Running a business is like walking a tightrope between growth and profits. A growing organization needs funding at various stages. Whether it is for expanding the business to new markets or purchasing new equipment, a business loan can provide the fuel required for launching the business to the next level.
The myriad avenues of funding often pose the problem of plenty. It could get confusing for a business owner to narrow down loan options. Here are some tips that can help you choose a lender that offers the best fit for your business.
1. A Thorough Credit Appraisal
These are dynamic times, and decisions need to be made using comprehensive, latest and relevant information. Most lenders only look for closing the deal and skip paying attention to all essential aspects of credit appraisal.
Therefore, to establish reliability and soundness of the lender, opt for a lender who pays heed to your business transactions and not only assets and balance sheets. If your bank statements are healthy and there is positive cash flow, you are likely to avail a larger loan amount.
2. Compare Before You Choose
Opting for the first lender that comes your way may not turn out to be a smart decision.
Get out in the market, and find a way to access to multiple lenders, and conduct a thorough comparison. Compare their terms & conditions, interest rates, duration of the loan, and other such factors.
Once you have assessed all the factors, zero down on top 3 lenders that offer favorable terms. Negotiate the cost and other terms with them and then choose the best deal that works for you.
3. Shop for Speed and Convenience
When you think everything is going fine, unwarranted delays in the loan disbursal can disrupt your best-laid plans.
Therefore, it is critical to ensure that the lender is quick in their dealings. Ask the lender about their turnaround times at every stage of the loan approval process. Also, pay attention to their commitment to customer service. How? Check out the ways through which you can get in touch with the lender quickly in case of an emergency. Also, opt for a lender who works digitally for faster transactions.
Also Read: SMEs Must Choose Right Mix Of Loans To Help Grow Business: Alok Mittal
4. Get a Handle on Additional Charges
Hidden costs in loans often sneak into your business outlays gnawing away big chunks of cash. Don’t be caught off-guard when these additional charges show up in your bills.
Have a thorough understanding of all the charges, such as pre-payment cost, document cost, and all the other fees that you would have to pay and ensure that you account for them. Steer clear of lenders who are not transparent about these additional charges from the go.
5. Look for the Transparent Process
With all other things being same, go for a lending organization that ensures transparency at every stage, from the loan application to servicing. Look for client testimonials or read online reviews if possible. Keep these factors in mind before going ahead.
Pay attention to questions like- Does the lender works digitally? Do they make digital transactions? What does their digital footprint say about them?
Apply For Online Business Loans In India
Availing a business loan can sometimes be difficult but With these smart tips, you are set to choose the right lender that can offer the ideal business loan gearing your business for new heights.
If you are planning to get a business loan than we at indifi can help you get loans designed for your Business Needs. We have complete transparent process with no hidden cost. We have tailored loans for Travel, Hotel, e-Commerce, Restaurant, Trading, Retail, and Used Car Dealership businesses.