Financial Flow is the life blood of any successful organization. Most businesses will need a large amount of working capital to start up a new business or enable the rapid growth of an existing business. Scaling up always requires an influx of finances.
Which is why, we go to all lengths to ensure that we can disburse a loan that can help you take your business to the next level. Business loans are very special to Andromeda and we have been helping our customers scale to new heights of success by helping them finance their dreams for their enterprises.
While a personal loan is given on a personal capacity and income, a business loan is given based on company's income and capacity and is given in the company's name.
Business loans are categorized broadly into following 2 segments.
Business Loan Eligibility Criteria :
Business loan eligibility depends upon various factors which differ from bank to bank. The main factor of course, is your ability to repay the loan. Banks that offer business loans will run extensive checks on your business, profits, financial statements and scope of success. For example banks will assess your repayment capacity with the kind of organization you have built.
For your benefit, we have put down some of the main things to take care of to ensure you are eligible for a business loan. Keep the following points in mind to ensure your application goes through.
Age plays a role in the eligibility and repayment capacity of the individual. Banks generally give out business loans to self employed individuals/business owners that are typically between the ages of 24 to 65 years.
Stable and Sustainable Business :
A stable business record goes a long way in improving your eligibility for a business loan. Individuals applying for the loan should have been running their business (the one for which you need a loan) for a minimum of 3 years. Apart from this, you should have been involved in managing stable businesses for a minimum of 5 years to increase your chances of securing a loan.
Financial Statements :
Current and previous financial statements of your company are used by the bank to evaluate your repayment capacity. These are very crucial. Any kind of financial instability due to mismanagement is frowned upon and can reduce your chances of being eligible for a business loan. Clean and well maintained balance sheets that show financial stability and sensible transactions helps in improving your eligibility for a business loan.
Outstanding EMIs :
Any pending EMIs at the time of applying for a business loan are likely to reduce your eligibility in terms of maximum amount or even loan disbursal. Since the amount is calculated on basis the EMI, you can possibly repay the contributions towards other outstanding loans to reduce the total business loan amount drastically.
Track record of Home Loan :
Some Bank will give unsecured loan on track record of Home Loan if person who require Business loan ITR doesn't support then on track record of Home Loan bank will sanction loan.
Some Bank will give unsecured loan on day to day Banking if person who require Business loan ITR doesn't support then on day to day Banking bank will sanction loan.