Not all businesses are inbred with a silver spoon! Not even Facebook, which was started in a dorm room at Harvard University in 2003 by a Harvard sophomore – Mark Zuckerberg – to connect with Harvard students. Finances in a business have always played a major role. Especially now when economic distress has moved many into massive financial despair, the requirement for online business loans has become even more pronounced.
An online business loan is one of the most efficient and quickest ways for a business to stay afloat and grow. From new product launches to investment in infrastructure and management of cash flow, a business loan can help scale your finances.
How can you place the application for a business loan?
There are 2 major routes through which you can place the application for a business loan – either by visiting the nearest lender’s branch office or through an online procedure. However, before placing the business loan application, use the online business loan EMI calculator to be aware of the maximum loan proceed as per your eligibility and suitable repayment tenure as per your cash inflow. Also, it is recommended to check the business loan eligibility parameters set by the lenders and the documents required before hitting on the business loan apply online button to lower your rejection chances.
Step-wise approach when applying for an online business loan –
Decide on the business loan type –
Many often associate business loans with stringent eligibility parameters, accompanied by long-term waiting periods. A business loan is relatively simple to avail of today. With a wide variety of credit options to select from, you can avail of a suitable business loan based on your business requirement, which may range anywhere from equipment finance to business expansion. Standard business loans involve working capital loans, SME and MSME loans, or machinery loans.
Once you have decided on the business loan type, you can apply with the selected lender through the online platform.
Keep necessary documents handy
Do you know why at times business credit sanctioning may witness delays? Mostly, it is owing to the lack of proper preparation. Thus, before you place the application for a business loan, ensure to prepare yourself with crucial loan documents. Doing so will speed up the loan procedure naturally. The important documents that you must keep handy while placing the loan application online are –
· Correctly filled up the loan application form
· Detailed business plan
· KYC documents of business
· KYC documents of business owner
· Past 6 months business bank statements
· Audited balance sheet for past 2 years
· Income tax returns for the past 2 years
After filling up the business loan form and document submission, your business loan application will undergo different verification stages. Once the verification is done, your loan application will be approved, and the lender will let you know about its terms and conditions and loan rate. Post signing the loan amount disbursement paperwork, funds are disbursed into your account.
Note that while you sign the final business loan documents, carefully read all the lender’s terms and conditions involving the repayment tenure, processing fees, foreclosure fees, and other fees and charges to eliminate any chances of future discrepancies.