Business Finance is an act of bringing money into organisation. It includes procurement of funds so that business organisation is able to carry out its operations effectively and efficiently. Every organisation big or small, manufacturing or trading needs business finance. Business finance includes all types of funds but the amount differs from one business to another depending on the nature and size of the business.
With growing competition various institutions or banks are providing Business finance based on consumer needs. Eventually, it has become easier to apply for a loan online or offline and get it sanctioned, provided you meet all the eligibility criteria and your credit score is good. Following are the easy steps to apply for a Business Finance offline:
Step 1: Compare all the available resources and choose the one that is best suitable for your organisation.
Step 2: Get in touch with business relationship manager via phone or via scheduling a meeting in the institution chosen. The business relationship manager will suggest you the kind of loan you can apply for and rate of interest, processing fees, Penal Interest charge or any other charges that are included.
Step 3: Submit required documents once verified your loan will be sanctioned without delay.
In order to know how to apply for Business Finance online read the following steps:
Step 1: Fill out the online application form with your personal, business and financial details
Step 2: A representative will contact you soon. Generally, they contact you within 24-48 hours of your application to take an appointment to meet you and collect the required documents.
Step 3: Submit your documents with the Business Relationship Manager. Once your documents get verified, your loan will be disbursed to your bank account.
Also read: Significant Role Of Finances In Business
Eligibility criteria for getting your Business Financed:
To get the business loan approved one has to meet the eligibility criteria set by the institution or bank. The criteria may differ from institution to institution depending on the nature of the business. These are few general criteria that one has to meet:
Credit Score: As a business owner you might have to submit credit report of your company. Bankers typically examine credit report when you apply for a loan.
Age of the Business: Again this factor varies from business to business.
Annual Revenue: A business requires to bringing in certain amount of annual revenue.
Personal Income: You need to show proof of your personal income so that you can meet the repayment requirement.
How you intend to use to your funds: You may have to explain how you plan to use the money.
It is difficult to say which criteria are most important so it’s best to do a good research about the institution or bank or lender you are interested in and then apply wisely.