Maintaining a healthy balance sheet is crucial to running your business smoothly. Be it business expansion, extending your product line, purchasing new equipment, technology, or machinery, or daily cash flow needs, businesses need funds at different stages of their growth and maturity. This is where a small business loan can act as a suitable option. When required, you can take advantage of a small business loan offered by a reliable lender. Let’s explore what these loans are.
Reasons to Take a Small Business Loan
You can apply for a small business loan for several reasons. They may include anything from building credit and increasing your working capital to expanding your business size or opening a new branch. A business loan can also provide you finance to purchase new equipment or machinery, build and implement a marketing campaign, purchase inventory, or hire skilled workers
Features of a Small Business Loan
NBFCs have made it extremely easy and fast to apply and avail a business loan. Some of their best features are fast and hassle-free loan application process, high value loan, no security requirement, and flexible repayment tenure. Simple eligibility criteria and minimal documentation requirements are the primary feature that attract many lenders seeking business loans.
Benefits of Taking a Small Business Loan
These are the benefits you get by taking a small business loan:
Quick & Easy Online Process
You may conveniently avail a small business loan through a 100% online, quick, and hassle-free process. Since these are collateral-free loans, there is no need for any security, and your business loan application will be approved within minutes. Once approved, the loan will be disbursed within 15 minutes*.
Flexible Loan Tenure
It is important to plan your business’s success and at the same time stay prepared for the upcoming variables. With lenders like Clix Capital, you have the freedom to choose your loan tenure as per your repayment capacity and estimated budget. You must use a business loan EMI calculator to get an idea of your monthly outflow and decide accordingly.
Competitive Interest Rate
While applying for a business loan, you must give attention to the interest rate being charged by the lender. It may depend on some factors, including your credit score, business experience, business revenue, loan amount, business vintage, etc.
How do I Qualify for a Business Loan?
You need to meet the lender’s eligibility criteria to qualify for their business loan. For Clix Capital, you need to meet the following conditions:
- You must be 21 to 65 years of age
- Your business must be a proprietorship, private limited company, closely held non-listed company, or a partnership firm involved in services, trading, or manufacturing
- Your business must have a minimum turnover of ₹ 1 crore
- You must have a business vintage of at least 3 years in the current field
- You must be reporting audited financial statements for the last 2 years, and the majority of your business should have been routed through a bank, or you must have captured turnover over the last year through GST returns
Documents Required to Avail a Business Loan
Documents required to avail a business loan from Clix Capital have been mentioned below:
- Completed loan application form
- Passport size photograph
- Identity Proof, which may be your Aadhaar Card, PAN card, or government ID if you are a government employee
- Address Proof, which can be your Aadhaar Card, passport, driving license, voter ID card, or utility bills for the last 2 months
- Proof of Ownership
- Financial Documents, which include the following:
- PAN Card for a firm, company, or individual
- 6-months bank statement
- Copy of the most recent Income Tax Return form
- Computation of income, audited balance sheet, and profit & loss account for the last 2 years
- Proof of continuity of the business of 3 years, which can be your sales tax certificate, establishment, ITR, or trade license
Tips to Improve Your Chances of Getting a Business Loan Approval
A small business loan can help in arranging funds required for your business expansion and growth. So, before you apply for a business loan, take sufficient measures to maximize your chances of getting approval. Follow these tips to improve your odds:
- Have a well-planned strategy to use your business loan. If you are clear with your purpose of taking the loan, the lender would consider you as a low-risk borrower and give you loan approval without any hassle.
- Have a high credit score of over 725, as it increases your eligibility to avail a business loan at a lower interest rate.
- Compare loan offers from different lenders and apply for a loan that has easy eligibility conditions and documentation requirements that you can fulfil.
A business loan from Clix Capital is carefully designed to finance your business needs. We offer unsecured business loans of ₹ 5-50 lakhs with flexible repayment options. Apply for a business loan now and give a boost to your enterprise by sourcing the required money at the right time.
You can also reach out to us at email@example.com or call us at 1800 200 9898
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