Top 5 Reasons Lenders Might Reject Your Business Loan Application

Running a successful business calls for optimal cash availability and unsecured business loans can turn out to be a savior. If you are looking to avail a business loan in Ahmedabad and wondering whether or not your business loan application will be approved, this post is for you. In this post, we are going to shed light on the top 5 reasons lenders decline business loan applications.

1. Poor Credit History

Having a flawless credit history plays a crucial role here. The firm’s directors must have a positive credit history to increase their chances of getting the business loan approved.

Companies offering business loan say that poor credit history is one of the most common reasons behind business loan rejections. Besides, if you have a good credit history, you can have an unsecured business loan in Ahmedabad at lower interest rates.

2. Not Having a Solid Business Plan

Next up have a detailed and realistic business plan sketched out before you reach out to the lender for a business loan. Whether you are looking for a big or small business loan in Ahmedabad, the lender will evaluate your application thoroughly and that includes your business plan as well.

What information your business plan must include? Include all key details such as financial planning for the usage of loan cash, profit margins, and money recovery plans. If you fail to include all these pieces, the chances are that your loan application will get rejected.

3. Lack of Evidence of Strong Cash Flows

Having proper cash statements in place is a good indicator to lenders that their money will be in safe hands. Cash flow gaps and bad revenues are often a flag for lenders that force them to decline your loan application right away. That’s because poor cash flows tend to be one of the primary reasons why a majority of businesses fail in the first place. It is a good idea to use reliable accounting software to produce weekly cash flow predictions and reports. This will help you avail a business loan in Ahmedabad relatively easily.

4. An Unestablished Business Line of Credit

Your firm not being in the market space could be one of the reasons behind not having an established line of credit. Also, there are times when suppliers do not automatically disclose your payment history to credit bureaus, so it is of utmost importance to get your payments registered so that relevant information reaches credit bureaus.

5. Criminal Background of Business Owners

Lenders are sceptical about lending business loans to business owners with criminal records. There are times when lenders might consider reviewing your loan application if you disclose your background with genuine reasons; however, there are very scarce chances of your business loan getting approved otherwise.

Hope you found the post useful. For more information related to unsecured business loans, stay tuned to our posts. If you have any queries regarding the business loan in Vadodara, we will be happy to answer them.

6 Business Loan Benefits Explained

The majority of businesses start their journey with small steps and it becomes a difficult task to expand your business with your own funds. This is where business loans come into the picture. Whether you are into the restaurant or manufacturing business, you can expand your wings by making the most of easily available business loans. If you are wondering about the benefits of business loans, read on:

  • Available at affordable rates

Financial institutions offer business loans in Mumbai and other cities. These loans are offered at affordable rates as there are special schemes to encourage small business owners to expand their businesses with confidence. There is strong competition in the financial market and you can expect business loans at attractive interest rates. The interest rates vary between 15 to 25 percent subject to the financial institution’s policies and your needs.

  • Quick disbursal of funds

There are times when you need a business loan as soon as possible. With online processes and minimal documentation becoming commonplace, you can expect quick disbursal of funds nowadays. Loan disbursal can be as quick as just 2 days and for preferred customers, it can be instant as well. Quick disbursal of business loans makes sure that your business operations do not come to a halt due to the lack of funds.

  • Flexible tenures

Banks and finance companies offer flexible tenures and repayment options. Whether you are looking for a short-term or long-term business loan, lenders have you covered.

  • No need to share your profits

Lenders offering business loans in Mumbai say that getting funds from investors results in the division of profits. Getting a business loan from banks or financial institutions means your profits remain yours. You are liable to pay the principal amount and the interest according to the terms of your business loan. That’s it!

  • Tax benefits

The list of benefits doesn’t conclude with attractive interest rates and quick disbursal. In fact, it extends to numerous tax benefits you can avail of. The Income Tax Act, 1961 allows you to claim a deduction on the interest rate. This deduction applies to your gross income.

  • Improves your credit rating

Repayment of loan dues on time improves your credit rating by a significant margin. Your overall credit score is dependent on several factors and when you make your payments on time, it benefits your creditworthiness. This simply enhances your chances to avail of more loans in the future.

For more information related to business or mortgage loans in Mumbai, feel free to get in touch with us. Being one of the leading finance companies in the country, we will be more than happy to help you with your loan requirements.

Top 7 Benefits of Business Loan for the Business Growth

Know Why Business Loan is Beneficial for the Business Growth in Ahmedabad Gujarat?

Lets explore the add on the advantage of a business loan so that organization apply for business loan in Ahmedabad, Gujarat and consider it a faster and secured way to get or raise fund for business service and product as compared to other sources.

Improve Strategies

You can accomplish your business needs by frequently assessing and improving your strategies with the funds you get from business loan, which further help business in growing and achieving its goals. Small business can :

  • Purchase Inventory
  • Renovate office
  • Pay Bills
  • Hire More employees
  • Advance existing operations

Marketing efforts :

Your business product or service should constantly comes up with different marketing initiatives to continue attracting existing as well as new customers . So it is better to invest business loan fund in different marketing initiatives like :

  • Promotion
  • Advertising
  • Product packaging
  • Digital Marketing
  • Designing and many more

Thus , business loan in Ahmedabad , Surat Gujarat can open lots of opportunities for existing business as well as new business where organization can think beyond their limit without any set boundaries and take an initiative to raise the finances that will benefit their business to grow in future.

Additional Working Capital :

To run the business operation smoothly even when the sale declines , adequate cash flow is required. Business Loan amount can be fruitful in case of an unforeseen circumstances.

Upgrade Equipment:

It is essential to use modern equipment to avoid boredom. Using loan amount in timely innovating and upgrading equipments or tools to enhance the employee accuracy further help organization to work efficiently and maintaining good working environment.

New and Innovative Technology :

Business Loan amount can be used used by the organization in updating or purchasing new and innovative technology to improve the speed , productivity and efficiency of the employees and give them a better insight.

Business Expansion Plans :

Every organization work to achieve large, thus fund is required if you plan to expand your business.

Growing Existing Business:

Business loan can help businesses to grow better as this fund can be used in expanding their business in existing/new location (hub like Ahmedabad, Gujarat) or in purchasing new and updated technology.

Points to remember to make a smooth payment of a business loan:

  • Make a blueprint of your past and current debts to find out the maximum amount you can repay to your business loan.
  • You can search for the low interest rate loan if you cannot pay the EMI with high interest rate or does not require large amount of fund to be able to pay the amount smoothly and timely.
  • Save considerable amount of money by cutting down the extra expenses until you repay the complete debt amount.
  • If you have too many loans pay off the low interest rate loan first and complete the payment of all the outstanding balance.
  • Auto debit of loan amount help reduces the bounces and considered as the best monthly repayment option.

How to get the best mortgage loan deal?

If you want to buy flat in Mumbai? Getting a mortgage loan in Mumbai is beneficial due to the lower interest rates. Mumbai has space constraints and flats are expensive. Thus, it makes sense to go for the mortgage loan in Mumbai to have your own affordable flat.

How to pick the best personal loan?

A personal loan is used for various purposes-to purchase a new car, go on a holiday, a child’s education or to fund a personal & business project. Future capital provides personal loan in Ahmedabad which is an unsecured short-term loan which can be availed at any time to meet your current financial needs.

Get your Personal loan in Surat Today

Personal loans are generally required by individuals to meet with their own expenses. Give shape to your ideas and execution capabilities with the help of Personal loan in Surat. Future capital become a most trusted business advisor, with our best and reliable service. Contact us for more details.

Car loan in Ahmedabad | Easy and Instant Approval‎

Future capital designed personal loans to fulfill your instant cash availability which will help you to get your instant purchases. Get lowest Interest car loan in Ahmedabad with instant approval‎. Get Quick Loan Services. Low Interest Rate. Secure Process. Fast & Easy Loan. Flexible Repayment.

Acquiring Mortgage Loans In Mumbai

Future Finance is engaged in offering varied financial services that has a segment of loan against property or mortgage loans in Mumbai to its customers by taking the papers of their registered property as a security. We provide excellence backed services securely within time frame and with our best and reliable service we become most trusted business advisor. Get in touch with us for Mortgage Loans In Mumbai and done your dream project easily.

Compare and Apply Best Personal loan in Baroda

Personal loans are generally required by individuals to meet with their own expenses like wedding, vacation, education, home renovation, medical emergency expenses, debt consolidation etc. The advantage of getting a personal loan is the interest rates are quite less. If you are looking Personal loan in Baroda contact Future Finance the best industry to offer financial services in the market right now. Compare other and Apply online.

Know These Basic Finance Terms Before Applying For A Personal Loan

Basically, in personal loan, you can apply to any lending institution like a bank or a credit union. Before, you apply for a personal loan in Surat from any bank you should be well aware of the basic finance terms. There are some basic terms like Interest, Annual Percentage Rate, Installments etc. are important before applying for a personal loan.