Business loans can best be applied before you actually need them. When you are applying for a start-up business loan, there are certain criteria to be satisfied to make yourself eligible for the same. Depending on the bank or private finance offering business loans, it can be obtained with or without security. Besides if the person applying for a start-up business loan is ready to take the risk, then he/she may apply for the business loan without security. Business loans can be obtained for both small as well as large businesses. It is essential to get approval for the loan to get sanctioned at the earliest. For this, there is certain business loan eligibility for you to satisfy to apply for a business loan. There are certain documents and information that need to be assembled before you apply for a business loan. The following are a few that should be ready before applying for a loan
1. Credit score
Business credit score plays a vital role in applying for a business loan. This is considered the first and foremost business loan requirement. According to the lender, the higher the credit score, the higher will be the chances of availing a business loan. A credit score is something that reveals complete information about your business. However, the same is not the case with RG enterprises. RG enterprises provide start-up business loans despite having a poor credit score.
2. Revenue over a year
Understanding the business sales as well as the cash flow is one of the primary requirements for any lender to provide a business loan. Your bank statement for the past two years needs to be accurate. This financial statement helps the lenders confirm the cash flow of your business. It is considered as the major qualification to apply for a business loan.
3. Full – fledged business plan
Before providing the business loan, it is right for the lenders to know how you will utilize the money in developing the business. The experience of the respective persons involved in the business can also be included as a part of the business plan.
4. Collateral and security
The risk for a loan is always high and it is everyone’s wish to reduce the risk as much as possible. The main qualification for applying for a business loan is that the owner of the business himself should provide a personal guarantee in addition to having collateral.
In addition, there are also certain documents that need to be arranged such as
- Driving license
- Business license
- Tax returns
- Insurance plans
- Financial statement
- Ownership record
- Payroll document
Apart from these, there are also certain other business loan eligibility which is not limited to the following
- The age of the person applying for a business loan should be between 21 years to 65 years
- The business should have yielded a profit in the last two years
- The business accounts should be monitored by a verified charted accountant
- The turnover of the business should be appreciable over the past two years
- Business loan interest rate is also very less
If you are looking for flexible processing of loans then getting a loan from RG enterprises would be the right choice as RG enterprises are one of a kind when it comes to disbursement of the loan. Another advantage of applying for a start-up business loan with RG enterprises is that the loan amount is provided at a competitive rate and the repayment time is also high which is considered the major perk.