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Why pass up a great opportunity to finance your business growth when Hero FinCorp makes it simple to obtain funds with its straightforward business loan eligibility criteria?
Starting a business is simple but maintaining and expanding it requires a consistent infusion of funds. If you try to use the profit for all your business needs, you will not be able to go very far due to a lack of liquidity. This is where Hero FinCorp can assist by providing easy access to business loans.
In order to assist you in meeting your growing funding needs, we have simplified our small business loan eligibility criteria. Here is a table that summarises the checklist for obtaining business financing from us:
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| Occupation |
Self-employed Professionals:
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Self-employed Non-Professionals:
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Entities:
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| Work Experience |
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| Maximum Loan Tenure |
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When using a business loan eligibility calculator to determine your approval chances, it is critical to first understand the following factors that influence small business loan eligibility
Your business' credit score reflects its credibility and repayment ability. If you are good at managing your existing debt and have never had a debt default on your company's name, you may be able to get a business loan approval quickly.
The industry in which you work is also vital in determining whether you are eligible for business financing. If you run a business that only flourishes during a particular season or engages in activities that the Indian government considers illegal, you will be denied funding.
Your company's sales figures inform lenders about how you are performing in the market and whether there is a demand for your product. A higher turnover equates to a higher profit from your business. On the other hand, if you are having trouble selling your goods or services due to a lack of demand, you may be unable to obtain a business loan.
The eligibility for a business loan also relies on your company's debt-to-revenue ratio. If a sizeable chunk of your monthly profit goes toward debt repayment, leaving you with only bare minimum funds to cover operational expenses, your business loan application will be denied.
Improving your eligibility for a small business loan is simple if you follow the tips outlined here.
When applying for this loan, create a proper business plan that details things like areas where you intend to use funds, future projects, sales forecast, anticipated profit, and so on. In addition, emphasise your management team's experience and a brief overview of your company. A well-researched plan informs your lender about the viability of your business and increases your loan’s approval chances.
Cash flow highlights your company's liquidity position and informs lenders if you have enough cash on hand to cover EMIs. You can cut unnecessary expenses, avoid stockpiling, sell obsolete assets, and negotiate better repayment terms with your raw material suppliers to improve your business’ cash flow.
There are many ways to boost your business credit score. You should automate the payment of your existing debts to avoid EMI skips, limit the business credit card usage to below 30% of the available limit, and clear its previous defaults (if any).
In order to get an instant business loan approval, you must have all the business loan eligibility documents in hand. The key documents that determine your business loan eligibility are proof of existence, balance sheet, cash flow statement, income tax return certificate, KYC proof, and a few others.
Our business loan provides you with sufficient funding and places no restrictions on how you can use the funds. We also give you the option of deciding on the repayment term with our pocket friendly EMIs. Our simple business loan eligibility criteria ensures that you have easy access to funds to make the most of any business opportunities that come your way.
In this case, the only way to obtain a business loan is to persuade your lender that your profile carries a low credit risk. You have the option of using your business assets as collateral or adding your business partner as a joint loan applicant. However, this co-applicant must have a good profile and no default records associated with his name. Even if you provide collateral or add a co-applicant, it is entirely up to your lender's discretion whether you are approved for a loan.
Every niche has some level of risk. For example, if you are in the clothing business and only manufacture woollen clothes with a reach limited to India, you may struggle to sell your products during the off-season, which is during summer and monsoon seasons. The type of business informs lenders about your income stability. Furthermore, if you do business with an enemy country, there is a high credit risk associated with your profile.
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