However, if you don\u2019t what can you do? Running a business is not\nas simple as you would like it to be. With the constant ups and down, you often\nfind yourself in a place where you may require immediate funds. Cash crunch\nmaybe due to any reason. That does not mean you stop running your business.\nBorrowing money is an option. Now when we say borrowing, we do not mean from a\nmoney lender like they would do in the old days.<\/p>\n\n\n\n
Here, we mean business loans.<\/p>\n\n\n\n
For a first timer, applying for a business loan is a daunting\ntask. For someone who has availed a loan for his business, knows the nitty-gritty\u2019s of the process. If you are about to\napply for a business loan there are a few things you have to include in your\napplication:<\/p>\n\n\n\n
- \n
- Company Documents<\/strong>: Let us start with the basics. You need to have all your\ncompany documents in place. Company PAN Card, Income Tax Returns, Audited\nBalance Sheet with Profit & Loss Account and bank statements are the basic\ncompany charter documents that you will need. If your business is a private\nlimited company, you also need to submit your Articles of Association as well as\nMemorandum of Association when you apply for a business loan. Financial\ninstitutions and NBFC\u2019s like Tata Capital ask for the basic company documents,\nduly signed by the managing director when you start the process of applying for\na business loan. You have to include all of them so that the lender knows that\nthe company has followed all its compliances and is up to date.<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2020\/01\/Company-Documents1.jpg\")
Documents Concept. Word on Folder Register of Card Index. Selective Focus.<\/figcaption><\/figure>\n\n\n\n - \n
- Covering letter<\/strong>: A Covering letter, generally addressed to the general manager\nof the financial institution should also be included when you are in the\nprocess of applying a loan for your business. This letter will give the\nfinancer an idea about the company and the business in general. You do not need\nto write the entire history but a general idea about the business will work in\nyour favour.<\/li>\n<\/ul>\n\n\n\n
- \n
- Business Plan<\/strong>: This is one of the most important things to include in your\nbusiness loan application. Firstly, no financial institution will give you\nmoney unless they know what the purpose is. Be it\nexpansion of business, working capital requirements, purchase of additional\nmachinery it is better to explain to the lender the purpose of the business\nloan. Secondly, a business plan also gives you a clear picture as to how you\ncan best utilise the business loan that you have applied for. This just makes\nit simpler for you as well.<\/li>\n<\/ul>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2020\/01\/business-plan3.jpg\")
<\/figure><\/div>\n\n\n- \n
- Personal Details<\/strong>: The personal details of the owners, partners, managing\ndirectors will also need to be furnished when you apply for a business loan.\nThe KYC details of the management are\njust as important as the KYC of the company. You will need to submit the same\nwhile you apply for the business loan<\/li>\n<\/ul>\n\n\n\n
- \n
- Business Credit report<\/strong>: Just like a personal Cibil Score, you will\nneed to furnish a business credit score\nwhile you apply for the loan. The credit score will give your lender enough\nconfidence to help you with a business loan as the score. A high score implies\nthat you have paid all your past loan instalments\non time and you have a good standing in the market with other financial\ninstitutions as well. <\/li>\n<\/ul>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2020\/01\/business-credit-report-4.jpg\")
<\/figure><\/div>\n\n\nFinancial institutions like Tata Capital\u2019s business loans can help you as a business owner with the right amount of funds so that you do not face a cash crunch while running your business. Including these five things in your business loan application can help you pave a simpler way of availing a business loan.<\/a><\/p>\n\n\n\n
- Business Credit report<\/strong>: Just like a personal Cibil Score, you will\nneed to furnish a business credit score\nwhile you apply for the loan. The credit score will give your lender enough\nconfidence to help you with a business loan as the score. A high score implies\nthat you have paid all your past loan instalments\non time and you have a good standing in the market with other financial\ninstitutions as well. <\/li>\n<\/ul>\n\n\n
- Personal Details<\/strong>: The personal details of the owners, partners, managing\ndirectors will also need to be furnished when you apply for a business loan.\nThe KYC details of the management are\njust as important as the KYC of the company. You will need to submit the same\nwhile you apply for the business loan<\/li>\n<\/ul>\n\n\n\n
- Business Plan<\/strong>: This is one of the most important things to include in your\nbusiness loan application. Firstly, no financial institution will give you\nmoney unless they know what the purpose is. Be it\nexpansion of business, working capital requirements, purchase of additional\nmachinery it is better to explain to the lender the purpose of the business\nloan. Secondly, a business plan also gives you a clear picture as to how you\ncan best utilise the business loan that you have applied for. This just makes\nit simpler for you as well.<\/li>\n<\/ul>\n\n\n
- Covering letter<\/strong>: A Covering letter, generally addressed to the general manager\nof the financial institution should also be included when you are in the\nprocess of applying a loan for your business. This letter will give the\nfinancer an idea about the company and the business in general. You do not need\nto write the entire history but a general idea about the business will work in\nyour favour.<\/li>\n<\/ul>\n\n\n\n