How to get a small business loan to start a business

HOW TO GET A SMALL BUSINESS LOAN TO START A BUSINESS

Phone: 07949067349

Web: Lendingkart.com

ABOUT LENDINGKART Lendingkart Technologies Private Limited is a fin-tech startup in the working capital space. The Company has developed technology tools based on big data analysis which facilitates lenders to evaluate borrower’s credit worthiness and provides other related services.

Lendingkart Finance Limited (formerly Aadri Infin Limited), is a non-deposit taking NBFC, providing SME lending in India. The Company aims to transform small business lending by making it convenient for SMEs to access credit easily. The Company uses technology and analytics tools, analyzing thousands of data points from various data sources to assess the creditworthiness of small businesses rapidly and accurately.

Lendingkart Finance Limited, unlike banks and other NBFCs,do not focus on vendor’s old records (Past Financial Statements & Income Tax returns) to evaluate the credit risk profile of a potential client.

The NBFC focuses on the client's current year’s cash flows and business growth. The objective is to make capital funds available at finger tips so that entrepreneurs can focus on business instead of worrying about gaps in their cash-flows.

We are currently based in Ahmedabad, Bangalore and Mumbai but we serve across India.

Phone: 07949067349

Web: Lendingkart.com

Small Business Loan to Start a Business For a new entrepreneur, one of the biggest hurdles to resolve and overcome is the need for capital. Funds are critical to any business venture. Finding ways to raise money can sometimes become a fulltime occupation for a business owner. A business loan can be a very important supplement to the life blood of a company.

There are many ways that startup capital can be raised. There is the option of:

Phone: 07949067349

Web: Lendingkart.com

• Going for a bank (most bank offer small business loans these days) • Exploring and applying to non-banking financial institutions • Using alternative methods such as crowd funding • Approaching angel investors and venture capitalists For most new businesses the preferred method out of above is to apply for loans with banks and other alternative lending institutions.

How to Get a Small Business Loan to Start a Business As a startup or a business idea in a nascent stage, the best bet to raise funds lies in non-banking financial institutions. It’s recommended to direct one’s energies towards acquiring capital from alternative lenders rather than traditional banks.

Most banks prefer to give loans to small businesses that are already in existence as opposed to someone who is just starting out. Banks prefer to cover risk and it’s for this reason that the documentation and evaluation processes are long drawn and rather stringent. For a new business, sometimes it can be difficult to meet all requirements.

This greatly affects the chances of getting the loan approved.

Coming to alternative lenders, they make the process rather hasslefree and easy to get through. Some of the advantages that nonfinancial banking institutions offer are: • Slightly more flexible requirements and eligibility criteria Phone: 07949067349

Web: Lendingkart.com

• Possibility of applying online very quickly • Quick turnaround time on loan approvals • Instant loan disbursement after approvals Amongst all these the leniency on the eligibility criteria as well as requirements are the most beneficial.

It is helpful to have lenders who will be willing to consider giving out money to owners who may not have a detailed and long credit history. Your top pick should be lenders who focus on your business idea and go-to-market strategy rather than those who focus on cash flow history. Armed with a solid a dynamic business plan, the loan can be applied for still.

Phone: 07949067349

Web: Lendingkart.com

Process to get a Small Business Loan to Start a Business There are different types of business loans available and depending upon the requirement of the business, a relevant one can be sought and applied for. Some popular options of business loan include working capital loans, startup loans, cash advance loans etc.

The first step is to determine how much money is needed and what it is needed for. This will go into the business plan that will be evaluated during the loan approval process.

Once the amount has been determined, the next step is to do some research and seek out the available options in terms of lenders in the Phone: 07949067349

Web: Lendingkart.com

market. Choosing a lender is also a process that requires time and effort. Things like credibility of the lender (reputation in the market), interest rate being offered, support system on offer, options of how loans can be re-paid, process of loan application etc. need to be factored in before choosing the one(s) which would be applied for.

Once identified, the next step is to get all the required documentation ready and up to the mark. A great business plan which details out information about the business idea, the profitability of the idea, the scaling plan, the vision behind the idea, projections regarding staff and infrastructure as well as the marketing strategy. A clear and transparent business plan goes a long way in putting the odds in the favorable position.

The final step is to apply and go through the process.

As mentioned, the turnaround time with non-banking financial institutions is rather quick and if all is okay, the loan should come through within a fortnight or less.

Of course, if you have a business that is already 6 months old or more and has a revenue of INR 12 lakhs or more, you can always apply for a working capital loan at Lendingkart!

What do you think about this article? Please let us know in the comments. If you need to know more about how important it is to choose the right business loan, you can read our article here. We have also written in detail about small business financing options in India and you can read about it here.

Phone: 07949067349

Web: Lendingkart.com

Phone: 07949067349

Web: Lendingkart.com