If you’re the CEO of a huge corporation that needs to expand a certain division, a small business owner who seems to grow, or a young entrepreneur, your top goal is to get cash at the correct time. Here is a list of elements that influence the approval of your business loan.

The borrower’s age

The comfort with which you can obtain a business loan in India is directly proportional to your age. Finding a lender ready to provide a business loan to someone under 25 or over 60 is challenging. 

Earnings

A company with a high-profit margin is approved for a business loan right away. However, if you need a loan for a new business with no collateral, your business plan and growth strategy will influence whether or not you are approved.

Credit Reports

To get a speedy business loan approval, your credit history or business loan documents are crucial. Your credit history establishes your trustworthiness and ability to repay a debt.

Cash Flow

If your company’s cash flow is insufficient, most lenders will be hesitant to offer you money. So, you should maximize your cash flow by using effective cash management and expenditure restraint.

Build a business plan

Your repayment ability is reflected in a business strategy with an appealing sales prediction. It gives the lender insight into your company’s objectives. 

Criteria for Business Loan Eligibility

• You must have been in operation for at least three years.
• The applicant must be between the ages of 25 and 65.
• Audited financial statements from the previous three years and ITRs for at least the last year are necessary.
• The applicant’s credit history must be excellent.

Must Read: How Business Loans Take Your Business to a Higher Level?