A familiar challenge for every small business owner is the availability of funds. So, in order to overcome this money challenge, business owners tend to source for loans which are granted at a specific interest rate. Axis Bank Business Loanis just one of the many amazing loan opportunities provided by banks for your small business. If a borrower cannot process what it takes to get the bank’s approval, the loan is not granted. Hence, to increase your Business Loan eligibility rate, there are expert tips to follow. These tips are sure to earn you that loan needed to boost your business.

  1. Strategize your borrowing: As a business owner, you should decide to apply for a loan without proper planning. Decide whether it is actually the right season to get a loan for your business.
  2. Have a specific loan amount and precisely plan how to use the loan: For your loan application to be considered, you need clarity of purpose and a clearly defined plan on how you intend to utilize the money. It shows that you are actually serious minded with your business.
  3. Target the suitable lender: There are numerous lenders out to grant loans to business owners. However, it is important to compare these lenders and choose one with a suitable and cheap interest rate, within your capacity. For example, Axis Bank Business Loan is granted at an interest rate ranging from 15.50%-24.00%. Banks lower their interest rates in order to win the patronage of a borrower.
  4. Equip Yourself with the 5 Cs to Prove Your Eligibility: To increase your Business Loan eligibility. It is important that you have the knowledge of the 5 Cs that most banks desire. These 5 Cs are the present Condition of your business, your Capacity of loan repayment, the rate of the additional Capital you need, your Collateral and your Character as a business owner.
  5. Maintain a Sufficient Personal and Business Credit Score: Though some banks have specified personal credit score, it is advisable to have at least 700. The percentage of interest attached to Axis Bank Business Loan is determined to judge from the borrower’s financial history, business turnover, and profit.
  6. Have a Great Cash Flow and Liquidity: Another step to take to ensure your Business Loan Eligibility is to ensure that you have sufficient cash at hand to suffice for a down payment required by lenders. This down payment usually ranges from 20%-25%. This regular cash flow also determines your monthly payment.
  7. Invest in a CPA: If you really want to speed up your loan approval, then you need to invest in the employment of the services of a Certified Public Accountant (CPA). With this, your business has an already reviewed financial statement on an annual basis. It shows that you will properly manage the fund and keep a clear financial record. The bank can, thus, trust you with the fund.
  8. You can also Invest in an Accounting Software: If hiring a CPA is not affordable, accounting software can also serve the same purpose.
  9. Prove Your Ability to Repay: Do your research on the requirements of each bank and make sure you are adequately prepared. Make sure you have all the necessary documents all to prove that you are eligible and traceable if need be.
  10. Initiate a Personal Relationship with Loan Officers: Your relationship with these officers is important as it determines your character with people and customers alike. Endeavor not to take any officer for granted.
  11. Shown an Understanding of the Risk of Your Business: Respect the bank for its risk-taking and demonstrate that you understand the risk involved in your business
  12. Supply Truthful Information about Your Business: Integrity is important in not only information about your business but also in all the documents required for the loan application. Do not to forge any document.
  13. Discuss Current Business Projects: Discuss feasible projects that you intend to explore once the loan is approved. You might not need to bore them with long-term goals and aspirations.
  14. Have a Satisfactory Debt Service Coverage Ratio (DSCR): A stable cash flow proves that you can pay your debts and unexpected expenses.
  15. Settle Other Debts: before you apply for a Business Loan, settle every other debt. Axis Bank Business Loan, for instance, is not granted to a borrower who is indebted.
  16. Invest in Assets: When applying for a bigger loan amount, you would need security. This is why it is important to invest in assets so as to have sufficient collaterals to aid loan approval.
  17. Prepare an Impressive Business Plan: Be detailed with your business plan. It should include your business description, concept, strategy, executive summary, market analysis, financial projections, financing requests, and an appendix.
  18. Be Diverse Loan Consideration: If a loan application is not forthcoming, consider other options that might satisfy your needs at that particular period.
  19. Effective Online Presence and Posts: This can also boost your eligibility, as it is proof of the existence of your business. Lenders usually carry out research on your business and once it can be confirmed online, you have an edge.
  20. Correct Errors on Your Business Credit Report before applying for a loan
  21. Have More Than One Payment Plan and a Backup Plan: Preparation for unforeseen situations gives the assurance of repayment to lenders.
  22. Have a Complete Understanding of the Processes and Requirements of the Small Business Loan for which you are applying.
  23. Apply for the Right Loan: There are some banks that have loan restrictions such as lending to hotels. Watch out for those restrictions and visit a bank offers your type of Business Loan.
  24. You Need to be Prepared for Your Loan Presentation: Be bold enough to present your business plans and answer questions.
  25. Project an Impressive Moral and Ethical Character. Your personality determines whether the officials want to work with you or not which affects your loan application.

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