How to Apply for Business Loans?

FlexiLoans Quick Business Loans are short-term business lines of credit with quick and easy lending terms. A mutually agreed equated monthly installment gets fixed between lender and borrower. You need to pay EMIs on the fixed date as per the agreed interest rate. They decide EMI based on the principal amount and effective interest rate. Visit their website to know more.

Features of Online Business Loans from FlexiLoans

Easy Application and Affordable Interest Rates

The application process is online. Borrowers need to register, , and start the application in quick & simple steps. You get a cheaper and fixed business loan interest rate. The longer the loan term, the cheaper will be the rate of interest will be with fluctuations according to market trends.

FlexiLoans provides the best interest rate for business loans in India with a transparent process of online business loans.

Open Communication

Borrowers can negotiate on every part of the loan process, including interest rate, EMIs, Tenure, etc. For the best deal, come with an excellent credit score. Credit score also decides your eligibility and loan approval chances.

Instant Loan Approval Online

FlexiLoans evaluates creditworthiness quicker and processes the business loan application faster. If all documents and requirements are met, quick business loans take one or two days maximum. The complete process is online and interactive.
Businesses can also apply for long-term business loans, which would not take much time for assessment and approval.

Instant Business Loans

The purpose of quick business loans is to fulfil immediate business requirements; that’s why the name. Businesses get disbursal of the amount as soon as all the conditions are fulfilled in due time. So, apply for a business loan and grow your ideas to their full potential without delays and unending verifications.

Eligibility and Conditions for Quick Business Loans

Businesses loan eligibility needs the following information. Their simple and effective method reduces the processing time and expedites the approval process.

• The concerned business requires to share the age of the entity from the registration date.
• Total sales figure month-wise and annual turnover data.
• The minimum age for the application is twenty-one, and the maximum is sixty-five.
• Quick business loans are available for sole proprietors, individual corporations, private organisations involved in the production, trading, and service industries.
• The applicant must have five years of overall working experience and three years in the current industry.
• You can apply for the loan if the business is in existence for three years and at least two lakhs of monthly sales.
• Legal and accounts should be in order. Any errors or illegal undervalue will cancel your application.

Required Documents to Avail Loan for Business Expansion

• PAN Card and Aadhar for personal KYC verification
• Rent Agreement, Driver License, Voter ID, Ration Card, etc., for address proof (anyone out of the options)
• Six months account summary or statement as income proof
• Business verification documents such as GST Registration certificate, Trade License, etc.,
• For business loans above twenty lakhs, you need to submit the previous two year’s ITR and audited financial records.

These are all documents required for a business loan application. Consult or visit the FlexiLoans to know all the updates.
We have discussed quick business loans and how you can avail them through the best lending platform in India FlexiLoans.
In our second part of the blog, we will explain ways to expand and the company’s major challenges.

How to Expand Business with FlexiLoans’s Quick Business Loans?

Fund on Time

For any business, time matters the most. You require financial support, approach a lender, and they take several days for processing and approval, which will destroy the purpose of applying for an online business loan.

Businesses need money for immediate requirements, and they need it faster. With funds on time, you can mobilize resources, expand the business as per your scheduled plan. In the case of angel investors or venture capitalists, generally, companies do not have control over fund procurement timing and take months before the amount gets credited.

So, always go for FlexiLoans Quick Business Loans for getting funds on time and moving ahead with business expansion as planned.

Expert Financial Advice

Businesses can avail the facility to consult expert financial professionals along with their business loan application. Whether it is a quick business loan or long-term business loan, these people are industry experienced and provide valuable input about the funds for business expansion.

They also help with areas of concern that you might overlook or underestimate. These financial experts will assess your business position, suggest improvements, and optimise the business process to grow your creditworthiness in the market.

So, it will be wiser to ask your lender if they provide consultancy also because planning is teamwork, not a solo endeavour.

Customise and Grow with Instant Business Loan in India

FlexiLoans provides an option to customise the business loan as per your requirement and stage of the business. A start-up, middle-aged organisation, or business rebranding themselves, etc., you can find business loans of all types on the platform.

Get a quick business loan to start your business, open new branches, extend the premises, re-brand, market the products and services, etc. Consult for hassle-free business loan experience.

Operational Expenses

Operational expenses include salary, equipment maintenance, logistics, courier, and other day-to-day expenditures. Most organisations apply for a quick business loan to support their daily operational fund outflow.

You can easily manage operational challenges with the fund at your disposal. Focus on an expansion plan without worrying about capital. You can also pay vendor payments, equipment maintenance, and new purchases on time.

These working capital loans bring operational efficiency to your organisation. Check your business loan eligibility through the business loan EMI calculator and apply for the loan today.

Technological Transformation

Technological transformation is the need of the hour. Companies globally are introducing the Internet of Things, AI & ML-enabled systems, etc., and replacing the traditional mechanism of manual work culture.

With a quick business loan, you can start with small changes towards automation. Technology brings efficiency and boosts productivity. Take fund support from FlexiLoans and initiate the technological transformation to your business.

Technology saves time and money. Use for business expansion and growth.

Research & Development

Research & development is a crucial element for business expansion. Small businesses can not afford R&D due to a lack of funds. Get a customised loan and give a booster to your business. So, apply for a business loan as soon as possible and invest in building your brand.

Challenges for Business Expansion

• Struggle to arrange a working capital loan for day-to-day expenses.
• Small business owners find it difficult to borrow loans due to a lack of collateral.
• Private money lenders charge very high-interest rates.
• Not enough funds for new technologies such as IoT based transformation, construction of new complexes, etc.
• Too much psychological pressure from private money lenders on payment delays and complex repayment terms.

Concluding Thoughts

Expansion of business requires capital infusion faster and hassle-free. Your ideas can not wait because the market does not wait. In this nail-biting competition of companies, regular cash flow gives the stamina to innovate and expand.

While searching for the lender, always compare, read terms & conditions, and take the right decision after complete satisfaction.

Apply for a line of credit loan through FlexiLoans and soar to new heights with financial backup and expert support.

Excerpt

Do you want an instant business loan for expansion? We are here to guide you through all the requirements to avail funds through the best lender in India, FlexiLoans.

The post Expand Businesses with FlexiLoans Quick Business Loans appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.

Getting a business loan in any location used to be difficult, and you felt like you were bouncing from one desk to the next. It usually involved preparing a massive number of documents. Even after providing the necessary documents, you had to wait several months to approve and disburse the loan. On the other hand, online business loans require minimal documentation and can be disbursed in as little as a week or two.

This blog is a detailed checklist of things that you require to apply for an unsecured business loan. Let’s get started.

Business Loan Application Form

A business loan is commonly used to fund, among other things, the expansion of a business, the acquisition of equipment and machinery, the purchase of inventory, or the increase of operating capital.

You can submit the loan request in a variety of ways. However, the information they request is the same. As a result, you must be prepared to respond to all inquiries. When it comes to filling out a loan application, preparation is everything. Questions like these are frequently posed:

• What is the purpose of your loan application?
• How are you going to pay off the loan?
• Do you currently owe any other loans?
• Personal background information

The banks will request personal details like your mailing address, tax identification number (PAN), and Aadhar card number.

Business Loan Documents Checklist: Requirements for a Business Loan

Your small business financing to-do list will include a lot of paperwork. Consider making a separate folder for your business loan application from the one containing your paperwork, and begin gathering the necessary forms and documents.

Here is a business loan documents checklist you must prepare:

Business loan: Borrower Information Form

As the name implies, Borrower information forms are used to create a profile of the individual applying for a term loan. It includes personal information such as your name, address, phone number, and email address, as well as information about your organisation such as its mission, goals, and values.

Background and Financial Information

You’re probably a partner, partial owner, guarantor, or officer of a small business. If this is the case, you must provide a personal history as well as a financial statement.

A lender will want to verify your credit score before providing you with funds to start or expand your business. The form requires personal identification information such as your phone number and address, as well as a declaration of your current financial assets. It requests information on your assets and liabilities so that the lender can assess your investment history and current net worth.

Loan History

Anyone giving money will most likely want to know about a person’s repayment history, or even how frequently they’ve applied for loans in the past. A small business loan application history can have an impact on your ability to secure a new loan.

Your loan application history statement, in any case, confirms any previous small business loan requests. It provides information such as whether you have been approved for previous loans. This information assists banks in determining whether you are a good candidate for a credit line.

Business Registration Proof

You must first obtain a license or certificate for your bank to accept your business as legitimate. When a company separates from the person who founded it, the legalities change. This will be determined by the nature of your business and the license or certificate required to operate legally in the state.

The first step in obtaining a small business loan is to register your company. Before applying for a business loan, make sure your company is registered.

Business Financials

A corporation’s financial accounts show how much money is coming in and going out and the overall strategy for managing that money. They can be a fantastic way to ensure that the revenue you hope to generate actually materialises.

If you already have a balance sheet, creating proper financial statements is simple. Your company’s financial statements will include assets and debts in the same way that personal bank statements do.

ITR Records

A business loan application will require your most recent tax returns, so have them ready when you apply. This step in the loan application process requires three years’ worth of personal tax returns for your small business. Ensure your tax returns are signed and contain all the required information before submitting them to your lender.

Partner Resumes

Each key member of your company must submit a personal resume. Unlike other resumes you may have seen, this one is tailored specifically for the loan application process.

Your professional history, credentials, and company goals can all be included in a resume that the lender can use to learn more about you in minutes. Your CV is an excellent place to highlight your business knowledge and ability to run a profitable business.

Business Overview

The business overview form outlines the overall vision and business objectives of the organisation in detail. When you submit your application, your bank will ask for information about your company’s history as well as a synopsis of your business plan. This is done for them to verify your credibility with them.

Lease Agreement if Any

If your company has a physical location, a copy of your lease is required. Your lender will review the lease’s terms and circumstances to ensure that your company has a fitting lease agreement. This section may or may not apply to you, depending on the type of business you run. It’s acceptable if you’re looking for a loan to start your entire online eCommerce business.

B2B: Accounts Receivable Aging and Accounts Payable Aging

The bank is especially interested in these two reports because they reveal how you utilise working capital. A business-to-business (B2B) enterprise is the only one that requires accounts receivable aging. Many B2B businesses offer their customers products or services on credit.

If your clients are slow to pay you, your accounts receivable aging report will show it. If your customers consistently fail to make payments, you risk having your debts grow. This will affect your profitability as well as your liquidity.

Bank Statement of Business

Your bank may request a year’s worth of bank statements as proof of your ability to repay. Before proceeding with a loan application, banks frequently require a year’s worth of personal and corporate bank statements. When used to verify the accuracy of financial information, bank statements can also provide the bank with information about your personal and organisational purchasing habits.

How to Choose the Right Business Loan Leander

After you’ve gathered all your paperwork, it’s time to apply for a business loan. To do this, you must select a loan provider that meets your specific demands and specifications. To find a business loan provider in your city, you’ll need to do some web research.

Select a few based on the paperwork needed, eligibility criteria of business loan, and any other relevant factors.

This will save you time because you won’t have to apply for a loan with numerous lenders before you find the ideal one. You may easily receive a business loan if you make sure you fulfill all the standards. Notably, internet loan providers feature a simple procedure that makes it easy to obtain a loan.

Things to Check Before you Apply for a Business Loan

Addressing these three areas before applying can help you get through the process more quickly:

Before you apply, examine your credit history, both personally and for your company. If you have a poor credit history due to late payments or bankruptcy, you will be required to explain in writing. Prepare to discuss the circumstances that led to your problems, as well as how you dealt with them. Include proof that you have paid your debts, such as a letter from your lenders.

Prepare to discuss your financial needs, including where you will get the money and how you will use it. Include this in your business strategy’s summary as well as its financials.

Wrapping Up

When you’re ready to submit your loan documentation to the bank, read and thoroughly analyse each one. As a result, you’ll be in a stronger position during the loan evaluation process. It will also ensure that you are not submitting the incorrect documents required for a business loan.

The post Checklist For a Business Loan Application appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.

Starting a new business demands a lot of planning. The first step is to identify the right business idea that will add value to the buyers. The second step includes planning for branding, marketing, hiring, and sales. And finally comes the product strategy and working capital needs.

Does it sound like a lot of chaos and high risk? This is where a franchise business comes into the picture. India remains one of the hottest destinations for a franchise business, with over 2 lakh active franchise outlets. So, let us talk about the franchise business model today. Keep reading as we outline every essential aspect of this business format for you.

What is Franchise Business?

A franchise is a type of business where the owner licenses its business rights and operations to the franchisee. The franchisee gets access to trademarks, processes, and the franchisor’s business knowledge.

Apart from this, they also get the right to sell products or services on behalf of the franchisor. Does the business owner get anything in return? Yes, they get annual licensing fees, royalty, and an initial start-up fee from the franchisee.

Please note that the current royalty rates lie between 4.6% and 12.50%. The relationship between a business owner and a franchisee is contractual. Pizza Hut, Dominos, Starbucks, Subway, and McDonald’s are a few examples of the franchise business.

Benefits of Undertaking a Franchise Business in India

Let us look at the range of benefits this business model offers to a franchisee.

• Low Risk – One of the factors that demotivate people from starting their business is the risk involved. Starting an independent business for the first time can invite a high risk for the owner. Moreover, there is no guarantee that it will work. On the other hand, a franchise business is a tried, tested, and proven business format. Also, this low investment franchise business in India comes with a ready-made customer base. Therefore, the overall risk is low as it comes with the name of a well-established brand.
• Training – When you step into a franchise business in India, you get an opportunity to understand the business world. That’s not all. You will also get to learn the latest technologies and business practices prevalent in this business format. Getting hands-on training on already tested business methodologies will prove beneficial to your business. You might not get this opportunity in a private business venture.
• Marketing Strategies – Effective marketing strategies play a vital role in boosting brand awareness, brand loyalty, and conversions. Once you step into a franchise business, you get direct access to the already established marketing strategies of the brand. It means you get ample time to concentrate on promoting your products and services on other platforms. All this will give an excellent podium and push to our business.
• Excellent Support – New business owners seek guidance and support when they enter the market. They need someone to help them understand the market dynamics and consumer behaviour. Getting a hold of all these concepts is a time-consuming activity. Unfortunately, it can cost dearly in the long run. Franchise business owners need not worry about these things. The franchisor is there to assist and guide them through the business setup process. They can also help you understand more about loans for new businesses.
• Better Networking – We know how crucial networking is for a business and its growth. A franchise business allows you to network with the right people at the right time. The franchisor will share a list of people who can help grow your brand loyalty and boost sales. What more can you ask for? On the contrary, private business owners need to start from zero when it comes to networking. Establishing the right networking might take several years here.

Steps to Start a Franchise Business in India

Are you planning to step into a low investment franchise business in India? Here is a step-by-step guide for you.

• Identify your Niche – First of all, identify the industry that interests you the most. It can be anything such as cosmetics, apparel, electronics, or automobiles. Make sure you study the market conditions and demand graphs before finalising your business niche.
• Find the Right Franchisor – Once you identify your niche, it is time to find the best franchise in India. Start the process by shortlisting the top franchisors who can cater to your business needs. Meet the franchisors to understand:
  • How does their business work?
  • What kind of challenges can you expect while running the business?
  • What are the available business loan online options?
• Complete the Formalities – It is crucial to register your business with the Ministry of Corporate Affairs once you enter into a contract with the franchisor. Franchisees located outside India need to connect with international brokers for the registration formalities.
• Ownership – It is time to take over the ownership of the business legally once the registration formalities are complete. Make sure you seek legal help during this process to avoid any confusion and inconveniences later. Also, don’t forget to read the terms and conditions of the franchise contract properly.
• Licensing – It is an essential step in setting up a franchise in India. The franchisee will need several relevant licenses to open a franchise outlet in the public domain. You can get in touch with a market expert to know more about this.
• Hiring Manpower – Manpower is crucial to run a franchise business. Thus, you need to identify how many employees you will need to manage different business operations. Make sure you decide the duties of your employees before you go ahead with the hiring.
• Understand Taxes – The taxation system for franchise businesses in India is different from other business formats. Make sure you take some time out to identify the different layers of taxes and prepare accordingly. Moreover, if you plan to apply for financial assistance, ensure to check the business loan eligibility criteria first. You can also check the monthly EMIs payable with the help of a business loan EMI calculator.
• Start Operations – Once you are done with all the formalities and legal procedures, you are good to kickstart your franchise business operations. Make sure your business goals are aligned with those of the franchisor. You will get all the necessary details about the business from the franchisor. All you need to do is refine the marketing strategies and aim to drive your business to the pinnacle of success.

5 Quick Tips to Run The Best Franchise Business in India

Here are some quick tips that can help you mark your presence as the top franchise in India.

1. Be Passionate – Passion is a strong emotion that can turn the tables at any time and get you to the top of the game. Therefore, the best way to lead the race is by staying passionate about your business, products, and service. This approach will prove invigorating, give your ideas a boost, and let you offer better products and services to your customers.
2. Make Sure Your City Needs this Franchise – Please understand that running a franchise in India is not a piece of cake. It is crucial to research diligently before stepping into it. So make sure you pick a niche that will add value to the lives of your customers. It is also crucial to get support from your target demographic.
3. Enough Capital – You see, you might need a good amount of funds in the initial six months of business. So make sure you have reliable sources to ensure a smooth capital flow into the business. Experts recommend consulting a market expert and nailing down a budget that will help you survive the next six to eight months. You can also go for a business loan for Franchise or mudra loan to meet your capital requirements.
4. Get the Best Employees on Board – Make sure you hire the best in the industry for your business. Trustworthy and experienced managers and sales professionals will help take your customer service a notch higher.
5. Focus on Customer Service – You cannot cut corners when it comes to a franchise business. Even the slightest things such as consumer reviews and testimonials can make or break your reputation in the market. So make sure you focus on keeping your consumers happy and become the best franchise business in India.

Takeaway

You would be surprised to know that the Indian franchise business industry is growing at a whopping rate of 30% to 35% per annum. This industry is also estimated to touch the USD 100 billion mark by 2024. And this has made India the second largest franchise market around the globe after the USA.

These stats prove that going for a franchise business can prove to be one of the wisest decisions of your life. So what are you waiting for? Start preparing the blueprint of your business plan, arrange for a working capital loan, and explore all the latest franchise opportunities in India.

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