Small Business Loans
What small business lack is the internal resources to raise finances. Commonly the businessman himself has to prepare all documentation inorder to avail finance from the banks. Alternatively, professional help can be availed for a cost. Incase you plan to do it all yourself, here are some suggestions:
1. Specify Your Needs in Detail- You should provide specific details to your bank as to where the money that they will be giving you is going to end up.
2. Provide Sufficient Guarantees- Provide sufficient collateral or arrange for a guarantor for your loan. In India, the government has put together a fund for guaranteeing the loans that are provided to SME sector. Here you do not require any collateral, but the amount is restricted to Rs 2.5 Mn (may be increased to Rs 5 Mn). Ask your banker about it or visit their website http://www.cgtsi.org.in.
3. Maintain a Good Banking Record.
4. Mention Your Credit Rating- You can ask CIBIL (Credit Information Bureau India Ltd) for your credit rating details. Visit their website http://www.cibil.com
5. Mention Your Past to Solidify Your Future- You should mention all your significant business achievements in your application.
By being honest and specific in your application and by maintaining a healthy financial past, you can look forward to a wealthy future.
on July 23rd, 2008 at 4:03 am
Most entrepreneurs need to borrow money at some point. When you’re in the market for small business financing, determining what kind of loan you can qualify for is the first step. Thanks for the info!