• Compare: Market research and comparison of different lending options will make things easier for you. Since, most of the information is available on internet so, it will be just a click away and you will get to know the terms offered by multiple lenders.
• Purpose of the Loan: Your purpose of loan should be absolutely identified. A lender would think of giving you loan once your vision of usage of funds is clear.
• Determine the Collateral Capacity: What support of collateral is available with the borrower is also the concern of a lender. This collateral can be any tangible asset like property, equipment, investment policy and so on.
• Amount Required: Any uncertainty in the amount of loan may give an impression to a lender that one’s business understanding is not up to the mark.
• Guarantor: As a start-up business owner you have to have a guarantor. Since there is no history of running a business so, banks can be rigid with lending without a guarantor. Moreover, a written agreement should also be there with the guarantor.
• Presentation of a Business Plan: Not only making a business plan is important but its presentation is equally essential. Therefore, you should try to make the best possible presentation in your initial loan submission.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

Funds are primary in nature when it comes to start or expand any business. Coupled with accountability of capital usage, planning and its implementation can be secondary in terms of the success and failure of any business.

Nonetheless, to meet the business requirements of working capital, buying machinery or salary etc. a loan can be a useful source of financial assistance. Now days, obtaining loan have several advantages. Small business loans can be used for different purposes and sector wherever a business needs them. Flexibility in terms of repayment of a loan, interest, security, and expert advice also works as an advantage.

Requisites improve the chances of obtaining business loans are:

Business Plan: A good business plan should not only be well written or formatted but it should be presented appropriately.

Credit Rating: A good credit rating is a convincing way to get an approval of business loans. Lenders always consider borrowers’ past repayment record and current credit rating.

Detailed Record: Transparency while presenting documentation related to ITR, P&L A/C, and balance sheet certainly helps applicants to get hassle-free loans.

Business loan is an additional income with a repayment clause but it is always recommended to use it wisely for the growth of a business in long-run.

SME farm equipment manufacturers either sell their product as their own brand or just hand them over to large established players. Chandigarh, Punjab, Haryana and Himachal Pradesh are the main places where these manufacturers are found. The manufacturers of these regions cater to fulfill the demands of domestic market and also engage in exporting the equipments to countries like Iran, Iraq, Nepal, Sri Lanka, and Southern Africa.

The farm equipment manufacturers sector received a boost due to subsidies from Central and State government and easy financing from financial institutions. Due to the impetus received, this industry now is seeing 20-25 per cent growth every year.

Noticing the rapid growth of this sector, farm mechanization is further vigorously promoted by both Central and State governments. The SMEs are also made eligible for bank financing. Government is giving subsidies for purchase of machines like add drills, caster threshers, multi-crop threshers, potato diggers, rotavator bed planters, tractor-mounted sprayers, sugarcane cutters and planters.

Obtaining money from outside resource has some advantages and disadvantages. Therefore, it may take long time for market research but your right decision will give you a long-term benefit. Certain points need to be taken care while searching for lender.

Transparency: It is the most common yet the most crucial aspect of lending. Obviously, a borrower or a business owner expects everything to be black and white in the process of finance lending. Since, some lenders do not advertise or disclose the real rate that’s why it becomes difficult for customers to negotiate a fair price.

Online Search: Although, there are plenty of options available to search on the internet however involves some confusion as well. It is advised to be specific with some of your basic financial requirements. It would not only help you to narrow down your choices but reduce any risk of your plan.

Referrals from Friends: You can always take references of lenders from your friends and relatives who have recently got loans. The advantage of getting referrals from them is that you can ask about the nitty-gritty of the process. The trust factor is higher than an agent. They can also tell you if there was any hidden or unexpected fee while dealing with the lender.

Hence, small business loans enable entrepreneurs to make a desired start of their businesses and at the same time take an existing business to the next level.

The successive policy rate hikes made interest rates uncompetitive internationally and it has hit capital formation and investment. This was revealed in a statement published by ‘Federation of Indian Exporters Organization’ (FIEO). The body made a clear suggestion in its press release that interest rate for micro, small and medium enterprises (MSMEs) should be capped at 7 percent and for other businesses it should be capped at 9 percent.

For Small Business export sectors, FIEO also asked for interest subvention until March 2013. Rafeeque Ahmed, President FIEO, discussed the points during a meeting with Finance Ministry Officials in New Delhi. Ahmed also emphasized on small business tax breaks for both direct and indirect taxation.

However, depending upon the need and the sum required, it would not be always possible for you to quickly arrange a loan. However, with biz2credit around all your financial needs can be met. We at biz2credit.in help women obtain easy loan for their small businesses. In fact, getting loan is so easy that you can hardly experience any sort of difficulty to get the desired amount.

Women can avail secured loans, unsecured loans, instant loans or business women loans. So, whatever may be your requirement, we, at biz2credit.in will always assist you to avail a good deal. Even if you have a bad credit history we will help you to get bad credit women loans without any sort of trouble.

We are committed to provide the best quality service which involves providing loans at lowest possible rate of interest and that too right away, when you require it the most. So, if you wish to become empowered and self-dependent by starting up your own business then come to us. We will help you get small business women loan within a least period of time and that too without any hassle.

We deal in SMEs loans and offer the widest range of financing solution designed as per your needs. We provide loans at a concessional/lower rate of interest and keep in mind the development of your businesses.

We understand that all businesses need a healthy cash flow. The first question which comes to your mind before applying for a loan is “how much money do we need”? Here, we can help you to answer all your questions and doubts related to loan.

Loans can be obtained through various types or schemes like secured loan and unsecured loan. Secured loans are available at a certain amount of security or collateral but with a lower rate of interest. Whereas unsecured loans do not need any security or collateral. However, the rate of interest is higher.

The following are the three categories of loans:

Short-term loans: This is meant to meet the short-term requirements of a business with a short repayment time.

Medium-term loans: This is meant to meet the genuine business requirement and the repayment time for such loan is between 5 to 7 years.

Long-term loans: This is meant to meet the specific or long-term requirements. Which can include: huge expansion of a business, buy machinery or property for business purpose etc…the tenure for repayment is long.

What are you going to do with the money?

This is the most important thing which comes to every lender’s mind. The designated use in details of the money is advised. Though, the procedure to get a loan is lengthy however, there are things you can do to expedite the process. Requesting, to prepare all documents before apply for a loan.

Business Profile: It is the basic detail which includes the ownership, kind of business, number of employees, annual sales, and duration of the business.

Business Plan: It requires in both situations whether there is a start of a new business or extent an existing one. However, it is more important for a new business because no business profile will be there for lenders to go through.
Balance sheet and profit and loss statement will be required for last three years. .

Lenders may require some additional documents. For e.g.:

• Proof of tax payer ID Number;
• Legal description of real property;
• Lease;
• Equipment Inventories;
• Proof of insurance etc.

Providing additional detail is fine but only as when you have asked for.

Online loans are also available which can help you in many ways like approval can be on a faster pace, choice of lenders and rate of interest, and lower processing fee.

We understand, the returns or revenue in business is not stable sometime there is a huge profit and sometimes losses. Thus, funds are required to meet the work expenses of the company. In India, government also encourages SMEs to commence or extent their business.

Hence, SME loans help in starting and expanding the business without much difficulties or hassles. It could be challenging for an upcoming entrepreneur but of course not impossible.

There was anticipation and an air of fear of this happening since the AP MFI crisis broke out in October 15, 2010. Now the announcement has made things final. This has shaken the very foundation of India’s micro-finance sector and is threatening to wipe it out.

MFI remained highly profitable and attracted hordes of Indian and foreign investors when it became public in July-August last year. It is deep in losses of Rs 219 crore for April-June 2011 quarter as against Rs 70 crore losses in January-March of 2011.

The net worth of Mahajan’s BSFL has depreciated from Rs 230 crore in September 2010 to Rs 128 crore as of June 30. It is believed to be completely eroded due to accumulation of bad loans of Rs 450 from its AP portfolio. This is just 50 % of the total loan portfolio that amounts to Rs 1000 crore.

Most MFIs are choked of funds and are struggling to stay afloat. The others who are going through the experience are Spandana Sphoorthy, Share Microfinance and Asmitha Microfin. The smaller ones have to bear the brunt of the crisis while the bigger ones still have the option of restructuring their debt with banks. According to estimates, AP crisis has driven 15-20 small AP-based MFIs, out of business.

Price of industrial plot at Sigaddi is set at Rs 3500 per square meter by Sidcul. This rate is very high according to Sidcul – the nodal agency for industrial development. The Sidcul board had called for floating ‘Expressions of Interests’ (EOIs), in order, to ascertain the real value of industrial plots at Sigaddi growth centre in Kotdwar area of Pauri district.

Sidcul is yet to float such EOIs. The centre has not yet started the process of floating EOIs. The reason being it is not clear how the floating can help evaluate land prices. Development of the growth centre has fallen within the scrutiny of CAG. It has stated that priority is given to making more money by way of allotment at the growth centre.

For encouraging industrialization of backward areas, this scheme to set up growth centre has been introduced. The growth centre got sanctioned in Dec 2003. Sidcul board acquired 100 acres of land for the purpose and 60.87 acres is acquired for allotment to entrepreneurs.

Anup Chanda, additional chief secretary (MSME), present at the conference emphasized on the need of timely loan disbursement to ‘heterogeneous sector’. Chief General Manager of SBI, Suriender Kumar has stated that SBI’s reaching out to MSME sector in the state is Rs 44,000 crore for the year. It is found to be the highest among all other banks.

Lending to MSMEs by banks at 13-14 per cent rate is found not to be helpful for sustainable growth of the sector. But it is being argued that lending rate needs to be brought down to 7 percent for achieving sustainable growth. The government has to focus on attracting large industrial investments and address issues of labour, technology transfer, and market linkages. Bengal currently has 27 lakh SMEs.