You may have a foolproof business plan with the right people around you to pour in knowledge and mastery of entrepreneurship. However, it may not be of any use without a no-fail financial strategy. Business finance is of foremost concern in making your ideas come into reality.
Lenders in the financial market can help you source the right finances for meeting immediate and long-term needs. Bajaj Finserv, one of such lenders, brings you exciting features with its business loans. You can use the fund for meeting your needs like working capital finance, purchase and establishment of machinery, renovation of office, etc.
It also provides loans of up to Rs. 30 Lakh to small businesses with benefits like:
- No collateral required
- Flexi Loan Facility
- Online access of account
- Approval within 24 hours with minimal documentation
However, you need a clear strategy for sourcing the finance and availing the benefits these loans come with.
Here are 4 strategies that will help you secure working capital finance:
- Keep clear loan objective
Identify the objective for which you want the loan. You may need it for setting up infrastructure, expanding operations and inventories or even for working capital financing. You should also assess how much amount you need for investing in these activities.
A strategic assessment will bring to light how much business finance your company can afford. When the loan officer asks you about the purpose, you will have a clear picture in your mind and can make a right pitch for it. A combination of planned strategy, calculation of amount required and financial status of the company increase the chances of securing small business funds.
- Evaluate your business’s health
A healthy business to secure finance requires you to have a few parameters set!
- Good credit history with up to date loans and advances, if any.
- A strong business vintage of 3-5 years.
- Personal credibility
- Regular filing of Income Tax returns and paying taxes as and when due.
- A constructive relationship with creditors.
These factors can help you project a strong image while applying for working capital finance.
A business running for a few years with strong credibility among its stakeholders has a good chance of availing the necessary finances. So, if you maintain the above parameters, lenders will find you trustable and approve the required amount without delay.
- Organise the documents required
Lending institutions require you to furnish various documents while applying for a loan. On this basis, they assess your financial status and approve your business finance.
Some companies require you to submit only the following documents:
- KYC documents
- A certificate of business’s incorporation or partnership agreement which should reflect a business vintage of minimum 3 years
- Relevant financial documents
- Bank account statement of the previous month
- A passport size photograph
With these papers ready, you can easily approach them and get the pre-approved business loan for working capital financing or any other purpose.
- Look for different options of business finance
Many financial institutions in the market may be ready to provide you with a loan with attractive offers. However, jumping on to the first attractive offer can be a mistake as many of the proposals contain hidden costs.
Moreover, there is no doubt that some lenders offer better terms and features than others. For example, Bajaj Finserv comes with offers like Flexi Loan Facility on Business Loans that help you manage your finances better. Here, you need to pay only the interest as EMI. Also, the interest is charged only on the withdrawn amount. There are no hidden charges on loans taken as well.
You may also apply for specific loans like machinery loan and working capital loan. A working capital loan turns out to be useful in times of deficit as working capital can make or break small businesses. The working capital loan interest rate and processing fees are also reasonable and affordable at above 18% and 2% respectively.
So, you should research thoroughly before choosing the lender. Select the one coming with terms that are economically viable for your small business. Now, you can approach a lending institution for availing loan with these strategies for securing business finance.