There are several points every woman entrepreneur should keep in mind to help their business flourish, which are –
Prepare the documents and financials
As an entrepreneur, you should make sure that all financial documents of your business are organized and updated to the current date; such documents mainly include profit and loss statements, income tax returns, etc. Referring to the checklist for business loan application can help immensely.
Additionally, you may also have to provide various documents supporting the existence of your business. These can include –
- GST registration certificate,
- Trade license,
- Partnership deed,
- Memorandum of Association
- Business PAN
Moreover, business owners should always be wary of their credit report. A good credit score will provide you with a higher chance of availing a business loan for women. It is also essential for business owners to avoid credit defaults, negative customer feedback, etc. and to keep monitoring their credit score regularly.
Fulfill the eligibility criteria
A business loan usually comprises the following eligibility criteria –
You need to be within the age bracket of 25 to 55 years in order to avail a business loan.
Your company needs to be running for at least three years.
As an applicant, you have to file your income tax returns for the past three years.
Reputed NBFCs such as Bajaj Finserv offer Business Loans for Women at simplified eligibility criteria and minimum documents.
Consider the utilization of funds
You can make use of such a business loan for women for several other purposes such as –
- Improve your business cash flow to increase working capital.
- Expand your office premises.
- Stock up your inventory.
- Purchase higher quality supplies.
Such loans also comprise flexible repayment tenors ranging from 1 year to 8 years. To avail, such a loan, women entrepreneurs are not required to mortgage collateral; thus, it makes the application process relatively fast in comparison to other secured credits.
You can also know about Business Loan App.