Your address will show here +12 34 56 78
Financial Management, General Finance

Small and medium enterprises in India are growing at an exponential rate. The Indian Government has launched several schemes for their benefit. Furthermore, the introduction of GST and online portals has increased the ease of doing business in India. You can now quickly gain approvals for new projects or much needed expansions. However, to get things started you will need ready capital for investment, and at Lendingkart Finance, we do just that for you. Lendingkart offers attractive interest rates in the range of 18-27% for short term SME loans.

With Lendingkart’s unsecured business loans, you can get small-ticket short term investment on-the-go. We have made the process completely online so that you can monitor the progress of your application in real-time. Lendingkart loans are approved for businesses having profitability in 2 previous financial years with a minimum annual turnover of Rs. 6,00,000. Other factors such as applicant’s age, income tax returns, and business stability are also used in determining the loan eligibility.

 

Easily Calculate Your EMIs

We offer a business loan EMI calculator which you can use to get an idea of EMI amounts you will be paying. The EMI is calculated based on the Lendingkart interest rate offered to you, the loan amount and tenure. For example, the EMI payable for a one lakh rupee loan, taken for 12-months at 18% interest per annum, will be Rs. 9,168. In similar scenario, if the interest rate is 27% p.a., then the EMI will be Rs. 9,602.

Attractive interest rates for SME loans. Find yours through the EMI Calculator

 

Needless to say, the higher the amount of your loan, the higher the amount of your EMI. The EMI calculator also helps you in budgeting and adjusting your finances to meet your EMI payment schedules.

 

The benefits of taking a business loan from Lendingkart

 

There are several benefits offered by Lendingkart in comparison to banks providing similar loans.

Attractive Interest Rates from Lendingkart

 

Applying for an SME Loan

Terms

Attractive Interest Rate

18% to 27%*

One time Processing Charge

2% of the Loan amount

Loan Duration

Minimum: 1 month, Maximum: 1 year

Loan Amount (min to max.)

Rs. 50,000 to 1 Crore

Part Prepayment Charges

NA

Pre-closure Charges

Nil**

 

*based on your business’s health and credit score

**Pre-closures are only allowed after the first EMI has been paid in full

 

We have a proprietary method of calculating interest rates which evaluates your loan application using advanced analytics. By enabling technical inputs and outputs we have made the process of calculating interest rates faster and more accurate. The attractive interest rates are calculated by factoring in several things listed below and are different for every partner SME.

  1. Loan Amount: The amount that you apply for, pending approval, counts towards deciding the interest rate. Generally, the higher the amount of loan, higher the possibility of a lesser interest rate from Lendingkart.
  2. CIBIL Ranking: If your CIBIL score and history are good, the interest rate we charge will be lower and vice versa.
  3. Balance Sheet: If you are earning good margins, we will take that in consideration while deciding interest rates on your loan.
  4. Age of Business: For long running enterprises, we offer special discounted SME loan rates.

Business Friendly Loan Approval and Pre-closure Charges

 

We do not believe in charging extraneous charges and fees from our customers. That’s why we have one of the friendliest pre-closure policies – there are no pre-closure charges. After paying the first EMI, you can prepay the full loan amount, anytime. Added with the benefit of attractive interest rates, it is a great way to finance any short term business requirement.

Also, we only charge 2% of the loan amount plus service tax as processing fee. It’s a one-time fee which you don’t have to pay if you choose to reapply for the same loan amount upon closing.

Minimum documentation and turnaround time

 

When applying for a business loan with Lendingkart, you have to submit only a handful of documents. And we process every loan application within 3 days of document verification.

Documents required by us are:

  1. Address proof (Aadhar Card, Voter ID, Bank Statement, Proof of registration, etc.)
  2. Identity Proof (Passport, Aadhar Card, Driving Licence, PAN, etc.)
  3. Proof of Business (PAN, GST Registration, Trade License, Registration Certificate issued by RBI or SEBI)
  4. Copy of PAN card and Income Tax Returns for last 24 months
  5. Bank Statement of last 12 months

 

To know more about applying for a business loan with Lendingkart, head over to our website and sign-up for a free account.

2

Business Strategy, General Finance

As an entrepreneur in today’s times, it is important to understand the value of customer engagement and how it is linked directly to the success of your business. An interactive relationship with your customers helps boost positive brand loyalty and this goes a long way in boosting the overall credibility of your business.

 

The advent and consequently, the rise of social media has led to customers having almost direct access to businesses and brands that they purchase from. Leveraging this channel in the most optimal possible way should be an integral part of your business strategy and planning.

 

While there area number of ways to connect and engage with your customers, social media handles are the most popular and effective. The ease of access and your clientele knowing that they can reach out to you with any sort of comment, suggestion, complaint or idea gives them a feeling of being heard and helps reiterate how important they are to you.

 

Customer engagement through social media can be promoted in many ways:

 

By sharing useful content: Good content is a mix of information, releases, your own product promotions and interesting articles or blogs that generate interesting discussions about your industry. Customers get bored with pages that only highlight their products. Think of variety when posting to sustain interest.

 

Being answerable: This is very critical as a big part of customer engagement includes making sure you reply to any and every comment, rant, review or suggestion that has been posted on your handles. Don’t let this slip and this can really have a negative effect if not taken care of.

 

Regularity: Find the right balance when it comes to posting. Don’t spam but post regularly enough so that your customers do not forget about you. There is a thin line and it is important to have a dedicated resource looking after your social media platforms.

 

Customer engagement helps returns and refunds. Here’s how:

 

Most customers are looking for quick resolution when it comes to returns and refunds. Including this aspect in the customer engagement strategy is a must.

 

Make it easy- Whether it is online or through a customer call, make it easy for your customers to return products and apply for refunds. Positive customers engagement is fuelled by not just the sale but also the returns that needs o be taken care of very sensitively. In fact, this is one thing that can prove to be the Achilles heels of many a businesses.

 

Define the terms clearly: Customers need to know what the terms for refund and returns are and this needs to be very clear, transparent and out there through the entire sales process. Find ways to get the information to your clients in advance so that there are no rude surprises for them. This will count as a credible point when it comes to rating your customer engagement.

 

Staff: Nothing can be more critical to your customer engagement than your staff. And this means both online and offline or via phone. Your staff needs to be knowledgeable about your products and return policies and be able to handle your customers in the utmost polite manner. A bad experience with a staff member can damage the reputation of a business immensely and this is especially true during returns as customers are already on the back foot and anticipating problems. Alternatively, a positive experience here can lead to a very healthy and long customer association.

 

Evidently, customer engagement cannot be treated as a by the way, one the side kind of activity. It has to be a full blown, thought through process that involves methods that are effective, innovative and garner successful results. There is no running away from this. This concludes our series on Customer Engagement. If you haven’t read the previous articles, you can visit Why Customer Engagement Is Important? Part 1 – Rave Reviews and Rants and Why Customer Engagement Is Important? Part 1 – Revenue Impact. We’d love to know your thoughts in the comments.

0

General Finance
The rapid homogenising of product and services has made marketers shift focus to customer experience (UX). In our previous article, we explained the importance of reviews and rants leading to customer engagement for online and offline enterprises. In this post, we will be analysing the impact of a positive UX on your revenues. Most businesses struggle with this very important aspect of sales, as UX helps in faster customer acquisition and increased brand awareness.

User experience is the forte of your marketing and sales departments. They curate and deliver the information needed for successful pitches. Therefore, the information should be replete with industry insights and virtual product demonstrations. A McKinsey report about use of transformational sales and marketing methods sheds some light on the importance of UX. The report states that companies using such methods have 90% higher sustained growth than those who do not. And, sustained growth naturally leads to sustained revenue generation and vice-versa.

Use of Digital Interactions and Interactive Storytelling

Adoption of disruptive technologies is fast transforming the product as well as the customer. A customer’s approach is no longer ‘feature based’ but is rather ‘value based’. Customers these days like to use self-guides and engaging content for solving their problems. Thus, creating a solution that puts customer in the driving seat can give enterprises a means of self-directed sales.

Cross Platform Support for a Seamless UX

IoT has enabled so many platforms and services that having a UX for singular platforms is no longer feasible. A customer should be able to take the experience with him when switching between platforms. For example, your desktop site cannot be worse off than your mobile website or app. You can however, include perks to guide customers to your preferred platform, as is done by Amazon for its mobile app.

Targeting B2B Customers

According to studies, most B2B customers have come 57% of the way through a buying cycle before having a one-on-one with your sales representatives. Thus, the number of lost deals for B2B marketers should be unsurprising. If you are a B2B seller, then your UX should be able to communicate with your customers at every turn in terms of features and value. This way, when your sales representative presents his case, it will already be a done deal (the importance of self-directed sales, remember?).

Online and Offline Parity

Being able to provide a seamless experience when a customer interacts with you offline – either without internet access or physical visits – is also an important aspect of UX. Consider Apple’s website, call centre and store services as an example. Users get the same ‘cared for’ feeling when interacting with any of the company’s sale and service points of contact. Which in turn allows Apple to charge exorbitant margins on its products.

Dependable User Analytics

All processes which rely on user experience require constant tweaking and refinement. Therefore, getting actionable analytics data on user preferences and behaviour is imperative for driving revenues with UX. Analytics also help you understand the nature of ROI on your UX experiments. Using cloud computing and machine learning tools can put you ahead of the competition in understanding trends and market outlook.

Constant Improvement is Necessary

For continued revenue growth, a continued effort in the user experience is a must. Customers should not feel neglected after you have made the sale. Constant engagement through emailers, app updates, notifications, etc. not only makes users loyal, but also drives brand image and boosts sales.

Concluding thoughts: User experience is a key indicator of a company’s commitment. A positive UX strategy can boost your company’s revenues, just like it does for Apple, and a negative one can do the opposite, just like it did for Nokia.
0

Financial Management, General Finance

Introduction

“Sorry, we won’t be able to process your loan application because your credit score is too low.” As a person who has availed loans before, I can testify to how much this single statement can hurt. Especially when there is a pressing need of funds, and you know that the low credit scores are mostly your own folly. Banks and non-banking financial institutions do not take any pleasure in harming your credit score on purpose. Delays in payments, improper follow-up, willful defaults are just some of the culprits that lead to a bad credit score and report.

We’ll help you know what your credit report is, how to read and understand it and some tips on improving your credit score faster.

 

Credit Bureau, Credit Scores and Credit Reports at a Glance

I’m sure most of you would be familiar with the term ‘CIBIL Score’. CIBIL is one of the four institutions in India that collect and compile credit information of individuals and business entities from across the nation. Along with Credit Information Bureau of India Limited (CIBIL), Equifax, Experian and CRIF High Mark are the Credit Information Companies that deal with credit data in India. CIBIL is by far the oldest and the most popular, having its origins in the year 2000. Experian has been in existence since 2006 and achieved a license of operation in 2010. Highmark and Equifax also received operating licenses in 2010.

Lending, be it for personal, business or residential purposes, is always laden with risk. Credit Information Companies provide the data to lenders that helps them take a rather calculated risk instead of a blind one. Based on how a business has been performing financially or how a person’s bank records are, credit scores are given by these agencies within a range specific to each of them. A small comparative chart of the same is shown below –

 

CIBIL

Equifax

Experian

CRIF High Mark

Score Range

300 to 900.
900 the best
300 the worst

1 to 999.
999 the best
1 the worst

300 to 900.
900 the best
300 the worst

300 to 850.
850 the best
300 the worst

Good Credit Score Threshold

700 and above

650 and above

700 and above

720 and above

Poor Credit Score Threshold

600 and below

500 and below

600 and below

640 and below

 

The good and bad thresholds are the trends that are followed by most banks and/or NBFCs when deciding to issue loans or credit cards. There might be institutions who can define their own set of credit scores that they consider good or bad. This is just a general idea. You might notice there are gaps of quite some values in between the good and bad score thresholds. These are the popular ‘gray’ areas.

If your credit score falls in these gray areas, it is mostly up to the lender whether to approve or reject a loan or credit card. There are some people for whom the CIBIL TransUnion score would be in negative or in single units. In such cases, mostly the person has never had any loan or credit facility ever. For them, most lenders do quite a few background checks, but if everything is fine, loans and credit card approvals are not far away.

Credit scores are just a summary whereas credit reports are the more important reports that you should be keeping an eye out for. These reports deal with extensive information and need to be read carefully. Every loan you have ever availed, and every credit card you have used is listed in here, along with the payment delays, delinquency status and status of the credit instrument. Sometimes, there might be inconsistencies in these records and based on the same, you can even file a dispute with the respective credit bureau. Based on the validity of the dispute claim, they will get in touch with your lender and sort out the problems in your report.

Each bureau takes a certain amount of time to generate your report. Every report generated comes with an associated amount of fees. The following table gives a general overview of the rates and time taken by these bureaus for generating credit reports. Additional services offered by the bureaus is also mentioned in the table –

 

CIBIL

Equifax

Experian

CRIF High Mark

Services

For Individuals –

CIBIL TransUnion Score

Credit Information Report

Market Insights

For Companies –

Portfolio Review Reports

CIBIL Company Credit Information Report

CIBIL Bureau Analyzer

Extra services –

Portfolio Management

Fraud Prevention

Customer Acquisition

Custom Solutions

For Individuals –

Equifax Credit Information Report

Equifax Alerts

Equifax Portfolio Review

Equifax Risk Score

For Companies –

Credit Risk and Fraud Management

Portfolio Management

Industry Diagnostics

 

For Individuals –

Experian Credit Information Report

For Companies –

Customer Acquisition

Collection and Money Recovery

Customer Management

Data and Analytics

Customer Targeting and Engagement

 

For Individuals –

CRIF High Mark Credit Report

Portfolio Management

Alerts

Geo Analytics Consulting

For Companies –

CRIF High Mark Credit Report

PERFORM Score

Portfolio Management

Extra services –

Verification

Data Quality Management

Credit Assist

ETA for Credit Report

5 minutes for CIR

7 days for Detailed Report

10 days

5 minutes for paid CIR

3 days for free CIR

5 minutes for paid CIR

3 days for free CIR

Fees

Free once a year INR 500
INR 800
INR 1200
based on subscription

INR 400

Free

INR 399 for detailed report instantly

Free

INR 399 for detailed report instantly

 

When to Use What

Normally, getting a credit report and score from any one bureau should work for any individual or company. If you are running a small business, it is advisable to get separate reports for yourself and your business from at least two bureaus every 6 months. These reports will also have varying credit scores depending upon the usage and repayment of your loans/credit cards and EMIs/bills respectively.

That way, you can easily keep track of what problem areas are in the reports that can be fixed. Often, sometimes rectifying incorrect data in the reported information can go a long way in increasing credit scores. In all the bureaus, you will need at least one government-issued identity proof and acceptable address proof to raise a dispute. If you have multiple credit cards or multiple loan accounts, it can be a bit tough to keep up with the process of CRIF High Mark. Experian and CIBIL do not require as many multiple checks to show you the credit report and the corresponding credit scores.

With a basic overview of credit scores here, we are presenting you some links where you can access an annual free credit report from some of these bureaus –

  1. Free CIBIL Report (Once a year) – https://www.cibil.com/freecibilscore
  2. Paid Equifax Score and Credit Report – http://www.equifax.co.in/consumer/forms/credit_report/en_in
  3. Free Experian Report – http://www.experian.in/consumer/experian-free-credit-report.html
  4. CRIF High Mark Report – https://cir.crifhighmark.com/Inquiry/B2C/B2CommercialPortal.action

Did you find something in your reports that you don’t remember? While you can raise a dispute any time, it is better to be safe in the future. Perfios is a money manager that can track any financial account for you and is free for individual users and can include small businessmen effectively. Do check it out!

If there’s something in your credit report that you don’t quite understand, read our next article to get an insight into how to read the more complex reports from bureaus.

0

Business Strategy, General Finance
With GST having become a reality now, every business and service provider is dealing with its ramifications, the good ones as well as the bad ones. As a business owner, no matter what you think of GST, India’s biggest tax reform is here to stay. In case you are looking for how dual GST works or want to have a general idea about GST, please click here to read the previous article.

In such a scenario, compliance is no longer a choice but a mandatory requirement. As a small business owner, it is helpful to understand what needs to be done to stay ahead of the curve.


Managing Your Working Capital:

Inability to generate and consequently not being able to manage working capital effectively leads to slowdown in growth for many small businesses. GST affects working capital as well. The trick is for you to understand how and then also to find a way to use the same to your advantage.

Earlier, there was a limit to what the business owner could claim as credit, especially for money that was spent on overheads. Under GST, this concept of input tax credit has been broadened. So, now you can claim input tax credit on all tax paid for services used for furthering of business. Thus, cost of operation will go down and margins will increase. The bottom line, you will need to understand input tax credit quite well.


Digitization:

One of the biggest changes under GST is that the process of taxation and compliance has been made online. Given that invoice matching is critical to GST, investment in technology as well as capacity of staff are things that you will need to invest in big time. In addition to this, you can also look at purchasing some compliance software that will make the task of filing much easier.


Deeper understanding:

To play the game well and stay ahead, you need to invest time and get involved to fully understand the implication of GST and how it will affect your business. Rules of compliance should be thoroughly considered and all required transitions should be expedited. It will make sense for you to get a good tax consultant on board who can offer advice and complete transition of any sort of implications under the new guideline.


Competition:

The GST game, as we are calling it, will open a world of opportunities for you as a small business owner. It will allow you to play on the same field and market along with much bigger businesses. By the opening of this platform you will be able to compete with the big boys. One of the rules to stay ahead in the same thus, would be to bring out your most dynamic strategies and leverage the competition to your advantage, the best that you can.

When it comes to the overall effect of GST on small businesses, there are both pros and cons. As a business owner while it will be easier for you to start a new business with better and more streamlined logistics as well as faster delivery of services, there is also the downside of compliance costs going up.

Given that the tax reform has only just come into implementation, whether the effects of it are going to be more positive or negative remains to be seen. Your business needs to be GST ready and that is a reality. There are steps that you can take to ensure that you are optimizing the benefits and navigating the challenges effectively. Other than that, the larger overall scoreboard of this GST game is yet to come to the fore.
0

PREVIOUS POSTSPage 1 of 2NO NEW POSTS
Show Buttons
Hide Buttons