How an Unsecured Business Loan is the Safest Bet for Growing Your Business?

When you are planning to raise short-term finance, an unsecured loan can be the best way to do so. The safety offered by an unsecured small business loan is one of its primary selling points. You are not required to put up equipment or property as collateral when applying for an unsecured loan. Notwithstanding the fact that most small businesses lack adequate collateral assets, the elimination of this requirement makes these small business loans more accessible for MSMEs.

Moreover, the entry of NBFCs has further democratised the Indian small business loan market. New age lenders use the power of internet, cloud computing, big data and AI to process loan applications faster and with higher disbursement ratios than their banking counterparts. For example, applying for a business loan online with Lendingkart can get you the money in as less as 72 hours while a bank takes at least 7 days to process the same application.

Here is how a small business loan helps in your company’s growth.

Ensures operational successes

Every business relies on operational stability to earn profits. A small business loan allows you to purchase raw materials, finished goods, or other items that you need to keep in ready stock. Furthermore, you can also utilise the loan funds to pay wages and salaries, and clear immediate bills and expenses.

A small business loan also helps you in working capital management when your bills receivables get delayed or there are unexpected operational costs to be taken care of.

Safeguards your bottom-line

By offering quick and easy liquidity, small business loans give businesses a way out from the vicious debt traps practiced by unorganised moneylenders. Now you can safeguard your bottom-line more easily with MSME loan funds without having to worry about long-drawn loan approval processes from banks.

Dynamic ticket size

An unsecured business loan is not given against a collateral, therefore its value is not tied to the value of a fixed asset. You can get an unsecured loan starting from Rs. 1 lakh and go all the way up to Rs. 1 Crore to fit your business requirements.

Flexible Repayment

Small business loans from FinTech lenders comes with another plus i.e. the option to pay EMIs on fortnightly or monthly basis as per the loan agreements. So, not only can you get the loan funds quickly but you can also repay them faster to get another loan approved. For example, Lendingkart approves and disburses the paid-up loan amount without further processing charges or additional document requirements.

Multi-purpose usage

An unsecured business loan is a short-term business loan, thus, lenders do not impose any restrictions on its usage. You can use the loan funds for any number of business activities which makes them excellent for boosting your working capital, business investment and marketing activities.

Now, after reading the benefits, the question you must be asking is that;

What if you default on an unsecured business loan?

Well, defaulting on the loan can ruin your credit score for starters. And, you might not get loan future loan approvals due to the bad credit history. Which in turn will make the loan repayment even more difficult. The lender may also file a lawsuit if all negotiations for repayment fail.

However, in most cases the lenders will consider a revised repayment plan if you let them know of your financial difficulties in advance.

Wondering where to apply for a business loan online? Click here to visit us at Lendingkart and start your first online business loan application.

EMI Calculators and Business Loans – Facts and Myths

EMI Calculators and Loans – Facts and Myths

When you search the internet for getting a small business loan for your enterprise, a number of business loan EMI calculators and loan offerings pop up in your search results. For a person applying for their first commercial loan, it might get confusing. This post helps you in understanding the formula used by an online EMI calculator to calculate the monthly instalment for your MSME loan. Furthermore, we try to dispel some common myths associated with business loans.

How EMI Calculators Work?

EMI means Equated Monthly Instalment. It is basically the amount you pay every month until the loan is paid in full to the lending institution. Every EMI has two components, principal and interest. Both components are paid off with every consecutive EMI payment.

Here is the formula used for calculating an EMI –

emi calculators formula

Using the formula, you can self determine your monthly EMI on a business loan. Lending institutions such as banks and NBFCs charge a minimum processing fees and other charges for disbursal which are generally deducted from your total loan amount.

Benefits of Business Loans

Unsecured business loans let businesses fund their exigencies and can be used for expansion or to meet working capital requirements. Also, unsecured business loans are one of the quickest ways to raise liquid capital without putting up a collateral or security.

NBFCs such as Lendingkart offer quick renewal of loans upon repayment without any extra charge, which means you can easily maintain your working capital in-flow indefinitely.

Myths Associated with Small Business Loans

There are several rumours and myths that float around the web and in business circles about getting a business loan from an NBFC or banks. However, not everything you see or hear online is true.

Myth 1: Getting a business is the hardest thing to do

Obtaining a business loan is not an insurmountable task. You can reduce a lot of frustration by doing some due diligence before applying for a small business loan. With your documents and eligibility requirements in order, you can easily get an unsecured business loan from an NBFC or a bank.

Lendingkart promises loan amount disbursals within 3 days of document verification. What’s more? The process is completely online. You can simply login on the Lendingkart website or mobile app to apply for a business loan.

Myth 2: A Perfect Credit Score is Required for Getting a Business Loan

While your CIBIL score will be taken into account by the lending agency, it does not have to be perfect. A good CIBIL score that is more than 700 is mostly enough to qualify for a business loan. There are a number of other factors such as your business’s health, years of operation and profit margins, which are considered by the lenders.

Myth 3: The Best Way for Getting a Business Loan is Through a Bank

Well, this is no longer true because banks have a very narrow product portfolio considering the flexible credit requirements of modern MSMEs. Therefore, Non Banking Financial Companies are a much better choice for availing quick working capital loans and unsecured business loans.

Along with fast processing times for MSME loans, NBFCs also offer the ease of renewal and waiver of pre-closure charges.

Concluding Thoughts

As the digital reforms to our economy take off, getting online finance for business is going to become even more easier. At Lendingkart, we have already limited the process of getting business loans to a few simple steps. You can use our online EMI calculator to plan and manage your monthly instalments as well.

To apply for a business loan, click here.

How to Get a Small Business Loan for a Startup

Small Business Loan to Start a Business

For a new entrepreneur, one of the biggest hurdles to resolve and overcome is the need for capital. Funds are critical to any business venture. Finding ways to raise money can sometimes become a full-time occupation for a business owner. A business loan can be a very important supplement to the life blood of a company.

There are many ways that startup capital can be raised. There is the option of:

Going for a bank (most bank offer small business loans these days)
Exploring and applying to non-banking financial institutions
Using alternative methods such as crowd funding
Approaching angel investors and venture capitalists

For most new businesses the preferred method out of above is to apply for loans with banks and other alternative lending institutions.
 

How to Get a Small Business Loan to Start a Business

As a startup or a business idea in a nascent stage, the best bet to raise funds lies in non-banking financial institutions. It’s recommended to direct one’s energies towards acquiring capital from alternative lenders rather than traditional banks.

Most banks prefer to give loans to small businesses that are already in existence as opposed to someone who is just starting out. Banks prefer to cover risk and it’s for this reason that the documentation and evaluation processes are long drawn and rather stringent. For a new business, sometimes it can be difficult to meet all requirements. This greatly affects the chances of getting the loan approved.

Coming to alternative lenders, they make the process rather hassle-free and easy to get through. Some of the advantages that non-financial banking institutions offer are:

Slightly more flexible requirements and eligibility criteria
Possibility of applying online very quickly
Quick turnaround time on loan approvals
Instant loan disbursement after approvals

Amongst all these the leniency on the eligibility criteria as well as requirements are the most beneficial.

It is helpful to have lenders who will be willing to consider giving out money to owners who may not have a detailed and long credit history. Your top pick should be lenders who focus on your business idea and go-to-market strategy rather than those who focus on cash flow history. Armed with a solid a dynamic business plan, the loan can be applied for still.

Process to get a Small Business Loan to Start a Business

 
There are different types of business loans available and depending upon the requirement of the business, a relevant one can be sought and applied for. Some popular options of business loan include working capital loans, startup loans, cash advance loans etc.

The first step is to determine how much money is needed and what it is needed for. This will go into the business plan that will be evaluated during the loan approval process.

Once the amount has been determined, the next step is to do some research and seek out the available options in terms of lenders in the market. Choosing a lender is also a process that requires time and effort. Things like credibility of the lender (reputation in the market), interest rate being offered, support system on offer, options of how loans can be re-paid, process of loan application etc. need to be factored in before choosing the one(s) which would be applied for.

Once identified, the next step is to get all the required documentation ready and up to the mark. A great business plan which details out information about the business idea, the profitability of the idea, the scaling plan, the vision behind the idea, projections regarding staff and infrastructure as well as the marketing strategy. A clear and transparent business plan goes a long way in putting the odds in the favorable position.

The final step is to apply and go through the process.
 
As mentioned, the turnaround time with non-banking financial institutions is rather quick and if all is okay, the loan should come through within a fortnight or less.

Of course, if you have a business that is already 6 months old or more and has a revenue of INR 12 lakhs or more, you can always apply for a working capital loan at Lendingkart!

What do you think about this article? Please let us know in the comments. If you need to know more about how important it is to choose the right business loan, you can read our article here. We have also written in detail about small business financing options in India and you can read about it here.

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.

Credit Scores – Part 1: The What, Who and When

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.

Why Dual GST and How it will affect your Business?

Businesses all over the country have felt the impact of the government’s decision to change the country’s goods and services tax code. The new tax, GST, will change the way our country does business, affecting all businesses engaged in sale/supply of goods or supply of services.

What is GST?

The Goods and Services Tax (GST) is a revised and comprehensive form of previously implemented Value Added Tax (VAT). The GST is an indirect tax and replaces many cascading taxes levied by both Centre and State governments. Supply chains, ERP services, product pricing, etc. will all fall under the ambit of GST.

What is Dual GST?

The Union Government and the States were unable to form a consensus for tax revenue sharing. Therefore, the government has introduced a dual GST system – Central GST (CGST) and State GST (SGST).

Example – If a dealer in Rajasthan, selling goods to consumers within the state, makes a sale of INR 20,000 at 18% GST rate. Then the dealer will collect INR 3,600 as total tax. In this case CGST and SGST will be shared by Centre and State equally as INR 1,800 each.

Effective July 1, both CGST and SGST are applicable on the taxable value of goods and services shipments pan India, except in the State of Jammu and Kashmir.

Impact of GST on your pricing

Implementing GST will reduce the impact of numerous indirect taxes which were applicable on your manufacturing and supply chain. This will allow you to decrease the cost of product and services in mid to long term and pass on the benefits to your customers. Although, for various services, the short-term prices may go up as the tax rate has been raised by 4-6%.

Effects of GST on your SME:

The dual structure of GST is meant to be fairly simple and transparent, with only a handful of CGST and SGST rates being implemented. The new tax regime includes both costs and benefits for SMEs:

• Reduction in the number of taxes you were paying earlier. However, Customs Duty and some other levies are still in place for imports and excepted items under GST

• Reduction in your transactional costs due to simplified tax compliance code and online procedure • On the flip side, GST might increase your operating costs if you do not have tax professionals to look after your annual filings. So, hiring an expert may be your only way to have tax compliance

• Compliance issues may also arise due to the mid-year implementation of CGST and SGST

• If you are running a manufacturing SME the tax burden may increase since the excise laws exempted units below 1.5 crores whereas the limit is now 20 lakhs

Who should register for GST?

• If your business is registered under VAT, service tax or excise duty, you can move your registration to GST. Also, firms and companies with a turnover of 20 lakh or more per annum are mandatorily required to have a GST registration. If your business involves inter-state transactions, GST registration is mandatory for you, regardless of the turnover

• Websites and portals where supply of goods and services is managed are also required to register with GST without exception

• An Input Service Distributor, which means a head office that receives billing for all its branches, is also mandatorily required to register for GST

Have you adapted to the new GST regime, and how much impact do you think it has had on your business? Let us know in the comments.

The sequel to this post will deal with how to leverage GST in getting competitive edge for your business.

11 Important Things Your Competition Can Teach You About Finance

Competition is the bane and blessing for every business owner. As a business owner you need to keep an eye out for what your competition is doing. This is the ground rule and needs to be followed. In principal, keeping a track of others who are in the same business as you whether it’s for their marketing tactics, their communication, their growth rate and numbers or their new product or service announcements is all part of the game.

The question you might ask is- why do you need to do this?

Here’s why. To learn from the successes and even failings of your competition is smart. Others might be in different development stages than you are and already employing tactics that you intend to explore. Knowing how things are working for them helps you to plan and execute better. Plus, they might be doing some things right. It’s good to adapt and use those solutions for your own business wherever applicable.

For example, let’s take finance. Here are some important things your competition can teach you:

Scale:
As a business already in existence, the next obvious step is to scale up since every business wants to grow. How to use your funds to expand your business is a key question. Given that expanding is a big move you need to put some research in it otherwise things can backfire. This is where you can take a leaf or two from the books of those who have already done it and how it worked.

Managing cash flow:
How you manage your finance is very crucial to the success of your business. Plus, this is a basic requirement for future loan applications. Try to find out from your competition on how to best manage cash flow and learn from them to do this more effectively.

Allocation of money:
How to allocate your existing funds and where to put how much is a big part of business decisions. Those in the same business as you might have understood this well and being able to lay your hands on that strategy can benefit you immensely.

Brand building:
Brand building is very important. How your competition is using their money for communication and advertising is something that you need to learn from all the time. Especially from the ones who are getting it right.

Raising money:
A business needs capital all the time, whether it’s yours or theirs. Some people are more skilled at raising it than others. Keep an eye out for others in the same business as you and incorporate methods that they are employing to get funds and see if you can adapt those methods for your own business. When it comes to small business working capital loans, we at Lendingkart, are always ready to help.

Strong base:
As a small business while growth is important, being able to have a strong base is extremely critical too. If a business grows continually but does not spend some time is deepening its roots, then this can lead to cracks that can pose big issues if left unattended. How your competitors are using their financial resources to consolidate and deepen their roots can help you understand how to do the same with yours.

New Ideas:
No business can grow without new ideas and innovation. How your competitors are using their money to encourage and build on new ideas is something that you can learn a lot from. It is also a very effective use of your money.

Accounting:
Learn from your competitors on how to measure results and profits. A robust and dynamic accounting system can help you reach a good benchmark. Getting this right is very important. Clear financial records are a must and no financial decision can be fruitful without paying attention to numbers.

Prepare for lows:
Every business goes through lows and a part of managing your funds properly is directly linked to being able to survive the challenging times. Understanding how your competition is preparing for such scenarios is very helpful for you to be able to do the same. A competitor who may have successfully managed their financial situation can offer ready solutions but what is important to consider is that another one who might not have done that well will also have some lessons to impart. Don’t ignore those lessons.

Tax:
Another key area directly related to finance is tax liability and how to manage your funds effectively to make sure you do not accumulate a lot of it. Find out which of your competitors is getting this right and see if you can use some of their processes and practices in your own dealings.

Return on Investment:
How your competition measures return on investment can inform your own financial decision making into a more productive space. Learn from their strategies and assess their gains to see how you can maximize our own.

Learning from your competition can be a mix of do’s and dont’s. The idea is to keep your eyes open and recognize the opportunity to learn. Then feed that learning back into your own business for better results.

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