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Facts about Business Loan

Businessmen are struggling to expand their business to next level due to various financial crises at various stages of their business. Getting timely finance is also a great difficult task for them. Quikrupee is an online financial portal providing business loan both secured and unsecured at a low-interest rate. This will be greatly useful various business people like traders, wholesalers, distributors, retailers to avail timely finance at right time of their business.

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Facts about Business Loan

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  1. Interesting Facts about Business Loan

  2. Overview Becoming a self-employed business man is a great reputation in the society but the problems faced by the entrepreneurs from the day one of the business is enormous. It is great challenge for a person to overcome all obstacles to become a successful business men. Even great entrepreneurs of various industries have struggled a lot of financial crisis for setting up their business and to run their daily business operations.

  3. Introduction There are various sources for business people to raise capital for their business. The most trusted source is from banks. There are various reasons why people choose banks as the best source for raising capital for their business. Banks provide lower cost of funds in the form of Business loans. There are various types of business loans at differential interest rates. It will facilitate business people to solve their financial crises.

  4. Types of Business Loan New Project Loan Top-up on Existing Loans Working Capital Loans Unsecured Business Loan Secured Business Loan

  5. New Project Loan Banks are interested in funding for new businesses and also for new projects of existing business. There are various criteria in getting new project loan and differs from bank to bank. Project loans are approved against collateral of the person like residential property, commercial property or empty land.

  6. Top-up on Existing Loans • These loans are issued for • Expansion of existing business • Replacement of old business • Diversification of an existing business. • These loans are approved for short term or long term basis to buy • goods, • machinery • Any fixed assets for the company. New Loans Existing Loans

  7. Working Capital Loans • These loans are provided for the business • To solve sudden financial crises. • To repay expenses within short durations. • To increase working capital • Banks are more interested in providing working capital loans against • Inventories, • Stocks • Receivable bills of the company.

  8. Unsecured Business Loan • Every businessman cannot afford to pledge a security in getting business loan • Thus bankers help them providing loans without any security • It is given based on their bank transactions and income tax returns, good CIBIL score, good credit history. • These loans are charged with high interest rates when compared to secured business loans.

  9. Secured Business Loan • Business loans in which companies raise their capital against any security for the bank. • It may include • Residential Building • Commercial Building • plot • Gold • Shares • Bills • Insurance • These are given as collateral to get funds for their business. • The interest rate is preferably less than unsecured business loan.

  10. Requirements from Bank Identity and Address proof Statutory legal registration Financial statement Income tax returns Financial Security Previous Loan track Litigation

  11. Identity and address proof of the company – Address proof and identity proof of partnership or proprietor business. • Statutory legal registration of the company – Whether the company is legally registered under government norms and have followed all procedures legally in setting business. • Financial statement of the company – Every bank is interested in seeing recent 1 year business transaction of the company. • Litigation – It will help banks assess the character of businessmen before providing business loan.

  12. Income tax returns – ITR helps the bankers to check the business performance, efficiency level, assets and liabilities of the company and also tax that company pays from their current earnings. This also plays a major role in deciding the loan amount for the business people. • Financial Security – It includes the fixed and movable assets of the company which helps the banker to consider providing business loans based on the asset value along with the business transactions. This also safeguards banks from the failure of businessmen that fail to repay the loan amount. • Previous Loan track – This is a very important factor considered by banks which will help them evaluate the financial condition of the business and also to check on past repayments on loans.

  13. Take Away Though business loans are found to be a great source for raising capital, businessmen undergo challenge in getting timely funds from the banks. In order to help them in availing timely loans, NBFC are also now prepared to help them with funds at various stages of their business. Banks & NBFC have also made the lending process easy, with all verification done in shorter time-span, doorstep assistance in collecting documents etc. Businesses with good cash flows & credit score can avail timely funds with much ease.

  14. Thank You Visit – https://www.quikrupee.com Call - 9840388445

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