As a business owner, you require funds for various aspects. This can be for covering expenses, expanding your business, covering up for any loss or any future goals. Though you might have the finances required for this, often you might find yourself in need of a business loan. However, many may find getting a business loan easier said than done. Several lenders or banks require a lot of documentation or may assess the loan amount depending on your revenue. What if your business is a start-up? Or a small business that does not have high revenue? Are you not eligible for a small business loan? Well, you need not worry, there are several options where a low revenue-generating business is eligible for a business loan.
This is what you can do to get a business loan despite low revenue.
Prepare a detailed business plan:
A well-drafted and comprehensive business plan will make a significant difference in getting a business loan. This business plan should include your strategy for revenue generation, a firm model for business revenue, a proper management chart, a realistic projection of income, and a crystal clear manner of timely repayment of loans. Collectively they should convince your lender to approve your new business loan application.
Ensure that you have a healthy credit score:
One aspect of loan eligibility is the CIBIL score. This is a standard that several lenders follow. Maintaining a healthy credit score is important as it reflects well on your repayment characteristics and habits. Despite a low revenue, a lender may approve your business loan if you have a good credit score. You should intend to have a score of 750-900 as this is the accepted norm of a good CIBIL score making your case stronger in front of a lender.
Prepare the paperwork diligently:
Besides a firm business plan and a credit score, another vital aspect of attaining a sme loan is to ensure that you have all the required documents and in order. This will add genuinity to your cause and will give an insight into your company’s profitability and cashflow. If you can prove through your documents that you have regular income, profits, and cash flow, it is highly likely that you will attain your business loan.
An easy way to attain a business loan is to get in touch with Piramal Finance. With over 1 million customers and a presence in 300+ locations across India, PCHF is the ideal lender to get a business loan with low revenue. It offers business loans to fund business expansion, machinery installation, inventory stock up, supplier payment or any other business related expense. It has simpler programs designed as compared to other lenders allowing higher eligibility. Their comprehensive assessment facilitates them to give the maximum loan amount to business loan seekers.
Here are some key features of their business loan mechanism:
- Loan to a wide range of customers: Piramal Finance offers business loans to a wide range of customers. It caters to self-employed non-professionals and self-employed professionals. So in case you are a small business owner, PCHF can prove to be the ideal lender
- Digital driven process: Their digitally driven process offers you an online business loan along with quick sanctions of business loan ensuring that you do not have to worry about the usual hassles of getting a business loan.
- Maximum loan amount: PCHF’s business loan is programmed and designed much simpler than other banks and financial institutions. This means that you get the maximum loan to meet your financial requirements.
- Convenient doorstep service: At PCHF, you don’t need to spend hours waiting for your application. Its quick doorstep service allows you to get a loan without you leaving your home or office.
Though a business loan usually requires you to meet several requirements, it’s not mandatory for him or her to have a large revenue. There are several financial institutions that offer business loans despite the business having low revenue. All it requires is for you to reach out to the right financing company.