Monday, 2 December 2019

5 important documents to take a business loan easily



 Applying For A Business Loan

Want to increase your business, but you do not have enough capital or savings to do so. In such circumstances, you need a business loan. And just as it takes time to get all the good things, in the same way business loans are not easily available.
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·         Getting a commercial loan is not an easy thing. The rules of the bank are very strict to give loans especially for small businesses. Although it is very difficult to get a business loan, the better your preparation will be.
·         Due to the right documents, your chances of getting a loan increases by 50%. This is because your chances of getting a loan depends on your ability to repay the loan. All banks have their own different requirements, criteria and eligibility rules to determine whether you are eligible or not.
·         It is true that the process of taking a loan is very long but it can be very easy for you if you have the right financial documents of your business. Here is the document that prepares you to take a business loan early:



Transaction Record

All the debtors / bank checks your financial status before giving you a business loan. They expect you to submit all your transaction records which are audited. This is the reason why it is suggested to keep all the sales and payment information in the account.
Loan Against Property In Delhi Ncr, many traders forget to maintain an account because they have other tasks. A good accounting software helps any trader to see any information related to the business such as cell, purchase, transaction instantly without any hassle.
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Cash flow statemnet

1.      The bank looks at how much money you have to pay and how much money to take because it is mandatory.
2.      This lets the debtor or bank know the financial condition of your business and they guess from it that you will be able to repay the loan or not.
3.      There is less risk of fraud in your business due to having a good cash flow report. This is why the financial state of your business should be transparent.




Profit And Loss Statement

·         Statement of profit (profit) and loss (loss) shows how much profit you have made in the given time.
·         Your bank would like to know how much profit you have made and how much your income is.
·         If you continuously earn profits, then you are likely to be financially ready and can repay the loan. Therefore, you have to give information about all your past losses and profits.


Balance sheet

With the help of your balance sheet, people outside your business will easily find out what your financial situation is.
Also, the bank will know where the loan money will be spent and by when they will get the loan back. This shows how much risk there is in getting the loan back.

1.      While applying the loan, the bank will review your balance sheet so that they know how you handle your financial problems in a short time.
2.      Not only for the bank, this statement is also beneficial for you. With this you will get to know your financial situation and you will be able to take the right decision.
3.      With this, you will also be able to know how long you will be able to sell your inventory. With this, you will also know the choice of your customers.


GST

Finally, the bank would like to see your last year's business tax return. With this, they will verify whether the information you have given by other financial statements meets it or not.

The bank will always require these Loan Against Card Receivables so that they can know whether you are able to repay the loan or not. With these 5 business-financial documents (documents), the debtor or bank will get to know the financial status of your business and they will also be able to see whether you are reliable to give a loan or not.
If you do not keep all these documents, now is the time to maintain them so that you do not have any problem in applying for a loan in future.


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