If you are planning to apply for a small business loan, you will first need to check your eligibility to get one. The business loan requirements differ from person to person.
Some of the common business loan requirements you’ll need to make note of are mentioned below!
- Credit Score: Lenders will typically check your credit score when you apply for a business loan. You should be ready with a credit report and history to submit to a lender.
- Age Of Your Business: To be able to get a loan, you need to be in the business at least for a year. If you are just starting your business, you’ll need to consider alternative means of funding.
- Business Health: You will be asked about your business health. You will need to submit documents like your balance sheet, profit & loss account statement, cash flow statement, and such other information that could reveal how healthy your business is.You may also be asked other questions, about your revenue, turnover, how often you need to order fresh stock, and how you managed the initial investment for your business.
- Security/Collateral: If you approach a bank for a small business loan, you will most likely be asked to provide some kind of security or collateral. However, you could also opt for unsecured loans from NBFCs or similar institutions.
- How You Intend To Use The Funds: You could be taking a small business loan to buy new machinery/equipment, pay off your employees, invest in a new growth scheme, to meet your working capital requirements, take care of faltering cash flow, or simply to get through the ‘slow phase’ in your business.You will need to tell your exact needs to the lender.
- Other Documents: You will be needed to provide a year’s bank statements, PAN Card, Aadhaar Card, income tax returns for the past 2 years, the relevant licenses, GST registration receipts and challans. The documents needed would also vary from lender to lender.
For quick, unsecured business loans, get in touch with Gromor Finance today!