Business owners who wish to expand or fund their businesses and want to cover initial or growing expenses usually opt for small business loans offered by several reputed financial lenders. Almost all of the loan providers offer small business loans for business expansion, with repayment tenures extended up to 50 months.
Eligibility Criteria For Small Business Loan
Most of the banking and non-banking financial companies offering loans expect applicants to meet some eligibility. Be it in India or any country, the basic eligibility is to be met to prove that you and your business are legitimate and all the documents related to your business are valid to your knowledge.
- Business should be operating for at least 6 months or more.
- The balance sheet of the business shows steady profits.
- Documents Required for Small Business Loan
- Provide evidence of business turnover and IT returns over the financial years( if it’s an existing business for more than 2years or so)
Here we can also see the documents needed for verification purposes such as
- Identity proofs (depending on which country based loan provider is approached)
- Certified finance report showing the asset and business net worth
- Business establishment and trade license
- Residential and citizenship proofs
What Is SBA Loan?
This SBA loan is a scheme developed in America by the US small business administration for providing small business loans across their country. This gives businesses access to be part of the SBA program, which helps them find a loan solution that fits best, rather than going through the old, conventional, and typically long outdated banking process. Now that the United States government agreed to authorize SBA loan providers, for funding small businesses, these loans can be quickly approved. This initiative taken by the United States of America has inspired many other countries to provide aid to help the small businesses and enterprise units to grow and improve their economy.
A SBA Microloan program,
SBA Loan for Commercial Real Estate and Equipment(SBA-504) and,
SBA General Purpose Loan(7(a)) . These three main SBA loan schemes allow small business owners to borrow funds for inventory, equipment, working capital, infrastructure, etc. Many small businesses are not capable enough to meet certain demands at times, and with an SBA loan, their financial constraints can reduce to an extent.
Why choose SBA Loans?
If you are a resident or citizen of America, you should be considering SBA loans for your business dreams because of these below benefits
- Low Fixed Interest Rates
- High Approval Amounts
- Popular and Trusted Process
- Longest Payment Tenures
How do your business qualify for an SBA loan?
- Minimum credit score
- Promising annual revenue enough to repay the loan
- 2 Months in Business
Benefits of SBA
- Variable interest rates
- Funding within three weeks
- Flexible and long repay Terms
- Easy repayments
- Improves credit and reduces bad credit
- No Requirements for the Use of Funds