Business Loan Requirements
No matter what type of a business loan of you apply for, the following are the requirements that you need to fulfil to qualify for a loan:
- Credit Score: the lending company will run a credit report check to comprehend how you manage your personal and business funds. A poor credit history would make it difficult for you to get the application approved. If your business has an established credit history, you need to ensure that it is positive. If it is negative, then you need to work towards making it positive. Notably, in addition to the credit score, we have a new evaluation system, ZipScore, which holistically checks the borrowers’ creditworthiness.
- Credit Report: if you have missed any payments in the past or have made settlements, all of these will be shown in your credit report. It will only show your careless behaviour and incapability of managing funds.
- Business Vintage: a new business is a bit risky. Many loan lenders don’t offer loans to risky ventures, so they don’t generally offer loans to new businesses. To qualify for a business loan, your business needs to be in operations for at least two years. The two years of business vintage will help you provide the required documents, such as ITR, PNL statement, bank statement, etc. These documents will show that your business is doing fine and is capable of repaying the loan amount.
- Business Financials: many lenders require detailed information about business financials, including ITR, bank statement, etc. The stronger the business’ financial position is, the easier it will be to qualify for a business loan.
- Collateral: you don’t need to provide collateral for all business loans. You can avail unsecured business loans. We offer collateral-free business loan where you don’t need to provide security or collateral to avail a business loan.