Bajaj Fineserv Business Loan

A business loan is commonly used for business purposes to meet the needs of your growing business. If you want to expand your existing business, boost production or the machinery then business loan provided by the banks and finance companies seems to be the best option. Thus, business loans are available at attractive interest rates over a specific period of time. Business loans can be categorized into several types, such as:-

• Bank loans.
•  Asset-based financing.
• Advance business cash.
• Mezzanine financing.
• Invoice-financing.
• Cash flow loans.
• Micro-loans.

For most of the business loan applications, the credit score is always taken into consideration. On the other hand, your credit score will also affect the interest rates and other terms of the loan. Each lender of the business loan has its own set of credit score requirements for approving it such as:

• 680 or higher for traditional bank.
• 630 for equipment financing.
• 600 for short-term financing.
• 550 for merchant cash advances.

For small business owners, getting business loans is the major problem due to the tight lending standards given by the bank and finance companies. Applying and approving business loans can be an easy process if you are prepared with these 5 steps:

• Ask yourself, why you need the business loan like for starting the business, managing the business expenses, grow the business, and for safety cushions.
• Determine which type of business loan is beneficial for your business and fulfill your business requirements.
• Find out the best way to qualify for the business loan such as the credit score, income, modes of payments, and many more.
• Gather all of the documents needed by the lenders for approving your business loan without any hurdles.
• At the final phase, submit the online application by filling all the requirements, upload the documents, and get sanctions within a few working days.

If you have a small business and applied for a business loan of a high amount, then it might be rejected by the lenders. Yes, you can get a business loan with no money, but first, you have to understand why the lenders care about the cash flow in your business for approving the loan.For approving the loan with no money, you have to qualify for the financing solution available to you and focus on saving and running a lean business. Follow the 3 options for approving the loan with no money:

• Business credit cards.
• Equipment financing.
• Invoice financing.

In the whole business availing process, the repayment mode of the business loan always seems to be an important step. The lenders like banks and financing companies who approve loans always make sure that the borrower can repay the whole amount on its fixed tenure. If you are not repaying the loan, then it will increase will debt as well as credit score.

The repayment mode of the loan can include both the principal and interest. Go through the following modes of business loan repayment to make the loan payment process easier.

• Post-dated cheques.
• Standing instruction.
• Electronic clearing service.

Whether you are applying for a business loan through a bank or a financial institution, you should familiar with the requirements of all lenders. When you are fully prepared, then qualifying for the business loan is an easy process as well as save your time and frustration. Below points define the basic steps which help you to get the cash you need to grow for your business.

• Maintain a well-defined credit score.
• Determine the lender’s requirements.
• Gather all the financial and legal documents.
• Plan and develop a strong business strategy.
• Provide the necessary collateral to the lender.

A business loan is an unsecured loan that is commonly used for bearing the expenditures in the business. To avail the funds in the business, the borrower does not need to mortgage any of their assets. Moreover, the process of applying for business loans online is very simple and easier. The following steps define it precisely:

• To apply it, first, you need to fill up the business loan application available on the website.
• Fill all the essential information in the application form related to business loans.
• ubmit all the relevant documents required by the lender to complete the fill up the process.
• After the whole process, the loan is sanctioned in a few days or a week and sends you the money in your bank account.

According to the recent market research, it has found that the minimum loan amount offered by the banks and finance companies in business loans is 1 lakh rupees and the maximum limit of the loan is as high as 40 lakh rupees. If you want to borrow an even higher amount of loan, then consult with the bank representatives regarding it.

After the loan is approved, you need to make yourself by paying the installments on time. Once the lender feels that you safely pay all the loan installments, then you got a chance to apply for a higher amount of business loan.

However, the business loan approval or sanction process will take a lot of preparation and documentation, but it is worth once you sanction the loan to fulfill all of your business requirements. Generally, the business loan will take from a few days to a few weeks for approval.

But in reality, the whole sanction process of the business loan completely depends on the loan lender or provider. If you are providing all the necessary documents and fulfill all the eligibility criteria of the business loan to the banks or finance companies, then the sanction process will not take longer than a week.

You can take up to ₹ 75 lakhs and more depending on your credit score.

Business loans can be used for many purposes which are relating to business operations. During the sanction of business loans, security things are used for depositing as a guarantee that a loan will be paid in full. If the loan is not paid in its tenure, then the security will cover the loan amount.

For the business loan, the property is used as a common asset for security that would be residential, commercial, or even rural property. Subsequently, many lenders will accept the balance sheet of the business as a security for the business loan such as the vehicles and equipment.