Applying for a business loan?
Looking to grow your business but do not have the savings to get up and running. This is where business loans come in. But like most good things, business loans don’t come easily.
Getting a small-business loan isn’t a piece of cake! Especially for small businesses, the lending standards of banks are really tight. Well, although getting approved for business loans is difficult, the more prepared you are, the better.
Having the right business documents in hand increases your chances of getting the loan by 50%!
This is because your loan eligibility is calculated based on your ability to pay it back. Each bank has specific requirements, criteria and eligibility factors to decide if you’re eligible enough.
However, the loan process becomes seamless if your financials, accounting and tax records are up-to-date, accurate and remain organized. i.e Getting a business loan from a bank becomes easier when you have proper financial documents of your business.
Here’s what documents prepare you to get a business loan sooner:
However, a lot of business owners ignore maintaining books as they get too busy with other tasks. Good accounting software will help the business owner to access any information about business sales/payments/customers with accuracy without manual effort.
Make sure you have gathered Cash flow statement before applying for a loan. Again, good accounting software like Vyapar App helps you generate cashflow reports without doing any manual background work.
Need to trace your profits and losses? Try Vyapar App to maintain your business accounts, get to know profits for the day/month/year effortlessly.
When applying for a loan, the bank will review your balance sheet to see how easily you can manage your financial burden in the short-term.
Banks will always want these financial documents to judge whether you have the ability to repay the loan or not. Together, these 5 business-financial documents give lenders a perfect picture of your business’s financial health and see if you’re trustworthy to receive the loan.
If you have not been keeping these records right, it is time to start since they could be of help in the future when applying for a loan.
Hence it is very important to use accounting software for all your bookkeeping needs from day 1 of your business.
Stay updated about the Latest Business Tips on Vyaparapp.in.
Download the BEST Inventory Management Software