The Impact of COVID-19 on Business Growth- How a Small Business Loan Can Help

Small-Business-Loans-in-a-Post-COVID-19-era

The Covid-19 pandemic and the subsequent lockdowns have put our busy lives to a halt. The strange virus posed unique challenges to businesses across the world. However, now that the economies are coming back to the track, companies find it challenging to handle their everyday operations after such a long gap.
Even if you can carry out your daily operations conveniently, you may apply for business loan to fund its growth and expansion. Here, we will look at the impact of Covid-19 on business growth and how a small business loan can help.

Impact of Covid-19 on Business Growth

  • Fall in Revenue

Business revenue tends to fall during times of crisis like Covid-19. It hurts businesses due to the declining market conditions. As a result, they witness decreased demand and increased costs. Owing to the reduced orders and demand, there is an ultimate fall in business revenue.

  • Short-Term Challenges

Due to the reduced demand, businesses face short-term challenges to carry out their daily operations and handle their everyday expenses. They are forced to cut salaries and let a few employees go, which leads to a reduced workforce and unsatisfied staff members.

  • Financial Constraints

With Covid-19 restrictions, many businesses sought external financing for survival. This is where unsecured business loans can help them a lot. Whether you want a business loan for survival or expansion, you can avail it as far as you have a credit score of 700 or above.

  • Market Rigidity

In the present scenario, when demand is less, the business conditions have become tricky where both the businesses and the consumers have to proceed carefully. While companies want to increase their rates to gain profit, consumers wish to get cheaper things due to salary cuts and other reasons.

How can a Small Business Loan Help?

Unsecured business loans may come to your rescue when you need money to grow your business or manage everyday operations. If you face any of the challenges mentioned above, you can handle it well with a business expansion loan of upto ₹ 50 lakhs from Clix Capital. You can use the approved loan amount for any business-related purpose you want, whether to buy inventory, upgrade equipment, build working capital, hire employees, invest in marketing, or expand the workplace.

Since these are collateral-free loans, you don’t need to provide any collateral, security, or guarantor to secure them. You can avail them based on your credit score and other eligibility conditions. The higher your credit score, the better your chances of getting instant loan approval at competitive interest rates. Most lenders offer flexible repayment terms, which means you can use a Business Loan EMI calculator to get an estimate of your EMIs and choose a loan term with EMIs you can easily afford within your monthly budget.

Who can Apply?

To avail a small business loan from Clix Capital, you need to fulfil the following eligibility conditions:

  • You must be minimum 21 years of age at the time of loan application
  • You should not be more than 65 years of age at the time of loan term end
  • Your business must have a minimum turnover of ₹ 1 Crore
  • Your business must have at least 3 years of vintage in the current work area
  • The majority of your business should be routed via the banking system, reporting audited financial statements for the last 2 years, or capturing turnover in the last year through GST returns
  • A CIBIL score of above 700 and CMR up to 6 with stable income flow.

 

Documentation Requirements

Although lenders have minimal documentation requirements to make business loans easily accessible to all, these are some documents you need to provide while applying for a business loan from Clix Capital:

  • 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
  • GSTIN
  • 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

How to Choose the Best Lender for Your Business Loan

Since unsecured business loans are powerful instruments that can affect your finances for several months or years, you need to choose the best lender with favourable terms and conditions. You will find hundreds of lenders offering small business loans in India. You can use the power of the internet to compare them from the comfort of your home and make the right decision regarding your business loan lender.

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

You have to compare the lenders based on multiple factors, including loan amount, repayment tenure, interest rate, eligibility conditions, documentation requirements, customer service, fees and charges, and others. Once you find the lender that best suits your needs, expectations, and budget, apply for a business loan and get approval within minutes.

Don’t forget to check the lender’s eligibility conditions and ensure that you fulfil them to boost your chances of getting fast loan approval. The Covid-19 pandemic took the world by surprise, leaving a drastic and lasting impact on businesses. While economies may take a long time to catch up, you may avail a business expansion loan of upto ₹ 50 lakhs from Clix Capital and undo the damage caused.

We offer unsecured business loans to small businesses at competitive interest rates with flexible repayment terms. You can choose a loan term from 12 to 36 months and repay your loan conveniently according to your repayment capacity.

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*.

January 11, 2023 Business Loan 59

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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.