Business loans being a Challenge?
It’s very hard and terrifying to get a loan and let’s not forget applying for a business loan is definitely a challenge and the process, quite long.
But it’s not impossible to get a loan, the society for some reason, at least the Indian one, just oppose the idea of taking out a loan because either they are scared or the liability it poses. Now business loans, in this era are quite common but the process is definitely long but if done correctly then it seems to be a joyride.
Do your homework- The first thing you should be doing is getting your homework done; from the start to the end you need to know for which loan you want to apply, how much you want to apply it for and the cause behind applying a loan.
There are lot of options out there that seem quite nice in the beginning but slowly turn out to be lethal in the end. So gaining and collecting a little information about it goes a long way.
Credibility is trustworthy- People do look at taking out loans as a stigma and rightfully so because the lenders have always been posed in the bad limelight hence looking out for the perfect place to get a loan from and the credibility of the bank is quite important.
Alternatives and Choices- There are so many options and schemes when it comes to applying for a business loan.
Always check the terms and conditions of the loan. What is their repayment structure and if there’s any tax benefit you’ll be getting; always remember to never hesitate to ask questions about it because you have all the right to do so. Don’t fall for the various loan schemes out there because really there are some deceiving ones too.
Documentation and Interview- Always make a checklist for all the documents that are required to apply for the business loan application. Here are some documents that might be needed;
- Loan Application form
- Pan Card
- Aadhar Card
- Certificate copy of MOA/ Partnership deed
- Audited Balance Sheet for the last 3 years
- Six months bank statement
- Returns of Directors/Partners
There are going to be people asking you the decision behind taking out a loan , why is there a need for it, what are your plans for it so on and so forth. So buckle up your shoes because there are going to be tough questions that you need to answer like a pro.
Understand the Cost of the Loan- Always ask questions regarding the procedure and check for the money that you would be paying them apart from the nominal amount. Never fall for loans that have staggeringly low interest rates and only take them when you think they have the credibility and it’s a full proof guarantee given by them.
Don’t be afraid to ask Nova Scotia for anything. If you are in need of a loan, we are here to provide you with it.