Being a business owner, one has to spend lots of time, energy, and money in the hope to make your business stand out in the market. You devote countless days and nights to make your start-up run smoothly, and at the end of the day, you will find that you are thinking about business loans and how they can help you to develop your business further. The money from business loans can be used for various factors restructuring your company, to escape from a financial crisis, or for expanding the business further.
Things That Lender Will Check While Approving Business Loans
Getting a business loan is not an easy job for medium or small enterprises; even if you apply for a business loan and face rejection, it can become equally demotivating and exhausting. It is why you must what are criteria that the lender will check before approving a business loan –
The credit history of a company is something that every lender will look into though it’s not the only factor that the lender will consider while proving your loan application. If your business has a low credit score, then the chances of approval of business loans are automatically reduced to a great extent.
Cash Flow Statements
Before granting you a loan, the banks and other NBFC judge your ability to repay the loan. Thus it means that you need to provide a cash flow or profit and loss statement as proof of your financial situation.
Plan Of The Business
While starting a business, you need to have a clear idea about the goals and ambition you want to achieve. After understanding your goals, you need to create a concrete business plan that you are achieving and provide a clear idea to the lender why you need to borrow money.
Process To Verify The Status Of Your Business Loan Application
Nowadays, every bank has its official Websites, and many of them even have a personalized mobile application in Playstore, which can easily be operated with smartphones anytime, anywhere. So, if you want to track the status of the loan application, you have to provide a few basic information like your name, PAN Number, registered email or mobile number, loan application identity number, etc.
Tracking through Net Banking
If you still haven’t registered for net banking, then it is highly recommended to register immediately. Each bank recently provides net banking facilities through which you can access the account or carry out transactions via the internet. Net banking provides all the basic information related to credit cards, accounts, or loans. Thus by providing the basic information of loans, you can easily track the current status of your business loan application.
Tracking Through Mobile Application
In this era where most work is done through the simple application of your smartphone, the banks are also adopting this trend to provide better service to their consumers. After downloading the app, you need to provide all the required details and OTP to track the status of the business loan application through your smartphone.
Tracking Via Offline Means
If you are among those people who are not accustomed to the latest mobile application or net banking, then you can also track your application Offline or can send emails to the bank for updates.
Thus, it has become quite easy nowadays to know the updates about your loan applications.