SME Business Loan Guide
1. What is a Business Loan?
Ans: A business loan is a loan given to businesses to meet various requirements that they encounter during their business operations. It gives business owners access to credit that can be paid back over an agreed time along with the interest. It can be used for a range of business related objectives like the expansion of an existing business or investing in a new one. At NeoGrowth, we are committed to helping your growing businesses with Business Loans. Our loan repayment is based on your business cycles and hence is a lot more cash flow friendly as compared to bank loans.
2. What is SME loan / SME finance?
Ans: SME loans are specially created loans for the small businesses. These are designed to be in tune with unique requirements which small businesses encounter during various phases of their business.
3. What are the typical business requirements for which business loans are given out?
Ans: Typical business requirements include new product launch, warehousing needs, expansion to new locations, entering new product categories, hiring new employees, marketing and many more such business related needs.
4. How to get financing / business loans for a small business?
Ans: Small businesses have various options to avail loans like banks which have small business unit, NBFC, crowd funding or peer to peer lending etc. As compared to the traditional banking system, non-banking financial companies(NBFC)are quicker and more flexible while serving the finance requirements of SME. NeoGrowth is a NBFC registered with RBI and helps SME's with business loans which are business friendly.
5. How to apply for an SME Loan?
Ans: Every bank or NBFC have their own processes around the application procedure. But broadly, you need to apply online or by going to the branch, submit the required documents and post verification you get a loan.
6. What are the documents required to avail a business loan?
Ans: The documentation requirement for availing a business loan are different for every bank and financial institution. It also varies with the type of business entity and type of loan applied for.
7. How to find the best financing companies in India for your business?
Ans: You need to explore finance options according to your business needs. So for example, NeoGrowth is well suited to serve businesses that use POS/EDC machine or are online sellers. Our flexible repayment model allows business owners to repay based on their business cycles and not on fixed EMI basis.
8. How should you prepare to get a small business loan quickly?
Ans: These are generally accepted guidelines when it comes to getting a business loan from a bank.
- Update your financial records
- Know the value of your assets
- Keep your bank statements handy
9. What is the difference between NeoGrowth business loan and SME bank loans?
Ans: : Traditional bank loans come with fixed EMIs. Also, banks have very strict documentation and eligibility criteria. We at NeoGrowth have minimal documentation requirement, simple eligibility criteria and flexible repayment model with no EMI.
10. How are business loans for online sellers different from traditional bank loans?
Ans: Online business comes with its own challenges and unique business requirements. Traditional bank loans require a lot of paper work, business experience and company financials which online businesses do not generally have. NeoGrowth online business loans have an eligibility criteria and documentation requirement understanding the online business space.