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.

Firstly, it is going to be 100 percent underwritten that is a promise of 100 percent success. Then there is going to be support for three years in secondary market through the market making activity. SMEs with paid up capital of Rs 10 crore can get listed on SME exchange in-comparison to the Rs 10 crore or more for the main board. It is good to have a simplified listing norm. The issuer just needs to take approval from the exchanger and now Sebi’s approval is no longer required. However, Sebi will be kept informed by sending a copy of the offer document.

Financial results need to be submitted on a half-yearly basis and there is no requirement of publishing the results as is the case with the main board. The results can be made available on SME websites and entrepreneurs can send over their profit and loss account and balance-sheets to share holders. The other big factor is SMEs with paid-up capital between Rs 10 crore and Rs 25 crore have the option to list on either the main board or SME Exchange. Enterprises need to keep their documents ready regarding annual reports, past performance, risk factors for getting listed on the SME exchange.

It is very important for companies to get listed on the SME exchange. Listing makes it possible to find better valuation to a company. Debt and equity ratios will start improving and balance sheets will look better. Transparency and corporate governance will start to improve. Listed SMEs with gain more visibility among investors and will have easier access to alternate funding options. Fundraising through ADRs, GDRs and follow –on public offerings become much easier.

The CFCs will enable MSMEs get work outsourced; assist them in acquiring new technology and for carrying out research and development work. CFC at Jalandhar is sanctioned by department of industrial policy and promotion (DIPP) and that at Ludhiana is under the ‘Assistance to States for Development of Export Infrastructure & Allied Activities’ (ASIDE). Both the CFCs are under ministry of commerce.

The Jalandhar based center requires a project cost of Rs 83 crore. The centre will be established with 75 percent financial assistance from union government, 10 percent assistance from the state government and remaining 15 percent from cluster members. A company named ‘Indian Tools Technology Centre’ (ITTC) has been created by members for execution of the project.

Government of Punjab has decided to lease out eight acres of land in Jalandhar for the proposed centre. A lease agreement with the state government is expected to be finalized soon. Completion of the centre will require 18 to 24 months. State of the art machinery and latest technology are being imported from Taiwan. This includes both Cold Forging Technology and Blue Moulding Technology. This is going to be extremely beneficial for the hand tool industry.

India’s total hand tool industry exports amounting to Rs 1,000 crore are contributed together by Jalandhar and Ludhiana. Punjab’s hand tool industry consists of 250 units and employs 60,000 people. The major export markets are United States and European Union.

1. Penetrate the market: This strategy is the least-risky method to boost your business and it involves market penetration. You need to penetrate the market and sell more products to the present customers. This particular strategy is the one that is usually used by the large consumer goods companies. Find out some new ways in which you can reach out to the customers as this will give you some innovative ways to communicate with them.
2. Develop the market: The next thing that you need to do is to develop the market for your products. You can start off with selling your products to the customers of another state and check the reaction of the consumers. Eventually you can assess the products that you’re selling.
3. Develop and enhance your product: While you develop the market, you must also concentrate on enhancing your product too so that you can prove to be one of the best dealers in the market. If you’re interested in boosting the number of customers that sign up with your business organization, you have to make sure that you’re offering the best product that is possible for you.
4. Find partners: Often times it is seen that the business growth strategy is too big for a small and single business owner. Sometimes, it can be beneficial for you if you look for a business partner who can contribute expertise and capital into the business and thereby help it grow. You must always look for a partner who can enhance your business prospects than demean them.

Therefore, if you’re a business owner who is trying to boost his business prospects, you must try out the points mentioned above. They’re just a few ideas that can get you started but most probably they can lead you through the right way to boost your business returns.