BEYOND THE BANK: ALTERNATIVE PROJECT LOAN IN BANGALORE
Many
businesses could benefit from non-bank financing. You have a lot of other
option available to take Project Loan in Bangalore which include:
FACTORING: Businesses that need funds faster than their customers
are paying them can sell invoices for work already done to a factoring company.
Factors pay up front in exchange for a small fee; they pay you 90 to 99 percent
of the invoice amount, collect the full invoice amount directly from your
customer, then pocket the difference as their fee. Although upfront costs are
low, back-end costs can be substantial: Companies typically require businesses
to factor a minimum number of invoices every month, and to pay hefty fees if
they don’t. This is risky but faster way to get project loan in Bangalore. To
understand this better, you can ask Riddhi Siddhi Multi Services executive any
time.
PRIVATE EQUITY: Businesses in high-growth sectors may be able to
secure financing from angel investors or venture capitalists; business owners
can negotiate deals with private equity firms that include debt, equity or a
combination of the two.
PEER-TO-PEER LENDING: Peer-to-peer lending matches business owners
seeking a loan with individuals who are willing to lend them money in exchange
for interest. Kiva Zip, Prosper and Lending Club are examples of peer-to-peer
lending platforms.
ONLINE LENDERS: Internet lenders like Kabbage, PayPal and OnDeck
offer term loans and lines of credit to business owners who apply online.
Although they tend to have high interest rates and short repayment periods,
their advantages include fast decisions, quick disbursement and flexible
lending criteria.
CROWDFUNDING: Businesses can raise needed capital from multiple
individuals using Crowdfunding sites like Kickstarter and Indiegogo. In
exchange for a reward, like early access to a new product, contributors can
donate a little money or a lot, pooling their contributions to fund businesses.
Crowdfunding can be especially valuable to startups that aren’t eligible for
traditional financing. New businesses can use crowdfunding to generate seed
money and demonstrate proof of concept, the latter of which can subsequently
help them secure a Project Loan in Bangalore.
Although businesses courting alternative lenders typically face less
stringent requirements, Riddhi Siddhi Multi Services advice people seeking a project
loan in Bangalore to get the following items prepared:
PLANS AND PROJECTION
Obviously, having a business plan is important. You need to be able to
explain why you need the money. If you’re looking to buy equipment, you need to
demonstrate how that equipment will help you and what kind of money it will
help you make.
HISTORY
Once you’re two years in business, then it’s a good time to go to banks.
Banks typically require borrowers to have at least a two-year track record to
demonstrate that they have staying power, and two years of documentation— tax
returns, profit and loss statements, etc.—to prove it. That helps an
underwriter look at how your business is performing over time to see whether
you have the stamina and sustainability to run a small business.
GOOD CREDIT
Your credit score has to be at least 680. Banks review business and
personal credit, both of which should be free of liabilities, liens and
judgments. “Before you apply for a loan, you have to figure out how your
personal credit and your personal financial statements look.”
CASH FLOW
Investors always look at cash flow—your revenue minus your operating
expenses—and make sure there’s remaining income to pay back the bank debt: Can
you afford to pay the loan back?
COLLATERAL
When
evaluating a loan candidate, the bank wants to know: Can the business owner
afford to pay back the bank? If he or she can’t, how is the bank going to get
its money back? The bank may look at your property, retail inventory, business
equipment, accounts receivable or other assets as collateral to determine this.
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