Many businesses could benefit from non-bank financing. You have a lot of other option available to take Project Loan in Mumbai which includes:
FACTORING: Businesses that need funds faster than their customers are paying them can sell invoices for work already done to a factoring company. Factors pay up front in exchange for a small fee; they pay you 90 to 99 percent of the invoice amount, collect the full invoice amount directly from your customer, then pocket the difference as their fee. Although upfront costs are low, back-end costs can be substantial: Companies typically require businesses to factor a minimum number of invoices every month, and to pay hefty fees if they don’t. This is risky but faster way to get Project Loan in Mumbai.
PRIVATE EQUITY: Businesses in high-growth sectors may be able to secure financing from angel investors or venture capitalists; business owners can negotiate deals with private equity firms that include debt, equity or a combination of the two.
PEER-TO-PEER LENDING: Peer-to-peer lending matches business owners seeking a Project Loan in Mumbai with individuals who are willing to lend them money in exchange for interest. Kiva Zip, Prosper and Lending Club are examples of peer-to-peer lending platforms.
ONLINE LENDERS: Internet lenders like Kabbage, PayPal and OnDeck offer term loans and lines of credit to business owners who apply online. Although they tend to have high interest rates and short repayment periods, their advantages include fast decisions, quick disbursement and flexible lending criteria.
CROWDFUNDING: Businesses can raise needed capital from multiple individuals using Crowdfunding sites like Kickstarter and Indiegogo. In exchange for a reward, like early access to a new product, contributors can donate a little money or a lot, pooling their contributions to fund businesses. Crowdfunding can be especially valuable to startups that aren’t eligible for traditional financing. New businesses can use crowdfunding to generate seed money and demonstrate proof of concept, the latter of which can subsequently help them secure a project loan.
Although businesses courting alternative lenders typically face less stringent requirements, Riddhi Siddhi Multi Services advice people seeking a Project Loan in Mumbai to get the following items prepared:
PLANS AND PROJECTION
Obviously, having a business plan is important. You need to be able to explain why you need the money. If you’re looking to buy equipment, you need to demonstrate how that equipment will help you and what kind of money it will help you make.
HISTORY
Once you’re two years in business, then it’s a good time to go to banks. Banks typically require borrowers to have at least a two-year track record to demonstrate that they have staying power, and two years of documentation— tax returns, profit and loss statements, etc.—to prove it. That helps an underwriter look at how your business is performing over time to see whether you have the stamina and sustainability to run a small business.
GOOD CREDIT
Your credit score has to be at least 680. Banks review business and personal credit, both of which should be free of liabilities, liens and judgments. “Before you apply for a loan, you have to figure out how your personal credit and your personal financial statements look.”
CASH FLOW
Investors always look at cash flow—your revenue minus your operating expenses—and make sure there’s remaining income to pay back the bank debt: Can you afford to pay the loan back?
COLLATERAL
When evaluating a loan candidate, the bank wants to know: Can the business owner afford to pay back the bank? If he or she can’t, how is the bank going to get its money back? The bank may look at your property, retail inventory, business equipment, accounts receivable or other assets as collateral to determine this.
To understand Project Loan procedure better, you can ask Riddhi Siddhi Multi Services any time.