Every business venture, no matter big or small, new or old, faces a paucity of funds at some time or the other during its normal course of business. This shortage could be faced due to various factors, internal and external both. Most of the times, these factors are out of your control but can have a serious impact on the growth prospects of your business nonetheless. Some of the most common reasons behind your business facing a shortage of funds are:

• Delay in the realisation of payments from buyers.
• A high proportion of credit sales.
• Extended credit period offered to customers.
• Higher running expenses.
• Underutilisation of resources.
• Lack of suitable personnel.
• Bad Debts.

Whatever be the reason behind your business facing a cash crunch, the fact of the matter is that there is no point cribbing about these things. Take control of your finances, keep a close tab on them, and try to minimize the wastage of resources internally. This methodology would serve good to stem out the internal impediments but what about the factors which are beyond your control. The only solution that you can apply in your situation is to avail instant unsecured business loans from small business loan providers in Delhi, Mumbai, Pune, Gurgaon, and other cities in India, who offer you high value business loans based on their MSME loan eligibility criterion.

Why you Need to Avail a Small Business Loan?

A small business could be any venture, it could be a trading business, service providing business, manufacturing business, or restaurant business. What unites these different types of business ventures is their constant requirement of funds. Due to severe competition and the quest to offer excellent customer experience, all such businesses resort to availing small business loans at one point of time or another. The requirement could be for purchasing new equipment, repairing the existing ones, stocking up before the festive season, or upgrading the infrastructure.

The usual option in such a scenario is using up your personal or business funds but what if you do not have much money with you. Even if you have that much money, it does not make sense to take out such a huge chunk of cash from your savings/reserves at once because it will leave you exposed to future uncertainties.

The best option you should choose is to avail a small business loan from any of the various financial institutions operating in India. The most convenient and quickest business loans are provided by the next-gen online small business loan providers in Delhi and other cities. These lenders follow a paperless approval process and complete the entire business loan procedure online. You can avail instant unsecured loans of up to Rs. 5 Lakhs with a repayment tenor of 24 months credited in your account within a few working days. All you need to do is to provide some basic KYC and financial documents to process your business loan application. The money thus borrowed can be used for any business-related requirement of yours.

Factors Deciding MSME Loan Eligibility

When you apply for a small business loan, the respective financial institution assesses your profile against a number of factors to determine your business loan eligibility criterion. The most important factors that decide your MSME loan eligibility are:

• Credit Score: Your CIBIL score will significantly impact your business loan eligibility. Most lenders require you to have a CIBIL score of over 700 to process your application but there are certain online business loan providers who have their own rating criterion which they prefer over CIBIL.
• Gross Turnover: Every financial institution has a minimum turnover requirement threshold to approve your business loan application. If your turnover is below this level, your application might be rejected. There are online loan providers who offer you collateral-free loans of up to Rs. 5 Lakhs if your annual turnover is more than Rs. 10 lakhs.
• Income Tax Returns: Your income tax returns must be timely filed, and your financials must accompany the income tax statements. Your income over the last 3 years should show an upward trend to convince the lenders regarding the sustainability of your venture.
• Bank Statements: Your bank statements for the last one year must have adequate balance and there should be no cheque bounces. A high number of transactions through banks assure the lenders regarding your sales and turnover figures.
• Other Documents: In addition to the usual financial documents, you must also provide necessary documents as and when required by the lenders. When you provide all the documents in a timely manner, it helps in the quicker processing of your business loan application.

So, you need to keep these factors in mind while you are preparing your application for a business loan. This would help you in getting your application approved in time and without any hassles.

biswal93

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