Grow Your Business with Quick Small Business Loans

Every business follows a different approach towards loans and institutional finance. As an independent business owner you may or may not have borrowed money in the past to achieve your business goals. If you have not taken a business loan in the past, it is but natural to be a little averse to taking up a liability, however, sometimes a loan is a risk worth taking.

By utilising the loan funds for the right reasons, at the right time, you can give your business a veritable boost. Here are a few reasons for taking a business loan that you should consider

Expanding your facility or getting a second site: If your business has been growing year on year, expansion is a logical step to consider. You can utilise business loan funds for restructuring and expanding the original site or expand your venture to a second or even third site.
Improving your credit ranking: Borrowing loans and timely repaying them opens the path for larger institutional finance in the future. As good repayment record will have a positive effect on your credit rating, establishing you as a bona fide borrower. This in-turn will allow larger borrowings two or three years down the line, when your business needs another round of funding.
Buying specialised tools and equipment: If you already have ample space at the existing site, then you can also consider using the funds from your business loan for purchasing new stock or equipment. Sometimes using latest technology for production and management of your business can result in huge cost savings.
Taking advantage of a golden opportunity: Well a good opportunity seldom knocks twice, so if an amazing idea or opportunity comes your way which requires fast funds, a business loan can help you capitalise on it.
Hiring and talent acquisition: Every successful business needs talented hands and business owners agree unanimously on the fact that their people are the greatest business assets for them. So, don’t lose your best employees for the want of funds. Business loans also allow you to hire new talent and expand your enterprise.
Loans for working capital management: A business can still sustain itself in face of a temporary lack of profits but lack of working capital may force you to pull down the shutters. Cover the shortfall in your working capital with an unsecured business loan to get out of temporary sticky situations.

Where can you apply for unsecured small business loans?

Small businesses often turn to banks for unsecured business loans. But banks have a slow and bureaucratic system for application, verification and approval of small business loans. It may take as many as 20 days for a bank to process and approve your business loan application.

An alternative is provided by new lending products like Lendingkart for business loans in India. A business loan application with Lendingkart can get approved within 24 hours if all your documents and financial details are in order, giving you immediate access to the funds you need.

Furthermore, the application process is completely online which Lendingkart is able to save money on manual labour and in turn transfers the benefits to customers in the form of low interest rate on small business loans. As a borrower, it is a win-win for you.

The best thing about getting a business loan from Lendingkart

Lendingkart offers unsecured business loans.

When you take a loan from a bank, it is a secured business loan, which means you have to give the bank an asset of equal or more value as a collateral. In case you are unable to repay the loan timely, the bank can take over the asset and recover its costs.

An unsecured business loan doesn’t require any collateral, which is what Lendingkart offers. Thus, your capital is not at risk when you take a business loan from Lendingkart.

You can now apply for a business loan from the Lendingkart smartphone app. To know more and apply for Lendingkart business loans, click here.

KYC Documents – What You Have and What is Needed

Getting a business loan in India requires a lot of meticulous planning on a small business owner’s part. One aspect of this planning is getting the KYC documents in order. Here we have compiled a list of documents that you generally need when applying for a business loan.

A Checklist of Documents Required to Apply for Business Loans

  • For Identity Proof: Driving License / PAN Card / Passport / Voters ID Card
  • For Address Proof: Utility Bills (telephone, electricity, broadband) / Passport / Trade License / Rental Agreement / GST Certificate
  • For Financial Checks:Business related bank statements(generally, of preceding 2 years)
  • For Tax Compliance: Latest ITR (you may also be asked for the computation of Balance Sheet, income & Profit & Loss account for the last 2 years)
  • A Proof of Continuation
  • Other mandatory documents include, Sole Proprietorship Declaration, Certified Copy of Memorandum & Articles of Association
  • Audited financials for the last 3 years

Furthermore, the Business Loan Application Form is a mandatory document which is to be filled when applying for a loan with a bank.
However, if you apply for a loan with a non-banking financial company such as Lendingkart Finance, you can get a business loan approval without having to submit copies upon copies of your KYC documents. Simply register on the Lendingkart website or use the Lendingkart app on your smartphone to submit your business loan application.

The process offered by Lendingkart Finance is completely online, where you are required to submit minimal documentation.For example, when applying for a Lendingkart business loan, simply upload the following digital copies –

  • Proof of Registration
  • Any one of photo KYC documents
  • ITR Statement
  • Bank and GST statements

A Lendingkart business loan allows you to maintain the cash flow, upgrade business facilities and equipment and invest in business expansion. Lendingkart offers customized interest rates and flexible EMI options to make it easy for you to grow your MSME.

Visit us at www.lendingkart.com to know more.

Lendingkart Instant Business Loans App – Loans Under 5 Minutes

Lendingkart Instant Business Loans

Business loans for startups are a difficult thing to achieve. For existing businesses, the story is different. A business can apply for a working capital loan based on its age and turnover. Banks have been the usual go-to option for people and businesses for getting financial aid. Alternative digital lenders or NBFCs have become the better choice for businesses now. Lendingkart, as a digital lender, offers short term working capital loans to existing small businesses. One can apply for a business loan through the website or the Lendingkart Instant Business Loans app on Google Playstore.

Requirements for Applying for a Business Loan on Lendingkart Instant Business Loans App

One must bear in mind that this app is for running businesses. The following borrowers can apply for a working capital loan –

  1. Businesses more than 3 months old
  2. Business that are seeking a supplementary short-term loan for managing sudden emergencies

The business should have an annual turnover of at least INR 3 lakhs.

 

How to Apply for a Business Loan through Lendingkart Instant Business Loans App

The app available on Google Playstore is simple to understand. You can use this link to visit the website and download the app. Or you can just search for ‘Lendingkart’ on Playstore to get the following results.

Lendingkart Instant Business Loans in Playstore Search on phone

Use the highlighted result above to get to the following screen.

Playstore Page - Install Lendingkart Instant Business Loans

Tap on ‘Install’ to get started.

The app will access your Google account to verify your identity. It will require access to Photos/Media/Files, SMS, Contacts and Phone. Camera, WIFI and internet data access for video proof.

Open the application from the Playstore page or by selecting the LK icon in the app drawer.

Lendingkart Instant Business Loans Installed

Basic Information

In the first screen, tap on ‘Get Started’ and enter your registered mobile number in the following screen. You will receive an OTP through SMS to verify your phone number.

Lendingkart Instant Business Loans Getting Started and OTP Verification

Please note the following three details required to apply for a loan successfully.

  1. Details of your business (Type, Date of establishment, turnover, industry etc.)
  2. PAN Number
  3. Working bank account (use the one meant for your business)

In the ‘About Your Business’ screen, enter the details as asked in the following fields.
Lendingkart Instant Business Loans About your Business

For Registration type, you can choose any one of the following options.

  1. Proprietorship
  2. Partnership
  3. Ltd.
  4. One-person company
  5. LLP
  6. Limited company
  7. Not registered

Lendingkart Instant Business Loans - Registration Types

In ‘How old is your business’, 6 options are available. From ‘Planning to start’ to ‘More than 5 years’.

You can choose the industry type of your company from the following list.

Lendingkart Instant Business Loans - Industry type

Choose the annual turnover of your company, the acting owner of the company and the PIN code of the business address. Enter the details carefully as you cannot edit these later. Click ‘Confirm’.

Lendingkart Instant Business Loans - Details

If your business doesn’t meet the basic eligibility criteria of being 3 months’ old or having 3 lakhs annual turnover, you might encounter the following screen.

Lendingkart Instant Business Loans - Ineligibility Business Vintage TO

Credit Eligibility Information

If the application proceeds to the PAN details screen, enter the PAN details of the owner. In case there are multiple owners, you must enter the name and PAN numbers of multiple people.

Lendingkart Instant Business Loans - PAN Details
Press the ‘Confirm’ button and please wait till the application verifies your PAN details. This process hardly takes any time. The following screen has a progress bar.

Lendingkart Instant Business Loans - PAN verification

Based on your credit history and credit score, you might encounter either of the following screens.
Lendingkart Instant Business Loans - Post PAN Verification

Pre-approved Loan Offer and Bank Information

In case you reach the ‘Pre-approved Loan Offer’ page, you can view details of the loan amount and terms and conditions applicable. You can also choose the option of ‘Proceed for Higher Loan’. In that case, it will be a longer process that we will cover in another article.

Lendingkart Instant Business Loans - Pre-approved Loan details

After agreeing to the ‘Pre-approved Loan Offer’, your loan processing will be initiated.
Post that, you will come across the following screens. Use the ‘OK. Let’s Complete’ button.

Lendingkart Instant Business Loans - Post offer acceptance

Add a bank account where you need the loan, along with the current business and home address.

Lendingkart Instant Business Loans - Adding Bank Account and Address

 

References and Personal Identity Information

Thereafter, add two references of people you know and trust. You can pick them from your Contacts list if you want.

Lendingkart Instant Business Loans - Adding References
Lastly, you need to record a 5 second video of yourself holding your PAN Card. Try to keep yourself in the outline of the window.

Lendingkart Instant Business Loans - Selfie video

Lendingkart Instant Business Loan App Process Completion

From here, you can go to the ‘Dashboard’ to view the details of your application.
In case your company is a ‘Pvt. Ltd.’, you must complete an online application form. ‘OK. Go to Application Form’.

Lendingkart Instant Business Loans - Online Application for Pvt. Ltd.

Important Points regarding Lendingkart Instant Business Loans App

There are a few things to keep in mind when using the application on your phone. Please ensure –

  1. Your phone camera and mic work
  2. The phone has internet access, through WIFI or through 3G/4G
  3. The bank account you provided has business transactions
  4. Your email address works, and you can access your emails
  5. You use your primary mobile number for registration
  6. You follow the instructions on the screens perfectly

While using the Lendingkart Instant Business Loans app, it helps if you –

  1. Use a current account as your bank account
  2. Provide as detailed information about owners as possible
  3. Provide detailed contact addresses to receive the agreement
  4. Connect your bank account (it is much faster that way and secure as well!)

Need more help while applying through the app? Stuck in the middle of the process? You can always reach the team at this number – 07949066222.

5 Clever Small Business Financing Options in India

Small Business Financing Options in India

For a new small business in India, like everywhere else globally, finance is the key to success and sustenance. Efficient and consistent fundraising is not the easiest of jobs. Still it does not have to be the toughest either. Traditionally banks tend to be the first and most preferred source of raising capital. Though they do not necessarily have to be the only option.

For a business to get to the stage of revenue generation and a profit making stage, the initial solid push is critical. That push comes from money. It might be for a brand new business starting out or a small business looking to scale up.

Here a few ways in which that money can be raised smartly.

Alternative methods to raise finance for a small business in India –

With the digital economy taking flight with rocket boosters, one has to think beyond banks. There are a number of other reliable options that can be explored. Such as:

Angel Investors

While most business owners are familiar with angel investors, in simple terms, these are individuals with interest, initiative and investing power looking to vest in businesses. They keep a close watch on sectors that they think will work best for them and will be interested to fund businesses that meet their profitability criteria. Typically they operate as part of networks where they collectively scour through proposals and business plans to finally decide which ones they are going to support. Getting the nod of an angel investor(s) to fund a business is a big deal for most businesses. Depending upon their background and expertise, angel investors also tend to take a keen interest in the business and offer advice and suggestions for improving the revenue generation. Need to know the 8 most prominent angel investors in India? Read this article on Forbes online.

Crowdfunding

Crowdfunding is already a great fundraising option albeit a fairly competitive space. Given the popularity and ease of accessibility it’s fast turning out to be a preferred method for particularly startups. Crowdfunding literally means getting individuals to invest or give money for a business idea by putting it out there on a crowdfunding platform. Of course, the idea has to have potential and the investors need to see some ROI before they commit. Even so, this one is a fairly new age method and those who know how to play it properly can get good support for their business or business idea. This link lists the top 15 crowdfunding websites/services in India.

Lending Institutions

There are a number of independent lending institutions that can help raise finance for a small business in India. The requirements to secure a loan can be exhaustive for a small business at most banks. Unlike banks, these institutions are willing to take the risk to finance a small but solid business if basic eligibility criteria are met. This is a very effective source as there are high chances that the loan will come through. These institutions exist to cater to the newer and smaller entrepreneurs who have trouble taking their proposals to traditional sources. While they don’t come with as great a repute as banks, the financial help provided by them is great for most small businesses. Lendingkart is one of such institutions in India.

Bootstrapping

While mostly explored by startups, bootstrapping can be an effective way of securing finance for smaller existing businesses as well. A small business requires capital when wanting to scale up or expand. It can also be for acquisition of equipment, logistics or payroll management. Bootstrapping involves either investing one’s own funds into the business or getting some money from friends and family at low interest rates. It’s imperative to understand that this method works if the loan requirement is not too high. As the popular saying goes, one shouldn’t keep all their eggs in one basket.

Venture Capitalists

Funding from a venture capitalist is like finding a diamond in a coal mine. It’s hard to come by, but scores incredibly big points for a business owner. Most VCs prefer to support existing small businesses as opposed to startups. If they find proof of potential and scalability, they come on board not only with money but with expertise, mentorship and a lot of guidance. They tend to stay with the business till it’s either acquired by someone or till it goes public. The only possible downsides are that they exercise control and there is a lot of accountability towards the VCs.

Small Business Loans – The Working Capital Angle

Ever since I started off in a retail lending team at HDFC Bank and even now, as a decision-maker in one of the leading fintech lenders of the nation, I have always been asked by clients about the kind of business loan that would be the best for every situation. Simply put, there is no single loan that comes with a ‘one-size-fits-all’ feature. But when it comes to which business loan can be used in many situations, if not all, I could lead you through my insights and let you decide for yourself why working capital loans offer the best advantages. The current market scenario is rife with financial options to help in the smooth running of any business, small or big. These options could include multiple banks and NBFCs or even new age fintech firms like us, the Lendingkart Group. Though the sources are a dime a dozen, availing business finance through official channels is always bound by regulations and people resort to borrowing from friends and family or the local moneylender. Continue reading

Small Business Loans – Why and Why Not

When it comes to financials that concern your organization’s growth and prosperity, you would never want to take a chance, would you? Additionally, when it comes to your personal life, you’d always want a steady flow of income and a safety net to secure your and your family’s future as well. This brings us to a rather peculiar scenario of growth prospects. Addressing the elephant in the room, we would need to look at the importance of business loans and the ways in which one should be using them best. Business loans, if taken at the right point of time can further an organization’s reach and scope in a broad manner. On the flipside, taking a business loan without having a plan for progress in mind can be more of a liability than an asset. So, what points should you focus on, as a small business owner, before going in for a working capital loan? There are a few key questions that you should ask yourself before you decide on a business loan – Continue reading