When applying for a quick business loan, you have to ensure that it gets approved by the first lender whom you approach. Rejection is not an option as it can lower your credit score. Furthermore, with one rejection, your chances of getting the loan approved from another financial institution will also reduce.
A financial institution can decline your application after evaluating your credit history. Multiple rejections will show-up in the credit report and eventually, your credit score will fall. Hence, you need to ensure that your business loan is complete and ready in every way possible.
Here are the top 6 things that you should include in your business loan application:
- Application overview
You must include a letter at the beginning of your application that provides an overview of the application. The letter must also include a reason stating why you are an ideal candidate for getting the loan.
- A business plan
You have to provide a business plan with your application. The plan should provide a thorough overview of your business and your future prospects. It should include all your company statements like profit and loss statement, balance sheet, cash flow statement, etc.
You must also include market study and the feasibility of your business in current and future market conditions. Lastly, you must provide the management and marketing strategies of your company.
Better the business pitch is, higher are the chances of loan approval.
- All the required documents
You have to provide all necessary documents for satisfying the business loan eligibility criterions. Financial institutions usually need you to submit the following:
- KYC documents
KYC documents are proofs of identity, certifying that you are between 25 & 55 years of age. You can provide your Aadhaar, Passport, Driving License, Voter ID, etc.
- Address proof
You have to furnish documents that verify the proof of your address. You can produce any KYC document that contains your permanent address, any latest utility bill (electricity, telephone, water, gas, etc.) or house rent agreement, etc.
- Proof of business
A lender requires documents that vouch for the existence of your business. These documents also guarantee that your company has a vintage of at least 3 years.
You can furnish any certificate or registration that verifies the above. Some of those documents include trade license, Registrar of Companies certificate, GST registration, partnership deed, Articles of Association, Memorandum of Association, SEBI registration, etc.
- Income tax reports
You have to file income tax for at least the previous year and provide the same in your quick business loan application.
- Business turnovers
Lenders need business owners to produce turnovers for at least the previous year audited by a Chartered Accountant.
- Bank account statement
Your loan application must include your bank account statement of the previous month.
- Your business and personal credit report
Although the lender will inquire about your credit report, providing the same beforehand will be more beneficial.
Make sure that both the reports don’t have any inaccuracies that may hamper your loan application. Maintaining a healthy credit score and credit report can also help you negotiate your business loan interest rate.
- The amount of loan you require
The loan amount is one of the obvious things that you have to include in your application.
Bajaj Finserv along with many such financial institutions provides business loans up to Rs. 30 Lakh. They also have pre-approved offers with such loans that lower the time taken for availing financing. These offers are also available with personal loans, home loans, and an array of other financial services as well as products. You as a borrower need to provide only a few necessary details to check the pre-approved offer available for you.
You can also mention where you want to invest the funds even though lenders don’t necessarily need the reason.
Make sure to include all these things mentioned above to get your business loan approved and have it within 24 hours.