Get Your First Business Loan Through These 7 Simple Steps

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To run a firm efficiently, you must always have
enough money. Particularly if you intend to grow,
expand, or diversify your company. But there may
be occasions when your company lacks the
necessary cash flows to cover your present or
impending debts. This is the situation where a
business loan is useful. However, you need
thorough planning and thorough documentation to
obtain a business loan. Along with an in-depth
evaluation of your company to precisely ascertain
its eligibility for and loan requirements. A
business loan requires more than simply the need
for more capital and a well-completed application
form. But dont be concerned. If youre applying
for a business loan for the first time, weve
compiled a list of 7 basic steps you can take. It
will enable you to quickly secure a loan from
the best business loan provider in India.
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A 7-Step Checklist for Obtaining a Business Loan 
Step 1 Determine the Required Loan Amount  New
firms should first assess how much money they
will need to start off. Understandably,
determining the precise amount of capital needed
to launch and expand a firm is difficult.   Howeve
r, entrepreneurs can start the process by first
evaluating the upfront costs associated with
starting their business. Some of these regular
costs include the cost of purchasing tools,
machinery, cars, and computers. Along with
initial inventory, raw materials, essential
office supplies, and costs related to getting
permissions and licenses.   Then, an estimate for
foreseeable maintenance and repayment costs can
be included. Once the required loan amount has
been estimated, a start-up can reasonably
estimate it. 
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A 7-Step Checklist for Obtaining a Business Loan 

• Step 2. Identifying the Ideal Business Loan
• With a clear picture of your capital needs, you
  can then decide on the type of loan thats a
  perfect fit. Traditional business loans provide
  flexibility with no stipulations on end-use.
  However, there are tailored options such as
• Working Capital Loan To cater to day-to-day
  business operations.
• Equipment Financing Specifically for procuring
  machinery or equipment.
• Line of Credit Offering flexibility to withdraw
  funds as and when required.

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A 7-Step Checklist for Obtaining a Business Loan 
Step 3. Crafting a Robust Business Plan When you
approach lenders, theyll often request a
detailed business plan. Think of this as your
businesss CV. It will encompass data on revenue,
anticipated expenses, projected cash flows, and
any upcoming investments. Your business plan is
not just a blueprint for your companys journey
but a tool to instil confidence in lenders.
Theyll delve deep, looking for your businesss
Unique Selling Point (USP), the demand it
addresses, and the pace at which its likely to
become profitable. Additionally, ensure you
possess all necessary permits and licenses for
your business as lenders might check for these.  
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A 7-Step Checklist for Obtaining a Business Loan 

• Step 4. Assessing Loan Eligibility
• Once your business plan is ready, its essential
  to gauge if you meet the lenders eligibility
  criteria. While specifics vary across
  institutions, a high CIBIL score, typically above
  700, is a universal requirement. For fledgeling
  businesses without a financial track record, this
  becomes even more crucial.
• Apart from a strong credit score, other criteria
  include
• Being 21 years or older.
• Holding Indian citizenship.
• Some degree of prior business experience.
• Women entrepreneurs might find some leeway in
  these requirements, promoting gender inclusivity
  in business.

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A 7-Step Checklist for Obtaining a Business Loan 

• Step 5. Comparing Lenders
• If you satisfy the eligibility criteria, youll
  likely have multiple lending options. Now, the
  trick lies in comparing these lenders. Factors to
  weigh include
• Interest rates.
• Prepayment terms.
• Foreclosure charges.
• Recent RBI directives compel lenders to reveal
  annual percentage rates, which depict the total
  cost of a loan. Furthermore, assess lenders based
  on their reputation and the feedback of previous
  customers.
• Repayment flexibility is a pivotal factor,
  especially for new businesses which might
  experience fluctuating incomes.

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A 7-Step Checklist for Obtaining a Business Loan 
Step 6. Collecting Necessary Documents Equipped
with knowledge about the lender and loan type,
its time to compile the requisite documents. The
list varies based on the lending institution and
loan type. Traditional banks often have a
rigorous documentation process, making it
challenging for MSMEs without a formal credit
history. In such scenarios, start-ups can pivot
towards government-backed loan schemes or
financial establishments like AGIL. As these
options are known for providing unsecured loans
with fewer documentation hassles. Standard
documents most lenders ask for encompassing
identity verification, income statements, tax
return filings, bank details, and financial
projections.
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A 7-Step Checklist for Obtaining a Business Loan 
Step 7. Commencing the Application Process With
every piece in place, youre now primed to submit
your business loan application. Alongside the
application, ensure you provide the assembled
documents for verification. Establishments like
a loan agency in Ahmedabad simplify this process
by allowing both online and in-person submissions
at their office.
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Conclusion
Venturing into the world of business loans might
initially seem complex. However, by breaking it
down step-by-step, the journey becomes less
intimidating. A well-thought-out approach will
not only secure you the capital your business
needs but also set the stage for a prosperous
entrepreneurial journey. If you want to secure a
business loan, go to AGIL Finance. We provide
the Best Loan Services in Ahmedabad with quick
disbursement and less paperwork. To take
advantage of our fantastic services, contact us
at info1_at_agil.co.in. Read More
Here- https//agil.co.in/blog/get-your-first-busi
ness-loan-through-this-7-simple-steps/
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CONTACT US
91 7845129623 info_at_agil.co.in www.agil.co.in AG
IL D block 2003 Westgate, Near YMCA club, SG
Highway, Ahmedabad- 380015
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