Business Loans
Apply for loanBack then, applying for a loan was a nightmare, and relatively few people resorted to them. Cut to today, changing times and strides in the business environment have made borrowing funds for business growth a norm rather than an exception. Just like how blood flow regulates our bodily functions, the flow and influx of finances regulate the activities and functionalities of business conduct.
The rapid increase entrepreneurial dias has led to skyrocketing applicants for business loans. But even those with established businesses stumble upon obstacles and resort to borrowing. Whatever the reason and however big or small your venture, business loans are available for all to apply.
Purpose of the loan
There are several avenues in business that might push you to consider opting for a loan, such as inventory, buying new equipment, purchasing new premises, marketing expenses, and others. What these predicaments also translate into is whether the loan is short term or long term.
Eligibility criteria for business loan applications
The approval and sanctioning of business loans undergo rigorous assessments. In the general scheme of things, these assessments entail the eligibility criteria of age, business experience, tenure, processing time and credit worthiness of the entrepreneur.
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Age
The age bracket for availing business loans ranges from 24 years to 65 years.
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Current Business Experience
Today, the business environment is dynamic, and the current tide is likely to differ drastically from what it was five years prior. With that said, as a benchmark, the current business experience spans over three years. The lending institutions would evaluate these three years to valuate the business activity, including the growth. When applying for loans, borrowers should ensure that their business activities exhibit sustainable billings and revenues over the three years.
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Total Business Experience
The total business experience, if over five years, would make for a business credit report. A business credit report applies to those ventures who have been operational over a certain number of years. It makes up the financial and operational aspects of the business over that entire period and includes profit-and-loss accounts, balance sheets, cash flow statements, and tax returns.
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Collateral
This is where the borrower puts up his or her assets as security against the borrowed funds. The things that borrowers can put up as collateral are stocks and bonds, home equity, inventory, receivables, and personal property.
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Tenure
Tenure ranges between 1 year to Maximum 5 years.
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