Small and medium-sized businesses often need external financing to expand their horizons. While they have many financing options, Business Loans at Hero FinCorp remain highly sought-after. They have served as the backbone for several enterprises, particularly for SMEs falling short of capital for their regular financial requirements – but how easy is it to get a Business Loan at Hero FinCorp? Well, the final answer depends on some factors.
In the following sections, you will understand how to get an easy Business Loan, factors affecting Business Loan eligibility, and tips to improve your approval chances.
Stepwise Procedure for Online Business Loan Application
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Want to know how to get Business Loan easily? Follow these steps to apply while avoiding problems:
- Create a Plan: Planning the loan application and repayment is essential before approaching Hero FinCorp for availing a Business Loan. Your company profile is vital, and an existing relationship with the NBFC will be beneficial. Check your credit score and update your financial records before submitting the application form. Having a solid action plan to use the loan amount appropriately is non-negotiable.
- Check the Company Credit Rating: Company credit rating is the critical factor that determines how easy to get a small Business Loan, since it reflects your company's dependability and repayment capacity. A strong credit history helps earn the lender's faith in terms of prompt loan repayment. The company's age is also essential. A company working in the industry for over five years has higher Business Loan eligibility than startups and entrants.
- Determine the Purpose of Borrowing: You may borrow a Business Loan for various purposes, including purchasing raw materials, restocking inventory, upgrading equipment, marketing, acquiring businesses, investing in real estate, realising expansion plans, etc. You can also borrow money to build working capital, manage expenses during the off-season, hire employees, etc. Before applying, identify the specific purpose of borrowing a Business Loan to steer on the right path.
- Decide Upon an Adequate Loan Amount: Before learning how to get easy Business Loan, you must decide how much you need to borrow. Evaluate the intended expenses and calculate the exact amount you need to borrow. Taking each detail of the plan into account will ensure that there is no shortage or surplus of funds later.
- Go Through the Eligibility Criteria: When applying for a Business Loan at Hero FinCorp, you must determine their Business Loan eligibility conditions to see how easy is it to get a startup Business Loan. Apart from being 21 to 65 years of age, you must be running the business for at least five years successfully. Ensure you can fulfil the criteria conveniently to proceed with the online Business Loan application.
- Plan the Application Thoroughly: You must complete an online application form to get the necessary funding. Enter accurate details when applying for a loan without any errors, discrepancies, or falsifications. Double-check each piece of information before submitting to assure approval without additional formalities and complications. Submit the necessary documents, including income proof, KYC documents, signature proof, business continuity proof, etc.
- Keep Patience: The lender needs some time to review and accept the loan application. Once they verify your details, you receive a loan offer that you must read carefully to understand each condition. Finally, accept the loan offer to get disbursal within a few hours.
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Factors Determining How Easily You’ll Get A Business Loan
How easy it is to get a small business loan or larger one will vary based on several factors, including the following:
Industry: For any lender, a company in a profitable and consistent industry is more appealing as a borrower than enterprises in riskier industries.
Revenue: Although Hero FinCorp does not have any minimum turnover requirement for Business Loan applications, they check your financial records to ensure a sufficient cash flow to repay the loan.
Business Age: Apart from falling between the lender's minimum and maximum age bracket, the age of your business also matters. The NBFC looks at your business history to predict your prospects in the future. The older your business, the better. An established enterprise always has a better ground than a startup. That is why Hero FinCorp requires an establishment to be operational in the industry for at least five years to qualify.
Business Loan eligibility condition that you should be operational in the industry for at least five years to qualify.
Loan Amount: The loan amount you may qualify for depends on your business revenue, cash flow, credit history, repayment capacity, financial obligations, etc. A high DTI ratio lowers your Business Loan eligibility. Applying for a loan amount higher than you can repay often results in rejection. Therefore, evaluate your expenses and decide upon a loan amount you can easily repay.
Credit History: Your credit history is an important parameter to affect your loan eligibility. When you apply for a Business Loan, the NBFC will check your credit history to determine your creditworthiness. A strong credit score with a solid credit history will largely affect how easy is it to get a Business Loan.
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Tips to Make Business Loans Easier to Obtain
Here are a few essential tips that make loan application a tad bit easier for you:
- Check the Business Loan eligibility requirements and ensure fulfilling them without hassle.
- Have a comprehensive business plan.
- Look at your company’s age and past performance.
- Keep your ITR and financial records ready for the last few years.
- Prepare a list of directors and shareholding patterns.
- Maintain a high credit rating.
Business loans are an effective funding option for business owners to generate money and scale up quickly. Your firm can benefit from the easy Business Loan eligibility criteria at Hero FinCorp, along with a slew of other advantages. However, keep the factors affecting your eligibility in mind and follow the above recommendations to obtain a Business Loan effectively.
