Many aspects of business must be managed by a small business owner when running a business. As a small business owner, he has no resources to waste. But it needs the optimal performance of each resource/department, so that the cost of production is kept at a minimum level. And the profits are also improved. But when an individual is multi-tasking and handling various functions on their own, there are chances that certain aspects of the business will miss their attention.
One crucial aspect that is often overlooked is the state of finances. Sometimes it can be too late when the business owner realizes that something is wrong with their finances. And that he needs external financing to put the company back in order.
In such a case, the best option is to take advantage unsecured business loans from one of the many financial institutions that offer small business loans in Delhi-NCR and other parts of India. A small business owner can access external financing by applying for a business loan and providing all required documents.
Unsecured business loans
Unsecured business loans, also known as unsecured business loans, are a financial product that provides business owners with easy access to emergency funds, without mortgaging any security or collateral.
Thus, since there is no mortgage on the assets, the processing time for a business loan application is very short. Nevertheless, in most cases, the request is processed and disbursed within a few working days.
With an extended repayment period of up to 24 months, it is convenient for business owners to repay business loan amount through easy EMIs. The borrowed amount as the loan amount can be used for any business related requirement of the borrower. Such as paying taxes, bills, upgrading infrastructure/machinery, labor salaries, etc.
With the increasing integration of technology in the financial services industry, an entrepreneur can now easily apply for unsecured business loans through online financial markets in terms of business websites. When searching online, the applicant can get access to comprehensive information on various financial products. Thus, he can select the one that best suits his business. Also, when he applies for a business loan online, he enjoys the benefits of fast processing and disbursements.
Business loan application process
Most of the time, when a candidate applies for a Business loan, it is only interested in the end result of the process, i.e. the amount of the loan. But it is equally vital for him to understand the entire application process. This knowledge would be helpful as he would be able to address any shortcomings in advance so that there would be no issues when processing the business loan application.
Now let’s take a look at some of the steps in the process that most financial institutions follow to process a business loan application:
The business owner must first approach the financial institution of his choice through online or offline channels. In particular, he can choose the channel according to his convenience. When he applies, he must submit the copies of his KYC and financial documents.
The financial institution or online lender will first check the CIBIL score as well as the company’s CIBIL score. Ideally, the CIBIL score should be above 750 as it signifies financial discipline on the part of the applicant. But this does not mean that if the CIBIL is below 700, the business loan application will not be approved. Many lenders also consider other factors in addition to the CIBIL to determine the business loan eligibility.
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After taking care of the CIBIL, the online lender goes on to analyze the submitted financial statements. The representative would check tax returns, net worth statements, and bank statements to verify the financial strength of the business.
If other documents are required, they will be communicated to the applicant by e-mail or SMS.
Then, the financial institution would initiate the verification process. This involves a visit to the place of business as well as the residence. The applicant may also be asked to provide certain documents.
Next, the online lender would call the personal and professional references provided in the loan application to verify market reputation. It is therefore essential to provide the references of the person or persons who can provide the right information.
Finally, there will be a personal interview (DP) with the credit manager of the lending institution. The credit manager will ask any questions they may have.
If the application is approved, the financial institution representative will pick up the loan disbursement package signed by the applicant as well as post-dated canceled checks for an active and operational account.
After signing the kit, the business owner can expect the amount to be credited to their bank account within a few working days.
With the option of easy small business loans, it is now convenient for small business owners to take control of their finances and deal with their debts in a timely manner.