Small Business Trends to follow in 2018

Every year pans out differently for small business owners. The rapidly changing scenes of our growing digital economy means new trends and practices are getting in and out at regular intervals. Take for example the phase of demonetisation and then the implementation of GST, both of these decisions have had quite an impact on small business owners and influenced their financial, technological, and promotional policies.

Today, we are sharing some trends that a small business owner needs to keep an eye on in 2018.

Moving to the Cloud

Software as a solution (SaaS) and cloud based technologies are taking over the world of small, medium and large scale business owners alike. These technologies have marked quite a discernible shift in IT spending as more companies are now embracing the sharing economy instead of spending incredible amounts on in-house IT development. Digitisation and sharing industry is expected to grow even further down the line and if your small business has an online component, you should start looking for ideal partners to integrate your services with the digital world.

Personalised Marketing

With the rise of Big Data and machine learning AI systems, online marketing has become the hotbed of business activities. The humongous amounts of data coming in from digital devices and platforms and the tremendous power of cloud computing has made personalised marketing possible, where a user sees and consumes high-value personalised content at every step. Modern marketing tools from Google are widely used for identifying target audiences and creating location specific content to generate more leads and conversions.

A major driver of the personalised marketing bandwagon is the smartphone. Mobile Ads are now generating more leads than their desktop counterparts and as a small business owner, a mobile friendly website or app can help you gain crucial advantage over the competition.

Similarly, social media marketing and paid ads on platforms like Facebook and Twitter have also emerged as a leading personalised marketing platforms. With billions of people logged in worldwide, these platforms are yet to witness the long-tail growth in the SMB category and can be your way to success.

Digital Finance

A few years ago, the advent of e-commerce was a new era in the world of business and now that distinction has gone to digital finance. Fintech firms have made it easier to get business loans online by offering quicker approvals, lower interest rates, and flexible EMI schedules. Furthermore, re-approvals of loans once they are repaid is now instantaneous. Such facilities have not only improved the ease of doing business but have also spurred economic investment in the country.

Moreover, Fintech firms like Lendingkart are actively educating small business owners on best business practices to make them more agile and street smart in money management. For example, more small business owners are now aware of keeping their private and business finances separated. Also, the number of business owners applying for small ticket working capital loans has increased in recent years. If you are wondering how that makes a difference then it’s about time you too have a closer look at this financial trend.

Small business owners often make the mistake of using the company’s capital for working capital expenditure. Since the working capital expenditure is a recurring expense (on daily, weekly and monthly basis), eventually the SME owner runs out of money to keep the business afloat and doesn’t have any assets to show for all the trouble. On the other hand, business owners who are utilising working capital loans to run their daily operations while using the company’s capital to invest in equipment and establishment have a two-fold advantage. They are running business operations with a loan that will pay for itself and they are investing in assets which will pay for themselves, thus it’s a win-win for them.

Concluding thoughts

Workplaces are going to change significantly in coming years. Digitisation, e-commerce, automation, cloud computing and online finance are no longer just buzz words but stark realities of our time. As a small business owner, embracing the digital economy is the only way forward for you, and the sooner you do it the better will be the results.

To know more about us, visit www.lendingkart.com

Business Registration – Helping in Faster Loan Approvals

How Business Registration Helps in Faster Loan Approvals

When your business model is ready to move from its pilot phase, the first thing to do is to register your company. Business registration in India can be done online through the Ministry of Corporate Affairs portal. Apart from giving legality to your operations, there are numerous reasons why you should register your business.

Get Faster Loan Approvals

Business registration makes it easier to raise money through business loans and to get backing from investors. The lenders, such as banks and non-banking finance companies (NBFCs), are more trustful of a legally registered company or business. Hence, making it easier to get faster business loan approvals.

For example, if your company has been registered and is in business for more than 6 months, you can apply for a business loan from Lendingkart – one of the leading NBFCs in India. Lendingkart promises business loan disbursals up to ₹1 crore within 3 days of your document verification.

 

Minimize Your Personal Liability

If you are a sole trader or running a partnership firm, it makes you liable for all aspects of the business, including the debts and losses. The costs of any accidental product defect or service disruption are to be borne by you, which can be financially risky.

After business registration, a company becomes a separate legal entity and setting up one can help protect your personal assets from a business loss.

Decrease Your Tax Liabilities

Since, your business becomes a separate entity, it also becomes a separate tax payer. Additionally, you can apply for tax rebates and subsidies under various programs, such as “Startup India” and “Skill India”, being run for the promotion of MSMEs by the government.

Streamline Ownership

Business registration helps you clearly define the roles of different founding members and their relative share in the business. It will give the company a steady leadership and help in resolving any future conflicts within the top-level management.

Establish a Brand

Through business registration, you will also can establish a brand image among your customers and suppliers. It will also give you a position of strength when dealing with third parties, as the contracts will be between companies rather than owners.

At Lendingkart, we are always happy to share or experience in the MSME finance to help new companies and entrepreneurs. If you are looking for fast business loans, use our website or download the Lendingkart app from Google Play or App Store to get a quick quote.

Credit History – How It Gets Better Loan Amounts

Credit History and its Importance

When you go for a business loan, the one thing that matters the most is your credit history or business credit score. Credit history is basically a statement of your loans and repayments in the past. Credit rating is assigned by rating agencies such as CIBIL and CRISIL.

Here are the benefits of having a good credit history.

Faster and Better Business Loans

A good credit score indicates that you have been paying your dues regularly and in a timely manner. This bolsters your business’s standing in the eye of the bank or the NBFC.

When the lenders see that your business is in the green of the credit scale, they will offer better loan terms. You will be able to secure a higher loan amount, a lower rate of interest and flexible repayment options with auto renewal terms.

Leasing Premium Office Space

The benefits of credit score are not limited to getting working capital loans or commercial loans only. We all know that a premium location can work wonders for your business operations. Landlords of premium properties also ask for credit reports these days to ensure your business’s ability to pay the (higher) rent.

Attracting Investors

Apart from business loans, investments are another source of financial help for budding entrepreneurs. A good credit score indicates healthy business practices and a good ROI. Thus, having a good credit history will build investor confidence in your business.

Therefore, it is quite important for a modern business to retain a healthy credit score. There are several things that can help you achieve that such as financial prudence, asset and liability management techniques and business loans.

How a business loan can help you maintain a good credit history?

Getting a loan and repaying it in a timely manner will build up your credit history. However, you must be very careful with the terms and conditions for your first business loan.

It might be that the interest rates for your first business loan are on a higher side but flexible repayment terms can offset that disadvantage. For example, Lendingkart Finance offers unsecured business loans up to ₹1 crore with options to repay in fortnightly or monthly instalments. If you want to pre-close your business loan after the first EMI, there are no pre-closure charges as well.

Such loan terms make it easier to repay your working capital loans and get a higher credit score for your business. To know more, visit us at www.lendingkart.com or download the Lendingkart smartphone app.

Lendingkart offers Attractive Interest Rates for SME Loans

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.

750% Growth – This is How Success is Defined!

The Curtain Call of Coir – G Sindhu’s Entrepreneurial Story

In 2007, a remote area of Modakupatti in Tirupur saw the emergence of Evergreen Enterprises. As a company that dealt in coconut and coconut products primarily, it wasn’t much of a contrasting setup in the locale. The defining trait in the company was that it was being spearheaded by a woman, being in an industry that is mostly male dominated.

A graduate from the University of Warwick, G Sindhu made a bold move of taking over her husband’s family business. While keen business acumen and dedication were the keys to turning the tables in her favor, this woman entrepreneur opines that having a sharp lookout for the relevant opportunity can go miles in making the best of any situation. While the initial challenge was convincing the family to let her take control of the business that comprises 99% men as suppliers and buyers, there were further business challenges as well.

The challenge of coping with the shortage of human resource was handled in a very smart way. Locals of Modakupatti were trained and recruited to serve as the manpower for the startup. This has resulted in the employment of over 100 uneducated people and now they have a steady livelihood thanks to the company. Evergreen Enterprises works mainly out of Modakupatti, and has a business office in Coimbatore.

For the problems concerning funding, G Sindhu tried approaching banks. But unnecessarily long processes and requirements of collaterals made the entire situation too muddy to cope with. Another bold move on her part was approaching an alternative lender, Lendingkart. The business had taken up all of the pooled capital and she was looking for cash flow. “The speed of processing the loan was very fast, compared to public sector banks”, says G Sindhu. An avid supporter of the role of technology in furthering a business, a fintech company like Lendingkart made more sense to her than traditional banks.

In just a year of taking over the business, G Sindhu has made the company increase its turnover by 750 percent. In the past 2.5 years, the number of clients for Evergreen Enterprises has shot up from 10 to a considerable 140.
Citing a few words on accountability and goal-setting from the successful entrepreneur herself – “(We) follow a system to measure the progress and set the goals every day, every fortnight and every 45 days. This fosters accountability among team members.” Working alongside farmers, clients and team members, she suggests that an amiable environment for all of them is the key to growing a business.

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