Whether you are applying for an SBA loan or a traditional bank loan, there are certain factors that improve your ability to obtain financing. This guide is drafted to help you in understanding important issues that financers consider when making a decision on a small business loan in Bangalore.
Do you have enough money of your own to put into the business?
All business loans in Bangalore require the business owner to put a certain amount of their own money in business. This equity investment by owner strengthen the fact that the owner believes in the business enough to risk own money and reduces the amount of monthly debt payments that the business must make.
Have you filed your personal/business income and business taxes?
Both lenders and government loan agencies needs to make sure that the loan seeker has met the tax obligations in terms of filing and paying taxes. Many of the loan programs function in accordance with partnership from government bodies. These loan programs do not look favorably on individuals or businesses who have unpaid income or business taxes.
Have you justified your business capabilities to repay a loan?
If the business is profitable and comprise of a cash flow in positive manner, this helps to justify your repayment ability for the new debt. In case of Non-profitable business, it becomes quite necessary to demonstrate how it will be profitable in the near future so the loan can be repaid.
The Riddhi Siddhi Multi Services advisor can assist in locating industry research or information once the advising relationship has begun.
Do you have sufficient collateral to secure a business loan in Bangalore?
Personal assets and business entities can be taken into consideration for collateral, or an alternate to repay the loan if the business defaults on the loan. Owner’s personal homes and other assets can serve as atypical collateral for a Business Loan in Bangalore.
Does your business have a net worth in positive direction?
The net worth of the business needs to be positive. This would comprise of equity investment made in business by owners and the total profit earnings.
Are you willing to personally guarantee a business loan in Bangalore?
Many business owners are asked to provide their personal guarantee the loan to get a business loan in Bangalore regardless of business’s legal structure.
Do you have experience in running business?
For new business starters, it is important to demonstrate that they have experience in the industry. If you have never owned or operated a small business before it is critical that you develop a team and an advisor network that can demonstrate the ability of successfully manage the company.
Riddhi Siddhi Multi Services advisors can assist you in this process once you have complete a draft plan for them to review in preparation of your first advisor session.