123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

How To Secure A Business Loan?

Profile Picture
By Author: Neha Sharma
Total Articles: 170
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

When you are starting a business you will need a capital to begin the initial process for a startup. The only way one can get a capital is through the process of business loan. You can always approach a bank or a financial institute for a business loan, but there are certain things to be kept in mind before you start the application process.

Business loan process:

Enabled with IT, there are some banks that can revert back with your business loan eligibility very quickly. It will allow you take a decision about the benefit of the business loan verses the alternative loans available in the loan market today. However, you will need to keep it in mind that as the unsecured loans for business, you may skip the part of the process where you need a guarantor, collateral or security, but you will have to take a higher rate of interest into account.

Here is a brief insight into the steps of the business loan.

• Estimate the principal amount.
• Apply for the business loan with right documentation, which will vary from bank to bank. Each financial organization has different emphasis on documentation. ...
...
• If you receive an offer letter from the bank, then you will need to ensure that the business loan is customised to meet your needs as well as EMI are fine-tuned too as you should have a business strategy in place to repay the loan EMI consistently.
• If the discussions with your bank officer fall in the place, you should check out the terms and conditions of the business loan and then sign out the agreement.
• However, if the details of the business loan are not agreeable with your business, you will have to decline and take a reality check.

The ground reality check:

In spite of the big boost budget 2014 offered to the entrepreneurs, the systems at the ground level are still the same. The vision of our new government is yet to percolate down to the level of banks and financial institutions who offer funds to businesses. Since, it may take a while to have more receptive market;consider some of the other alternatives to business loans.

Overdraft – the most common alternative to business loan
This is a secured loan against the assets. Though, most common people do not want to take a loan against the gold, stock options, land, real estate property or any other asset available, most successful businessmen have. As history bears witness to the grand success of corporate giants, most of them started by taking the loan against the assets. These overdraft facilities will offer you an opportunity to use these assets and the funds too. The loan to value ratio of the most overdraft loans is 80 to85% of the market value of the asset.

Author Bio :- Neha Sharma is a finance student who loves to write about business loans. She is delighted to share information about the facets of business loans and offer value to entrepreneurs as they use these banking products to take their businesses to higher level of success.

Total Views: 295Word Count: 521See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: