Every business required money to grow and When a business needs money, there are several ways to get it. Here we are talking about taking business loan from bank.
If your are entrepreneur then you don’t need to take business loan but it’s good to take personal loan. Advantage of personal loan is the low interest rate as compared to the business loan. and if interest rate on is low then it allows to pay less money and you can earn money more.
Business Loan vs Investors
Taking a business loan is better than looking for investors. Because investor will be highly involved in the operations of the business and might seek a share in the business. When you take a business loan you get a any amount to spend according to your requirements and you don’t have to answer anyone.
Business Loan Types
This loan could be secured or unsecured in nature. The amount available depends on the business’s credit history. The tenure is fixed, ranging between 1 and 5 years and for unsecured up to 15 – 20 years for secured business loans
Working Capital Loan
Working Capital Loan generates a balance in cash flow necessary to run a business. and this is for small business.
Document Required For Business Loan
Identity proof : PAN Card, Driving License, Passport, Voter ID Card
Address Proof : Passport,Driving License, Aadhaar Card, Bank Account Passbook
Ownership proof : Agreement, Electricity Bill, Municipal tax bill
Business continuity proof : Tax registrations, VAT, Service tax, GST registrations
Firm Constitution : MOA, GST Certificate
Financial : Last two years financials
Banking : Last 6 months business account bank statement