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Modern business funding options you should consider

Access to proper and adequate funding plans is necessary for all businesses, small or large. Studies have proven that improper funding has caused the downfall of numerous business firms in the first year of operation itself. Since every business is in desperate need of an adequate funding option, going for a capital loan can be a wise choice. During the initial stages of initiating a business, every owner wonders about the best way to finance their business. While most of them fail to determine a solution, others go for a wise choice by opting for professional loans. The funds needed by a firm depend upon the nature and type of the business. To ease the tension of finding the perfect funding plan, we have provided a list of modern business funding options available. This will help you raise adequate amounts of capital for your business, facilitating proper business financing. [B-01] Bootstrapping Your Business The perfect way of funding your business is by bootstrapping your business on your own. Also known as self-funding, this method is regarded as the best way of business financing. If you are starting your own business as a first-time entrepreneur, what is better than being self-sufficient. As a first-time entrepreneur, it is difficult to organize funds from outside as you will be asked for stability and your plans adhering to success. So, you can feel free to invest in your savings. Here, you can even ask your loved ones to contribute. Not only will you receive the benefit of a flexible interest rate from your loved ones, but you will also incur fewer costs in raising funds. When you have your own money invested in your business, you will feel responsible for saving it. As your business starts to evolve, you can feel free to consider some investors too. Go For Venture Capital Venture capitalists are professional managers of finance who invest in only those companies which they believe have the potential for success. You can go for venture capital to raise small business loans if your business has passed the start-up phase and has begun generating income. These professionals invest in a firm against equity and exit when there is an acquisition or an Initial Public Offering (IPO). Some of the downsides to Venture Capital is that they provide funds to businesses to recover them within a shorter period, usually 3 to 5 years. This is because they have no guarantee or belief of loyalty. So, if your product is not screaming success in the market within a period, you will lose their interest. Go For Crowdfunding For Acquiring Funds The method of Crowdfunding has been gaining fame in recent years. It is somewhat similar to acquiring funds from more than one person at the same time. In Crowdfunding, the business owner has to put up a proper description of his business on a Crowdfunding platform. They have to mention their plans and methods of earning profits. The information will be given in such a way that it is appealing to the eyes of the customer, and they start to like it. People who will be contributing money will pledge online that they will buy the product beforehand or make a donation. This method of generating funds is perfect for new entrepreneurs who are unsure whether their products will be demanded. They also do not have to worry about professional investors and brokers as they are putting their financial matters in the hands of the common people. Win Contests And Generate Funds There are a massive number of opportunities available by which you can maximize raising funds. Winning such contests will also provide fame to your business, making it perfect for newly established entrepreneurs. It also fosters them to come up with new and better ideas for the success of their business. Since winning a competition requires you to be highly creative, using your innovation to make your work stand out will put you one step ahead. [B-02] Go For Bank Loans To Raise Funds Banks are the first option we think about if we have to generate professional loans. One can get both working capital loans and funding loans from banks. A working capital loan involves completing one entire cycle of revenue-generating activities. On the contrary, a funding loan comprises the sharing of business plans along with other details, based on which you will receive the loan allotted to you. Every bank has its way of offering finance and small business loans. So, keep in mind that you do your research and go for the banking option most suitable for your needs. The modern business funding options provided for you above will be best to raise funds if you are a newly established entrepreneur.

08-11-2023

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What Financial Documents Are Required for A Business Loan in India?

A business, whether during its initial stages or not, is in need of funds to afford certain expenses and secure a place in the corporate world. In order to raise such funds, most businesses opt for help from business credit cards, relatives, and many more sources. Some entrepreneurs opt for a safer and more reliable source of raising finance through a business loan. A business is often in need of funds in order to maintain an appropriate cash flow rate. They also try to acquire sufficient working capital to meet the various expenses of business activities and ensure profit-earning. A lot of activities, like purchasing inventory and advanced equipment, hiring efficient employees, and so much more, require a stable loan and a proper business loan interest rate. One can also apply for a business loan by approaching traditional banks, non-banking financial institutions, crowdfunding, and also government corporations. There is no end to the number of institutions from which you can obtain these kinds of loans. [B-01] Benefits Of Business Loans Opting for a business loan can provide you with a lot of financial benefits, which will prove to be advantageous for you in the long run. From getting surplus funds to getting to choose from a lot of options, you will not have to face any issues in the process. 1. Better Flexibility There are a lot of options provided to business owners to apply for a business loan. One can choose from long-term to short-term loans, with different amounts and flexible interest rates. Your loan tenors can now be selected on the basis of your estimated calculations too. While short-term business loans go for a period of one-year, long-term loans offer the same benefits for a duration of five years or more. 2. Easy Management of Working Capital After being eligible for a business loan, you can get your hands on funds that will allow you to fulfill your capital requirements and take your business down a more successful road. With the help of such a business loan, you will be liable to ensure smooth maintenance of cash flow. It will also serve as a boon in helping you ensure financial stability in the long run. 3. Low And Affordable Interest Rate Financial corporations offer loans at a low business loan interest rate so as to ensure convenience for the borrowers. The rate of interest depends on your creditworthiness, the amount of loan borrowed, and the duration. Non-Banking Financial Corporations (NBFCs) provide loans after charging nominal processing fees. Apart from this, they tend to relieve the borrower from paying the prepayment penalty. 4. Loans Granted Free from Collateral A business loan granted by alternating companies of finance like NBFCs is free from collateral. This is beneficial for small businesses as they can now avail funds and easily work towards success. 5. Flexible Options for Repayments Such business loans, along with their convenient business loan interest rate, offer flexible repayment options for the benefit of the borrowers. This assures smooth and on-time repayment of loans, thus keeping the borrower’s interests in mind. They can now feel free to work out their repayment plans after discussing them with the lenders. Due to the loads of options to choose from while you apply for a business loan, you can also avail the facility of lowering or increasing EMI according to your rate of profits. Documents Required for Acquiring Business Loan To fulfill business loan eligibility and obtain approval from the lenders, one must submit a handful of documents that are bound to be carefully analysed. 1. Identity Proof If you are opting for a business loan as an individual or firm, an appropriate identity proof (like a PAN card) is required. 2. Address Proof A passport, voter ID card, ration card, or driving license will be required in such a case. 3. Bank Statements For getting your business loan approved, proper bank statements will be asked for the last six months. 4. Proof of Continuation Documents like the Sales Tax certificate, Trade license, ITR, or Establishment will be essential. 5. Income Statements The latest ITR will be required. Your business’s computation of income, balance sheet, and the profit and loss account for the past two years will be demanded. 6. Other Documents Required You will need to present your Sole Proprietorship Declaration, Certified Copy of the Partnership Deed, as well as a properly certified copy of the Memorandum and Articles of Association. The Board Resolution’s certified copy will also be needed. [B-02] Avail The Benefits of a Business Loan Today! After providing all the documents needed to accelerate the process of business loans, the lenders will carefully examine them. If everything goes according to the listed plans and you become eligible for the loan, you will face no further hindrances in claiming it. All you have to do is make sure that everything goes smoothly and there are no problems from your side.

08-11-2023

Tips & Advice

What are the different types of Professional Loans?

Professional loans are considered to be subsections of personal or private loans. These work with the sole motive of granting relief loans to professional servicemen. This may include Chartered Accountants, doctors, and other private business owners. One can opt for a professional loan to fulfill their business obligations, like meeting the costs required to run a business smoothly. They are also liable for helping you meet personal as well as other related expenses. [B-01] Features Of Professional Loans You Must Not Miss Out On One can be granted a loan of a minimum amount in lakhs, going up to a large lump sum of about Rs.2 crores. The tenure for professional loans can extend up to a period of 5 years. A compulsory requirement for any collateral or mortgage is not essentially universal. However, some banks can ask for it. The flexibility of business loans makes them stand out from all the other loans. You can easily repay the amount borrowed through post-dated cheques, an EMI facility, and even an ESC Mandate. One can also get the relief of financing business travel-related expenditures, including accommodation costs, airfare, and so much more, by opting for such a loan. One can utilize this kind of loan on a professional basis, like purchasing office equipment, hiring employees, renting an office, and so much more. The principal amount and the interest rate charged by the bank depending on the profession or business practiced by the individual. Some Benefits Of Business Loans One Must Definitely Know About We bet you didn’t know about several health benefits of professional loans. From getting a higher amount of loan at a considerable rate of interest to getting a flexible repayment tenure of about 50 months. With the benefit of getting a steady approval not minutes after meeting all the requirements and eligibility criteria, you are sure to be at ease. You can also enjoy a completely online application process with convenient processing so that you do not face any hindrances. One of the most prominent reasons for opting for a professional loan is the flexibility of buying real estate in order to enhance your business tasks. In order to make sure that enough capital is available to meet your daily requirement, the professional loan is a clear-cut choice for you. The Various Types Of Personal Loans For Professionals 1. Professional Loan For Chartered Accountants A liable Chartered Accountant can be granted a business loan to fulfill the process of hiring employees for their profession and for finding a perfect office and renting it. One can also make use of this loan to satisfy their personal expenses. 2. Professional Loan For Lawyers As we all know, a lawyer emerging at first does not have a certain level of income. So, in order to hire employees or even rent an office, business loans can definitely come in handy. 3. Professional loan For Engineers An engineer will find opting for professional loans really helpful for setting up their own engineering firm in no time. 4. Professional Loan For Doctors Being granted a professional loan can boost a doctor’s profession. He can achieve a better and more beneficial practice by opting for such a loan, as it will help him do all the right things. He will be able to purchase specialized medications as well as equipment and get habituated with the best of the best. Eligibility Criteria To Get A Personal Loan For Professionals While this loan is flexible and easy to obtain, one has to make sure to go hand-in-hand with the eligibility criteria set. Some of the requirements include: One must be a citizen of India. One should belong to the 21-60 age group. Having one year of work experience is crucial. Along with this, salaried individuals should have at least six months in the organization they are currently working for. If the person is self-employed, they should have not less than five years of experience in the business world. Along with this, they should have at least three years of experience in the organization they are currently working for. The minimum income criteria that salaried individuals should meet is Rs.20,000. But for the people working in metro cities, this criteria goes up to Rs.25,000 per month. Self-employed individuals should cope with the minimum yearly income in India. The individual should have a CIBIL Score of about 750 or more. All the documents are a must for both the salaried and self-employed individuals. [B-02] Opt For A Professional Loan To Meet Your Expenses Today! The rate of interest on personal loans for professionals begins from 11.99% annually. This makes it one of the most flexible and customer-friendly loan options available. Apply for a professional loan today and reap all of its benefits!

08-11-2023

How To?

How to Renew A Two-Wheeler Insurance Policy in India?

Renew your Bike Insurance Policy at home! Are you trying to renew your bike’s insurance policy before its expiry? You can follow these simple steps to renew your bike insurance policy at home. [B-01] WHY DO YOU NEED AN INSURANCE POLICY FOR YOUR TWO-WHEELER? Do you prefer riding a bike instead of driving in traffic? Most Indians prefer to use two-wheelers like bikes and scooters. Bikes are economical because they are cheaper than cars. You will also spend less on petrol if you use a bike. You can also buy an electric bike or scooter. If you live in a city, traffic can be a big issue. You can ride a bike more easily in traffic. You also don’t have to worry about parking. A bike needs less parking space. However, despite all the benefits, riding a scooter or motorcycle also has risks. India has more than 1200 road crashes daily. Two-wheelers are responsible for 25% of the deaths in road accidents. In cases of accidents, lack of insurance can cause a lot of problems. If you don’t have insurance, you will have to spend a lot of money on repair after an accident. Therefore, it is essential to be safe before riding a bike. You should always have an insurance policy. Buying a suitable insurance policy for your motorcycle keeps you and your vehicle safe. Here are three reasons why you should always buy or renew your bike insurance policy, 1) The Motor Vehicles Act (1988) makes two-wheeler insurance mandatory for everyone. If you have insurance for your bike, you don’t have to pay for causing injury to a person or damage to property in an accident. Instead, your insurance company will pay damages to the third party. 2) Driving a vehicle without insurance is illegal in India. Anyone found riding a bike without insurance will have to pay fines. You can also be jailed for up to 3 months. 3) An insurance policy protects you against any damages that might happen to your vehicle in an accident. The insurance policy also covers damages caused by earthquakes, floods, and fires. If your bike is stolen, you can also receive money for that. Are you worried about losing your money if you don’t claim any damages during the validity of your insurance? You earn the NCB or the No Claim Bonus if you don’t make a claim. The NCB is a discount you get during your insurance renewal for every claim-free year. Many companies offer bike insurance policies. You can find a policy that best suits your needs. You can also build an insurance policy depending on the damages you want to cover. Presently, there are three basic types of bike insurance policies in India : 1) Third-Party Liability-Only Cover: In these policies, your insurance will only pay for any damage, loss or injury caused to the third party. You will not receive any amount for the damages to your vehicle. You will have to pay for any damage to your bike yourself. 2) Standalone Own Damage Cover: This insurance policy provides for damages to the insured vehicle only. You will also have insurance in case of damage due to earthquakes, fires, floods and theft. But in case of an accident, your insurance policy will not cover the damages to the third party. You should always buy third-party liability coverage with these policies. 3) Complete Two-Wheeler Insurance: This kind of insurance policy will give you maximum benefits. They protect your vehicle and pay for third-party damages. According to the IRDAI, it is now mandatory for bikes to have a 5-year insurance cover. A 5-year insurance plan is great because you don’t have to worry about renewal yearly. However, it is essential to keep the expiry date of your policy in mind. You should always renew your bike insurance before expiry. You can renew your insurance by following these simple steps: 1) Check your insurance expiry date You can visit the VAHAN website. Check your expiry date by following these simple steps: 1. Visit the VAHAN website and click on the menu tab. 2. Go to “Know Your Details” and enter your vehicle number and the verification code. 3. Click on ‘Search Vehicle.’ 4. You can check the expiry date under the ‘Insurance Up to’ column. 2) Go to the insurance company’s website You have to visit the official website of your insurance company. Search for the “Two-Wheeler Insurance Renewal” option. You can also renew your policy using an app if the company has a mobile app. You can log in to the app with your details and follow the earlier mentioned steps. 3) Fill up the renewal form You will have to fill up a form to renew your insurance. You have to provide your current policy number, registration date, model, engine number etc., in the form. Please keep the necessary documents nearby before filling up the form. You should carefully check all the information before submitting the form. 4) Select your insurance policy You have to submit the form after filling it up. After checking the information, you should submit the form. Companies have different types of two-wheeler insurance policies. You have to select a policy that fits your need and budget. You can check the premium amount after this. Then, proceed to payment. Multiple payment options like net banking, UPI, and credit/debit card are available. You can choose any mode of payment to pay the premium. You should always download the payment receipt. 5) Download your insurance policy. Download your insurance policy after payment. You should always keep your insurance documents with you while riding your two-wheeler. The insurance card or papers is also identity proof. You should never provide personal or bank details to any company. The insurance company does not ask for these details. You can contact the customer helpline if you have any problems while renewing your insurance. It is your responsibility to renew your bike insurance on time. You should always wear a helmet before riding the bike and follow traffic rules. [B-02] A financial expert like Piramal Finance offers you accurate and authentic information on insurance policies and renewal-related information. We will suggest what’s best for you and help take care of your personal loan requirements if any.

08-11-2023

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What To Know Before Asking Someone To Cosign On Your Small Business Loan

When you ask someone to cosign your business loan, you ask them to take a guarantee for any default that could happen from your end. Predominantly, a cosigner is supposed to have a splendid credit score and a significant amount of assets. A cosigner plays a major role in attaining the funding if you cannot do it alone. They can also help in lowering the interest rate with their reputation without bringing a collateral requirement in the deal. The lenders ask people to get a cosigner because that increases the chances of quick approval of the business loan with minimal hassle. [B-01] Before your loan is approved, the lender will go through a thorough check of your credit history along with the cosigner’s credit history. This is one of the reasons why the cosigner is supposed to be there with you throughout the entire loan process. Even though it is a cosigning loan for them, they take most of the risk with the responsibility of repaying the loan in the event of your failure. 1. Debt To Income Ratio Even after having a cosigner for your business loan, you will be held equally responsible for your loan repayment. If you have a considerable debt to income ratio already, this debt will add up. This, in turn, will spoil the chances of you or the cosigner obtaining another credit. However, if you and your cosigner have a low debt to income ratio, this loan will not add up much to your ability to gain credit. 2. Credit Score When you are asking someone to cosign your loan, you have to make sure that they have a good credit score. You also have to look after this loan’s impact on you and your credit score. This is because if you fail to repay the loan, it is going to affect their credit score as well. However, if the loan is repaid on time, both your credit scores will level up. So, make sure that you choose someone trustworthy and understanding as your cosigner. 3. Accountability Do your best to have clear communication with your prospective cosigner about the likelihood of any sort of events happening. The consequences of your failure to repay the loan should be properly comprehended by the cosigner so that there is no issue in the near future. Risks Involved In Getting A Cosigner If you fail to pay an installment, the lender can start going after the cosigner to fetch your loan repayment. This could affect your relations with the cosigner. If you or your cosigner are unable to pay on time, any one of you will have to pay a late fee along with the loan repayment amount. Even after that, if your cosigner refuses to pay the loan installments, the lender will start going after your assets, and you could go bankrupt. If yours are not enough, they could also go after the cosigner’s assets. Making It Better For The Cosigner To make this loan or business loan better for the cosigner, instead of a burden, you can prepare a contract that states how much the cosigner will be responsible for in case of default. The contract can also include a clause that states that they can take you to court and make you responsible for their legal fee in case of failure of repayment. The contract should also have a clause that promises to take the name of the cosigner off the loan once you refinance the loan yourself. How To Ask Someone To Cosign? The first step here would be explaining to your potential cosigner why you are in need of this loan. Specify the reason why you are not getting the loan solo and ask them if they are willing to help you out. Secondly, you can ask them if they want to become the primary borrower of the loan. This would imply that you will pay them, and they will make payment to the lender. Offer collateral that will be of enough value. With that, if you are unable to repay the loan installment, your cosigner can sell that off. Decide on a date until you remove the name of the cosigner from the loan. This will give them certain assurance that you are not 100% dependent on them. [B-02] Should You Get A Cosigner? Before you obtain a cosigner, prepare a plan of action that would be wise enough to put to execution in case of any mishap. This plan would also build the confidence of the cosigner and help you gain their trust in turn. However, if your cosigner refuses to sign your business loan or any other loan, then maybe you should try to find another cosigner instead of forcing them and ruining your relations with them.

08-11-2023

How To?

Retail Business Loans: How to Qualify and Use Your Loan

There may arise a situation where you will deeply be intrigued about the functions, eligibility criteria, and uses of retail business loans. There are numerous ideas and topics that will make these kinds of loans understandable. There exists a variety of ways that will assist you in growing as well as expanding your business by using retail business financing. [B-01] Some Options For Retail Business Financing You Must Know About Before finding and opting for retail online loans, make sure to look through the following options for your benefit: 1. Loans For Small Businesses Numerous lenders are reluctant to provide small business loans to a retail businessmen. They do so by enriching them with the flexibility of repayment options. 2. Business Lines To Credit If you are looking for various ways to finance your retail business, using a credit line will solve all of your issues and ensure you are making purchases you can afford. 3. Financing Equipment An Equipment loan will come in handy if you are looking for funding to finance your purchase of necessary equipment. 4. Merchant Cash Advances If your business accepts payments using credit cards, you may be able to qualify for a retail loan, which will make things easier for you. 5. SBA (Small Business Administration) Loans The expansive SBA company provides loans to a large number of small retail businesses. They offer comparatively lower rates of interest, but for that, approval for traditional funding loan options is crucial. Some Of The Requirements To Qualify For a Retail Business Loan There are certain criteria one must tick in order to qualify for being granted a retail business loan. These include: Returns From Taxation Duration Spent In Business Proper And Acceptable Credit Score Efficient Utilisation Of Funds Revenue Received Annually. Steps To Follow For Using A Retail Business Loan After considering the options for online loans, you must look through and analyze the steps to follow for using such loans. 1. Purchase Of New Stock (Inventory) If you wish to run a successful and profitable business, the first and most crucial thing to keep in mind is needing the right quantity of inventory for your business. Opting for a retail loan allows you to develop a healthy clientele with your clients. If you find yourself stuck in the situation of constantly running out of stock and never having enough, an MSME loan is most suitable for you. 2. Establish A New Location For Retail Business If your business is at the stage of the boom, but you are unable to meet your customer demands due to a shortage of funds, opening a new outlet will be a great opportunity to boost your business. For this, you must start to develop an expansive project. This will require you to make investments such as purchasing real estate, hiring employees, and buying inventory. By opting for a retail business loan, you can avail all such services at really affordable prices. It will help you afford the expenses which will come hand-in-hand with your new location. 3. Payments To Be Made For Advanced Technology Getting hold of a retail loan will provide efficient ways to make jobs easier for your employees while simultaneously providing your customers with the experience of a lifetime. Having advanced technology will prove to be a stand-out point in front of all of your competitors. For this, you must make use of a business template that is sure to improve your business. Another important factor you must consider is looking out for new business opportunities and overcoming hindrances that can cause your business’s downfall. 4. Develop And Hire Efficient Staff Members Being understaffed can be one of the many reasons for the stoppage of success in your business. By recruiting new employees, you are sure to take your business towards a profitable and successful path. Framing a Strong, reliable, and efficient team full of hard workers is key to a successful business. Thus, it helps the opportunity of being granted a proper MSME Loan. 5. Enhance Your Business Overall The physical appearance of your business should be pleasing to the eye in order to attract more customers and build a strong base. Enhancing your store layout as well as interior designs can boost the number of customers shopping in your store. Improving the appearance of certain corners of your store, like the check-out counter, can be a boon for you. Choosing an aesthetically appealing interior for your store can also allow customers to be attracted. [B-02] Reap The Benefits Of A Retail Business Loan Today! Apart from the points mentioned above, one must also invest in their desirable marketing strategy and improve their cash flow to assure steadiness in their business. Now is the perfect time to apply for a small business retail loan, as we assure you will not regret it.

08-11-2023

Tips & Advice

How Can Technology Help Improve the ROI Of Non-Profit Organizations?

For a non-profit business to work, there are usually people required who would sanction business loans to them. However, the competition has been rising with each passing day. The reason behind it is that our world is going digital with technology. This is making it difficult for organizations to look for donors. A non-profit business makes vigorous use of technology to manage relations with its clients. Clients and donors prefer organizations that are transparent about their investments. This leads to businesses having to cut down on their internal costs and expenditures. [B-01] Let us learn about how technology can help make the most of ROI and improve it in no time. Make sure you read this article all the way to the end. 1. Cloud Computing It is a cost-cutting technology that a non-profit company uses for the running and storage of its application data. This is done using the internet through the use of shared services. They offer file storage, web conferencing, accounting software, email, office productivity, etc. Cloud computing software offers the above-mentioned benefits that lead to time-saving and cost-saving for non-profit business organizations. This automatically leads to a better ROI. They use cloud computing to manage a large variety of tasks more simply and easily. It facilitates the running of several applications at once. There can be the use of special fundraising applications on the internet that would fetch the organization online loans. This technology also eliminates the need for different departments to chalk out their tech and data. The best part about these tools is that they go through an automatic update. The software can be accessed from any place since it works through the internet. It also cuts down on the cost of paperwork as it is maintained digitally. Critical operations that work internally are strengthened with the assistance of this technology. 2. Customer Relationship Management Technology (CRM) A non-profit business uses this technology to improve relations with its customers. In most cases, the customers of the organization are the donors themselves. This is why a touch of personal relationship is very important for them. A non-profit business gives this personal touch a push by sending them customized messages and interacting with them regularly. Many times, they also opt for collaborations with their customers. The benefits that CRM technology offers to a non-profit business start with the maintenance of the contacts of the donors and prospective customers. They drive the growth of the business by managing the organization’s marketing campaigns. They also try to manage the schedule of the members of the organization and help them look for the right volunteers for a particular task or activity. CRM also helps in formulating a strategy that helps in fundraising. With better relations between donors and the company, the growth will be more than anticipated, and the ROI will go up. 3. Communication Technology Technology has facilitated the communication between the company and its client better. However, there are several ways in which you can communicate easily, but it is on your non-profit companies to choose the donor’s preferred mode. An example of effective communication between the donors and the organization would be the use of weekly newsletters by the Churches. This proves that if your organization chooses the right communication technology, the donors would prefer to engage more. The right communication technology can also help your organization gain business loans by sending messages to the target group. It will help the organization meet any needs that are event-specific or season-specific. These messages also entice the donors to react quickly. 4. Simplified Donation Process The final way in which technology helps your company get online loans is by integrating a simple donation process. Most non-profit businesses take a long approach to attract donors. However, it is not meant to be so cumbersome. This is why the donation process should not be complex. The fundraising software used by non-profit companies is mobile-friendly and customizable. This software will help them collect more donations to carry out projects or marketing campaigns. The donors can donate without creating an account, and they get their receipt within 24 hours. The legal compliance maintenance ensures that the donor feels that he has donated for a legitimate cause. [B-02] Key Takeaways With the use of these technologies, getting donations for non-profit companies gets better and easier. This funding helps them increase the operation of their organization and leads to the growth in ROI. Many companies also prefer giving online loans and other types of loans to non-profit businesses as a part of their Corporate Social Responsibility (CSR) activities. If your organization catches the eye of these corporate companies, there is a chance that they will become your donor.

08-11-2023

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Top 6 Small Business Finance Options for Women

Finding a loan to fund your business is not an easy job. Historically, women have found it even harder to get business financing than men. However, the number of women owning small businesses is steadily growing. At present, 36 percent of the small businesses across the world are owned by women, which certainly paints a hopeful picture. Accordingly, the number of financing options for women has also increased in the last few years. So, if you are thinking of taking a loan for your business but don’t know which avenue to choose, here’s a showing you the way. [B-01] Top six financing options for women The type of funding that you can access varies based on the nature of your business. As such, these are the six most viable options for you to consider: #1 Small business loans for women Getting a small business loan is the most popular way to finance your business needs. Typically, you need to pledge an asset (collateral) to secure these types of loans. Most lenders take the following factors into account to sanction a small business loan: your credit history the type of business the current company assets the duration of being in business After you get the loan, you will have to pay it back in regular instalments of a predetermined amount. You will also have to pay the interest that’s charged on the rest of the money you owe. Traditionally, it took three to four months to process these loans. However, thanks to the online application facility, now you can apply and get the loan within one or two days. #2 A line of credit for the business Think of this as borrowing money through credit cards – you borrow an amount that you need at the moment. Then, you pay the amount back within a certain time and pay interest only on the amount you borrowed. If you have working capital loan eligibility, a business line of credit can be a good idea. #3 Lease financing Rather than straight away buying all the equipment you need at the time, you can lease them for your business. It is a comparatively affordable option than buying because you don’t have to spend too much in one go. You can lease things like machinery, computers, and cars for a particular time period. Lease financing can be short-term or long-term. In the case of the former, you return the equipment after the lease time period is over. An advantage of this option from the business point of view is that you can upgrade to the latest version of the equipment through a new lease once your old lease expires. On the other hand, long-term leases or capital leases are meant to fund the purchase. You are supposed to be partnering up with your lender in buying the equipment. You need to make the payments in instalments until the amount is paid completely. #4 Small Business Administration (SBA) loans A variety of loans for women in business have been designated by the Small Business Administration. You mainly need to tick two boxes to get your hands on these loans – a solid business plan and a good credit report. Now, the SBA is not the one giving out a professional loan here. However, they are the ones promising to ensure that the business is going to pay the loan back duly to the lender. #5 Working capital loan If you have a well-running business with a good revenue stream, a working capital loan would be great for your small business. It gets you benefits like the flexibility of usage and shorter payment periods. Thus, if you have an emergency need for funds anytime, these loans are a simple and versatile way to arrange the money. #6 Merchant cash advances It is a kind of finance that allows you to get a lump sum amount as a cash payment in return for a part of future sales receipts. Instead of paying monthly instalments as you do with conventional loans, merchant cash advances are paid through the individual sales of your business. It can also be paid through weekly or daily payments if the terms are laid down that way. Typically, merchant service companies lend out such cash advances. It is beneficial because the application for the funding, receiving the advance, and the repayment becomes streamlined. Thus, this kind of funding might be a good choice for any business with a high sales volume. [B-02] The bottom line There is no denying that you have more financing options now than ever. However, you need to choose an option with extreme care. Before you forward that financing application, figure out how you are going to repay it. The last thing you would want is for your business to suffer because you could not pay the amount back on time.

08-11-2023

Tips & Advice

What are the Benefits of Getting a GST Business Loan?

A GST business loan is prudent for businesses that want to keep their cash flow consistent. If your business lacks the funds it needs for its success and advancement, this type of loan can be helpful. Whether you are looking for rapid business financing or exceptional financial flexibility in the coming years, these business loans can be all you need. But that is not all. [B-01] GST business loans have proved to be helpful for those who are looking for both long-term and short-term financial business solutions. If you are also looking to obtain a GST loan right now, this article is important for a thorough read. 1. Collateral Free Loan Generally, most business people wish to obtain SME loans. However, if they lack collateral or they cannot meet the lump sum paperwork, the loan gets denied. This can put them in a spot and make them wonder how to derive the right funds. You can easily obtain a GST loan and get a collateral-free loan with GST registration. This implies that you may not have to do any paperwork that will cost you energy and time. All you need to do is submit your returns along with the KYC documents. As soon as these elements are inspected, your loan will be granted to you on time. 2. Rapid Disbursal Your business is most likely to keep you on your toes all the time. In the middle of this, it becomes difficult to chalk out time and wait for the document verification or even loan approval. This means that an urgent need for quick disbursal arises even if you want a small business loan. At this point, it is wise to opt for a GST loan. This type of loan provides a quick disbursal system that does not hinder your work productivity. All you need to do to obtain the GST loan is to visit your lender, upload the documents on their portal and make the most of the loan in need. 3. Multiple Purpose Loan The business loan you receive from a GST loan not only helps you to make use of one but several purposes. So, as soon as you have your GST registration, you can work out your capital demands, and deal with equipment purchased, and business expansion facilities. This means that your business can make the most of the loan available to it for the best experience. 4. Manage Business Control Is your business looking for sufficient funds that can help with equipment purchases? If yes, this type of business loan is all that your business seeks. Even if your business is looking for expansion, you can manage it with a GST loan. In fact, this form of loan also lets your business make the most of its finances conveniently when the need arises. That is why it is important to try and file the returns timely. The business control that GST loans can offer to your venture can also be useful to make it soar to heights. 5. GST Loan Eligibility The GST business loan is available to anyone looking to make the most of their business. Any form of company, be it sole proprietorships, public limited companies, or private brands, can use the GST loan for diverse purposes. To understand the interest rate of your GST loan, you must figure out your credit score, your business’s previous financial success, and more. Speak to a financial expert to help you get into more vivid details of the same. They are most likely to provide you with information on the documents required for this GST registration as well. When Should You Obtain A GST Business Loan? 1. Financial Document Shortage If your business documents are not up-to-date or in place, you can still choose to go with any issue relating to them. A GST loan can help you to mitigate this risk. Since GST loans do not require enough documentation, you can easily apply for this loan on time. Generally, lenders scout for minimal documents when approving the loan. So, you can have peace of mind throughout the process. 2. Working Capital Demands If there is a dearth of working capital for your business, GST business loans can come to the rescue. So, you do not have to give up on the dreams and aspirations you have set forth for the firm. Your company can still choose to touch heights and purchase equipment to deliver a paramount customer experience. [B-02] The Bottom Line For a GST business loan, you must have a few necessary documents on hand. Make sure you carry your address proof, PAN card copy, and business continuity proof. Also, make sure to carry a balance sheet and loss statement if you are looking for funds more than Rs. 20 Lakhs. We highly recommend you opt for this loan online as it is easier, more flexible, and takes less time.

08-11-2023