Business owners put in a lot of their money, time and hard work to take their companies to new heights of success. They are always ready to take risks to make a mark in the industry. They also take loans with the same hope.
Loans can come from varied sources, be it banks, public funds, investors or credit unions. But, the issue is that lenders do not lend money easily.
Hence, it is crucial to understand what a lender looks for if you want to avail low interest home loans or a business loan.
How to make the process of availing of a business loan easier?
Firstly, you need to clarify why you are the proper person/organisation for the lender to lend money to. For this, here are a few things you can maintain.
- Impress your lender with your records.
1. Credit History– Well, even though this isn’t the deciding factor, but indeed the first impression that the lender will have of you. So, it is always helpful to maintain a good credit history.
2. Cash revenue– The lender will look at your revenue to ensure that you can repay the amount.
3. Future Plans– You should have a clear idea of your goal and a plan for its execution and also be able to present it to your lender in an impressive way.
4. Savings and Capital– Your savings for future use would positively impact the lenders. They may consider the savings as security as well. Thus, if you have any savings and capital already there in your kitty, use them to your benefit.
- Confident about applying? Here are the documents you must have.
Now that you know the factors you need to keep in mind before applying, we list out some important documents you may need.
1. Financial documents- Your up-to-date credit reports, cash flow, profit and loss statement are a few of the documents. You must check with your chosen financier for all the other important documents you may require.
2. Business Owners Resume– The resume of all the business owners should be attached with the application. This would help the lender be convinced of your business acumen.
3. Executive Summary– This provides the lender with a short description of your business. It would help him understand your requirements better. You can also include the amount you are requesting with it.
4. Business Profile– This contains all the information about the operations of your company. It should broadly include the type of industry, your financial records, loan proposal and your business makeup.
To apply for a loan, you need to find the perfect lender for you. There are two types of loans- Secured and Unsecured. Secured loans require you to put a part of your business assets as collateral. But, if you want to take a loan without collateral, you should go for an unsecured loan. So, if you are looking for a business loan in Delhi, determine what kind of loan you want to avail of, collect all the documents and start applying to the right lender.