Every business starts small, with the hopes of becoming a global name one day. It requires a lot of effort, constant growth, and funds. While you can take care of the first two by working with qualified professionals, you might need to raise funds. A small business loan can come to your aid in such a case. You can research business loan interest rates, but a few factors decide your eligibility. Here are the basics:

• Credit Score: It may be risky, but a business loan of a large amount can be granted to you if you have a splendid credit score and a low-interest rate. The lender will see your credit history, the repayment of previous loans, your credit card transactions, and if all this adds up to a minimum CIBIL score of 750, you’re good to go.
• Cash Flow: A steady and healthy cash flow of your business will assure the lending institution of your capability to repay the loan. So, this is important when deciding your eligibility.
• Age of Business: Most businesses and start-ups shut down in their first year of operations. Hence, any lending institution requires a steady operational age of at least two years before granting a business loan.
• Collateral: There are secured and unsecured loans that you can avail of for your business. While unsecured loans do not require any collateral, the borrowing amount reduces. A secured loan can offer you a more significant amount with a lower rate of interest due to the collateral kept on the table.

Keep these in mind when you apply for your small business loan!

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