Business Loan

Basic details

Business Loan:

Business loans starting at 12%, just for you to turn your dreams of entrepreneurship into a successful reality.

Business loans are the loans withdrawn by the borrower from any financial institution, in order to start his/her own company or for expanding their already existing firm into a larger and wider prospect. Business loans are an alternative for the capital needed for investments, which is very much essential for any business operation and establishment. Loans always come with interest rates, as in a form of security. Even business loans carry a certain amount of interest that the borrower needs to pay at regular intervals. On the whole, the entire business loan works in a way through which a borrower agrees to pay back the borrowed amount along with the interest at the agreed rate within the stipulated time.

Benefits of Business loan

Large capital made affordable:

Easy and affordable business loans with lower interest rates are offered by The Clicklends for short-term, intermediate-term and long-term purposes. Capital is the main drawback that most of the upcoming or even the well-established business professionals worry about, for, which this scheme of lending affordable business loans will curb all the capital related problems.

Flexibility in loans:

Flexibility in loans will allow the borrower to withdraw only the required amount and one can repay the funds as per their business cash flow at zero prepayment charges. These make the borrowers make a sigh of relief, for they will not be tormented with interests or repayment of loans while their business cashflow is less. One can pay interest only as EMIs and repay the principal at the end of the tenor. Interests are charged only on the withdrawn/ the principal amount, thereby reducing your EMIs and helping your cash flow maintain a balance.

Hassle-free unsecured loans:

These business loans are unsecured loans. We The Clicklends, never require a collateral from the borrowers for lending them money. These unsecured business loans are approved within 24 hours and they also come with an easy eligibility criterion, which makes it easy for anyone to opt for a business loan,This feature makes The Clicklends the fastest, the best and the most hassle-free loan lender, who will always lend you a hand in terms of urgent financial needs for your upcoming / growing business.

No collateral:

Collateral are the assets of the borrowers which will be used as a security for getting loans from any financial institutions, unlike the online mode. For these business loans, The Clicklends, require no collateral for lending loans and require no appraisal of the value of your assets. We also deal with minimum documentation. In the absence of collateral, funding becomes more easy, affordable and faster, thereby encouraging many to opt this option for starting or expanding their business.

Online Account Access:

Staying and connecting online brings home more advantages than disadvantages. Owning an online account to manage loans is one of the most convenient manner one can opt for .One can access their business loan statements anytime from anywhere on Earth. This method is a newly developed mode of granting loans and has succeeded with no blackmarks.

Multipurpose loans:

Business loans can be used for a wide variety of purposes dealing with establishing or expanding any legal business. Be it a short-term / long-term business, these loans help the owner(s) find their source of capital in the financial institutions.

Business Loan: Eligibility Criteria:

Business loans are a source of capital required for a wide variety of small, medium and large enterprises and professionals. Top-up facilities are also granted for all those existing business loan customers who may require some more credit at a later date. There are different aspects which will test your eligibility to opt different schemes of business loans and the following criteria are:

1. Business loans are first offered to:

  • Sole proprietorship firms
  • Private limited companies and closely held limited companies
  • Partnership firms
  • Self-employed individuals / professionals like CAs, Doctors, etc.
  • Retailers
  • Manufacturers
  • Traders

2. The business must have been in existence for a minimum period of 3 years.

3. The company’s turnover should be more than Rs 1 Crore.

4. The company’s profit after tax (PAT) for the last two years should be positive, for negative results will affect the firm’s credibility to repay the principal amount within the stipulated time period.

5. Minimum Age and Maximum Age of owner(s) should be 28 years and 68 years, respectively, during the time of loan maturity.

6. Good credit rating score in credit bureau is mandatory for nay business firm seeking business loan, for credibility and the credit-worthiness of a firm is all that speaks in terms of lending money.

Documents required for business loans:

Documentation for business loans are very simple and makes to work at ease. All one needs to do, is to put together their documents before applying so that the application process is processed faster. Different details are required, so that the lenders are aware about their borrowers and their firms.

Photo Identity Proof:

Any of the following document can be self-attested for submission, for photo identity proof is the most significant of all verifications. This process will help the lender identify their borrower from among a thousand persons.

  • Passport
  • Pan Card
  • Voter Identity Card
  • Driving License
  • Aadhaar Card

Address Proof:

Any of the following document can be self-attested for submission, for address proof marks its importance in the verification process.

  • Ration Card Passport
  • Bank Account Statement
  • Aadhaar Card
  • Driving License
  • Electricity Bill
  • Telephone Bill
  • Sale Deed/ Property Purchase Agreement (for owned properties)

Income Proof:

Relevant documents can be self-attested for submission, for, providing sufficient proofs to prove / inform one’s credibility is very important. This is one of the main aspects which will please the lender to lend money to the borrower.

  • Latest ITR
  • Latest Audited Financials
  • Last 6 Months’ Bank Statement

Business Proof:

Relevant documents can be self-attested for submission, for, providing sufficient proofs of one’s business credibility is more significant and another aspect based on which, the lender will approve loans for the borrowers.

  • Qualification Certificate/Certificate of Practice (COP)
  • Shop Act License/ MOA & AOA/ Sales Tax/ Vat registration/ Partnership Deed

Types of Bank Loans for Business

Business loans are usually Term- loans through which a borrower can borrow a heft amount and repay them along with interest amount over a specific tenure. Through these business loans, a borrower can easily avail low-cost term loans from lenders or banks.

Long and Short-Term Loans:

Regular term loans are usually short-term loans. The only difference between both long and short-term loans lies in the payment tenure. In terms of short-term loans, the borrower is expected to repay the debt over a shorter period of time, unlike long-term loans which offer a longer period of time for repayment. Usually short-term loans consist of smaller amounts, so that the borrower can repay them in a shorter period of time, whereas larger amounts are dealt with long-term loans.

Business Line of Credit:

This type deals with the revolving credit which is a form of credit where a commitment fee is paid by the borrower to the lender, in order to use the funds whenever needed. These are usually opted for operational purposes and the withdrawn amount can fluctuate each month depending on the borrower’s cash flow needs. Online lenders and traditional lenders, both, offer such revolving credits in order to curb the financial crisis / aid businesses with their financial assistance.

Equipment Financing:

Equipment constitute a major portion of any industry, be it manufacturing or service. Investors would need money / capital to invest on equipment based on which their daily work is depended. An equipment loan will ensure to finance the cost of buying the required equipment. The equipment will be used as collateral for the loan opted. Through this way, the owner(s) need not worry about lack of funds to invest in their equipment, without which no function would takes place in the firm.

Invoice Financing:

Invoice financing is a short-term borrowing, extended either by the banks or by a lender to its customer, based on unpaid invoices of the companies. One of the main advantages of using this method of financing is that the company can withdraw fast cash and enjoy upto 85% of the outstanding invoices. A factor fee will be charged on a weekly basis if the invoice remains unpaid. Overall, this type is one of the prominent ways in which one can avail short-term borrowings from the financial institutions.

Merchant Cash Advances:

Merchant Cash Advances, as the name suggests, deals with the daily credit of the business and the debit of card sales which can be used to repay the amount withdrawn as loan / as fast cash. Whenever the borrowers wish to avail fast cash and use a part of their daily credit sales to repay them, Merchant Cash Advances prove to be efficient in providing the necessary funds, especially when the company’s credit does not look good. However, this type of finance will prove to be really expensive unlike other methods.

Business Credit Cards:

These business credit cards are not exactly loans, but does lend money to the borrowers to finance their business operations. One’s personal finances and business-related finances will remain separate when a credit card is used and that too, when the card is specially designed for business needs. Business credit can also be built using these cards and one can earn rewards and cashbacks using such cards.

Applying for a business loan involves three simple steps:

Step-1: Filling of the quick form:

A Quick form is the most significant prospect as it is required to decide who is eligible for a loan and who is not, depending upon one’s credibility and stability and also for one’s own personal information, proof and verification of information provided. In the first step, the customer needs to fill in the quick form which includes filling the following details:

  • Full Name (as per PAN Card)
  • Date of Birth
  • Email
  • Address
  • Contact Number
  • Monthly Income
  • Expected Loan
  • Amount Work
  • Experience
  • Company Name
  • Pan Number
  • Pincode
Step-2: Process of Verification and Documentation:

After completing Step-1, you shall receive a call from our customer care regarding your document verification and collection of the mentioned documents (if not yet supplied). After you finish giving your personal information, our customer care will reach you through a call and will request you to present certain documents such as your Pan card, your Salary receipt and so on in order to verify the details supplied in the quick form. The next thing which will happen is the process of verification, where the prescribed details will be cross-checked for one last time before initiating the loan process.

Step-3: Processing of Loan:

Once the quick form is filled with the necessary details and once the verification process gets over, you’ll reach the last step to get your loan amount credited to your bank account. Once the verification is done, the loan process will start and within 3 days the loan will be proceed to the respective borrower and his bank account will be credited with the loan amount. Just 3 days, and the entire loan amount will become yours for use.