Guide to Availing Business Loans and How to Use Them for Your Business Growth

Guide-to-Availing-Business-Loans-and-How-to-Use-Them-for-Your-Business-Growth

There are three pillars to a successful business – a dedicated owner, strong strategies, and financial stability for the business to expand and thrive. While you may be brimming with innovative ideas to give that business dream a shape, in reality, the lack of adequate funds to make that dream true is a challenging proposition to be in.

You may not have a huge capital to kick-start a business, instead, you might need to resort to a lender to finance your business loans. If you’ve decided to flame your passion for starting a business and determined the amount needed, all you need is a reliable lender and in-depth knowledge of the loan application process and eligibility criteria.

Having little knowledge and asking the wrong questions can jeopardize the entire plan or dream. Remember, you need money to purchase equipment or inventory, and take care of your household as well.

Apply for business loan from Clix Capital, the most preferred NBFCs in India offering diverse loan products at an affordable rate of interest followed by simple eligibility criteria and flexible repayment tenure.

Importance Of a Business Loan

Business loans have been a feasible way of maintaining adequate funds for your business needs at all times. Business owners use it as a short-term financial enhancement towards covering the expense of any equipment, to boost working capital, to pay staff salaries, and for business expansion. There is no end-use restriction on the business loan amount though.   Moreover, there are a huge number of benefits of taking the funding path, here are some of them:

Full Control of Business: A lender never tells you how and the ways to use your fund. But, if your investor provides the capital, they are sure to advise and interfere in how you should run the business. So, business loans are perfect to run your business the way you want without any restrictions or interference on the use of funds.

Quick Funding: Anticipating capital money can take as long as 1 year via investors or capitalists. On the other hand, borrowing money from any NBFC lender is much faster and your application gets approved in no time if your loan eligibility is met and your loan documents are in order. Wondering how to get a business loan? Apply one now at Clix Capital to fuel your entrepreneurship dreams.

Affordable Interest Rates: One major difference between credit cards and business loans is, business loan interest rates are much lower than credit cards but bear in mind that your credit score should please the lenders.

How to get a Business Loan?

We at Clix Capital understand that the procedure of how to get a business loan can be elaborate and daunting if you’re not aware of the process. Lenders consider multiple factors when you apply for one, and as you proceed, you do not see much transparency in their approvals. With a well-known NBFC such as Clix Capital, you can be at ease while you apply for a business loan and get approved instantly if your loan application matches the eligibility criteria.

 

To begin, you need to be clear about why you want a business loan and how you are planning to use it. A clear reason will help you to justify your financial needs to the lender and help you decide the amount of funds needed. In simple other words, lenders prefer lending to people who will use money wisely and repay the loan on time.

Also Read: A – Z of Business Loans for First-Time Loan Applicants

If you have got everything organized as to why you need a business loan, the next step is to prepare yourself to be evaluated by the lender.

Factors That Keep You From Getting Quick Business Loan Approval

  • Credit Score Lenders look at the applicant’s credit score, business documents, income statements, and more while evaluating a borrower. Make sure you check your credit score before starting the process of obtaining business loans.
  • Cash Flow The stronger the income and cash flow, you’re more likely to get an easy loan. Lenders need to assure your loan repayment capacity before sanctioning you a business loan.
  • Time in Business Lenders avoid startups. If a business has been thriving for more than two years, it is easy to get a business loan.
  • Previous DebtsToo many debts will decrease your loan chances. Make sure you clear your previous loan commitments before applying for a new one.

10 Ways to Use a Business Loan to Grow Your Business

If you are ready to obtain a business loan, you need to consider the best ways to use it for your business or company.

  • Buying a New Machinery
  • Marketing Campaign to Boost Sales
  • Hire more staff/workers
  • Expand beyond borders
  • Upgrade technology
  • Purchase inventory in bulk
  • Improve your website
  • Office transformation
  • Train your workers/employees
  • Improve your product or service

How Can I Be Eligible for a Business Loan?

  • You need to be at least 21 while applying for the loan and under 65 at the end of your tenure.
  • Your business should be a proprietorship/private limited company/closely held non-listed company/ partnership firm involved in the business of manufacturing, trading, or services.
  • Provide audited financial statements for the last 24 months, or show your turnover in the last 12 months through GST returns.
  • Proof of ongoing concern in the current area of work, with a minimum of 3 years of total business vintage.
  • A CIBIL score of above 700 and CMR up to 7 with stable income flow.

If all of the above tick for you, you are eligible!

 

At Clix Capital, we believe that whatever your need is, our unsecured business loan has got your back. We help you financially upto INR 50 lakhs to meet your business needs. No more painstaking procedures; now apply for a business loan by answering a few basic questions and filling up our application. We hope now you know how to get a business loan.

For any queries, find us on Facebook, Instagram, LinkedIn, Twitter, or WhatsApp.
You can also reach us at hello@clix.capital.com or call us at +91-120-6465400.T&C Apply*.

December 19, 2022 Business Loan 136

Share this on:

About Author

Ritesh

Ritesh Sharma hails from Delhi and has spent the last 9+ years helping brands achieve their business objectives through paid, earned and owned channels of Digital Marketing across industries including Mobile OEMs, Fintech companies, SaaS providers and F&B.