How To Obtain A Business Capital Loan
Working Capital loan provider in Chennai
A business capital loan is also known as a, ‘working capital loan’. This loan is obtained for the everyday proceedings in the business. It helps fill the financial gaps in an everyday operational company. It is not used to buy long term assets or invest in the business in huge amounts, but used to pay wages, buy petty things for the offices, etc. Companies that go through a lot of cyclical sales always require working capital loans if they lack adequate amount of money to fulfill the requirements.
Chennai is growing greatly in the financial sector. It has thousands of companies depending upon the loans provided by banks and financial institutions. Businesses prefer taking loans from financial institutions because of the convenience and services received. TN Finance is one of these popular financial institutions in Chennai that would help you step by step to get your business capital loan as and when you require.
To understand how to obtain a business capital loan in Chennai, here are a few important points:
- If you are start-up company, it is important you talk to an advisor before you choose the amount and type of loan you are about to apply for.
- You will need to have a good credit score. If you have no credit score you will have to build it first and then apply for the loan later. There might be credit underwriting parameters which might create unique offers for your business and that would differ according to the financial institution.
- Applications is fast these days, one can apply online which would hardly take 10 to 15 minutes. Many financial institutions have apps to help as well.
- In Chennai, it is TN Finance that offers you the option of flexible repayments, so that you can manage the cash flow efficiently and fill the gaps in the working capital expenditures.
- You will also not have to pay any pre-closure charges if you can repay the loan before the date you are supposed to. You will not incur any sort of fees.
- There is a GST rate that will apply to your loans as it is a product or service that the financial institution is offering you.
In Chennai, the loan applicant has to be at least 25 years old and maximum 65 years of age. If your business is not a start-up, it should be not be bankrupt or insolvent. These are the important papers you will need for approval of your loan application in Chennai:
- You will need to show your IT returns from the last 2 years, and there should be not flaws.
- If your business is at least a year old, you will need to present your balance sheet for the year.
- The bank statements since the last six months.
- The KYC should be done, address proof, ID proof of the business and the owner are mandatory to show.