Business Loan Eligibility - Few Important Points

Business loans are the most preferred funding option that can capitalize a business well. One can use the approved funds to meet the operational expenses like remunerations, inventory, interest payments, etc, for asset creation like purchasing land, equipment, and machinery, for cash flow management, for marketing activities or any other operational processes. 

A businessman can avail a secured business loan or unsecured business loans as per his choice. The business loan amount mainly depends on the state of business, the age of the business entity, the industry it is operating in, valuation, profits. 

Eligibility criteria for loan approval may vary lender to lender. It is mandatory to meet the eligibility criteria to get a loan approved. Some of the lenders like Finway facilitate people to check the business loan eligibility within minutes.

Eligibility Criteria 

Business loans can help newcomers to start their new ventures and existing entrepreneurs as well to expand their businesses on the basis of following factors: 

●     Age of Applicant 

Most lenders approve loans to an applicant of 21-65 years. The age determines the amount of your loan to be approved. 

●     Business turnover 

You should check your eligibility before applying for a loan amount. 

●     Number of years in operation 

The ideal period considered for a stable business is three or more years. However, some lenders approve loans for a business of 12 months also. 

●     Credit Score 

When it comes to applying for a loan, a high credit rating is paramount to get instant approval. However, low credit score loans are also available with some lenders. Finway is one of them. 

You can apply for a loan of Rs 50,000 - Rs 30 Lakhs with Finway that will be approved on the basis of the above-mentioned factors.

Factors that affect Business Loan Eligibility 

●     Business Instability

●     Repeated loan application rejection

●     Late credit card payment and outstanding bill payment

●     EMI defaults affect Credit Rating adversely.

How to improve credit

●     A 700+ credit score is considered as a benchmark score in India. If you possess less credit score, it can be improved by making timely payments of your outstanding. 

●     Select a lender who has basic loan eligibility only and minimal documentation requirement. So that the loan application can be approved more easily.

Finway Loans 

Finances are one of the very subtle segments of a business. With a view to the requirements of funds, Finway eases the procedure to check the business loan eligibility and make approvals of loans fast to empower people financially. It has basic loan eligibility and minimal documentation requirements. 

Financial management can make or break a business. Strategize funds and outline long term goals to achieve sustained growth. Utilize your money carefully.