the lender that your business has the capacity to grow. Also, figure out how much you need to borrow. A budget comes in handy here. You may be eligible for a larger loan. But take only as much as you need. Remember, a loan is not easy money. It is also a financial liability for you.
Compare Other Loans:
Lenders like Bajaj Finserv offer business loans on attractive terms. But it is important that you compare the available options. This may give you a good idea about the prevalent trends and the repayment schemes. You can even compare different loans online. Once you have all the information, take your pick. This can help you choose the business loan that is most suitable for you.
Check Your Credit Score:
Your credit history can play an important role when you apply for a business loan. So, check your credit score beforehand. To do this, you need to visit the official CIBIL website. Suppose you find your score is on the lower side. Then you should try to clear your pending dues. Close any pending loans you may have.
Apply for the Loan:
The last step is the most important. You are now ready to apply for the business loan. By now, you have already done the background work. So, getting the loan can become a lot easier for you. You can apply for the loan online. You can also check your eligibility for the business loan. Find out about the documents required for the business loan on the lender’s website. Fill in the application form. Check that you have not missed any fields. Then submit the required documents. Now, you need to wait for the lender to get back to you. Do not apply for multiple loans at the same time, though. If lenders reject your loans, it may lower your credit score.
Also Read : 5 Important Documents For Business Loans
Eligibility and Documentation:
To be eligible for a business loan, you have to be over the age of 25. You must have a limited or private limited company. Or it could be a partnership or proprietorship firm. You could even be a self-employed professional.
To get a business loan, you need to submit the following documents:
- Business vintage of three years
- Certificate of practice
- Bank statements of the preceding month
- KYC documents
Are you clear about how to get a business loan now? Keep these tips in mind when submitting an application.