6 Tips To Obtain Business Loan Approval

business loan

A business loan can be really convenient for the self-employed as these can be used for several purposes which include business expansion, meeting operational expenses, providing fresh working capital, purchasing inventory, etc. However, getting a loan is quite harder for the self-employed as compare to a salaried professional, as it involves higher risks.

Let’s explore a list of factors to keep in mind while applying for a business loan with Mehul Mathrani.

Prepare a good business plan

A well-framed business plan is advisable as it will help you in convincing the lender to grant you the funds. Your business plan should clearly define your project’s objective, marketing and development strategies, revenue generation plans, etc. Since lenders consider your revenue generation plans to analyze your business’ viability and repayment capacity, so make sure you have a strong revenue model that explains how you would be repaying the loan on time and your anticipated use of the funds.

business loan application

Be ready with documentation

Even if you have a perfect business plan with well-explained goals, lack of proper documentation can lead to a complete rejection of your business loan application. Before applying for the loan, make sure that you carry all the required documents which the bank may ask for. Documents needed to complete the process include last few years’ KYC documents, entity’s proof, income tax returns, audit reports, bank statements, etc.

Check your cash flows

Your businesses’ cash flow forecasts play a great role in your business loan approval. A solid history of high revenue generation increases the company’s chances of getting the loan approved. In case your business has a weak history including irregular or low cash flows, you may either have to pay a higher interest or your loan application might get rejected. Therefore, before you apply for the loan, double-check the cash flow statements and forecasts to make sure that your cash flow statement would be enough to repay your loan along with the interest levied.

Look at other borrowing options

As different lenders have variable parameters to assess your business’ creditworthiness. Therefore, do not limit your loan applications to specific lenders. NBFCs, and Digital lenders along with banks, also offer a platform to compare and choose the right business loan and also the suitable lender.

business credit report

Assess your creditworthiness

Banks and financial institutions consider personal as well as your business credit history while assessing a loan application. A lower credit score shows you as more likely to default and can prove to be unfavorable to your loan approval chances. Hence, it is advisable to evaluate both your and your business credit report to ensure that your loan application isn’t rejected due to lack of credibility.

Identify risks that lenders assess

When you apply for a business loan, make yourself aware of various traits which may be risky for you. Possibly, it includes weak accounting system, low vintage, repetitive defaults in credit history or irregular revenue. Ensure that your business is not considered risky due to the presence of any such traits.

Final Words

So, these are the few useful tips from Mehul Mathrani, to make your business loan application win-win.

Originally Posted: https://www.allperfectstories.com/tips-obtain-business-loan-approval/

 

Sources of Finance for Small Business

financial

According to Mehul Mathrani – financial specialist, most of the time small businesses come up short at a higher rate than enormous organizations, consequently default chance is likewise high. This is the reason that private ventures have less access to credit than bigger organizations since loaning to an independent company is more hazardous and more costly than loaning to bigger organizations.

Disregarding every one of the obstacles, there are many financing alternatives accessible to little organizations. We should take a glimpse at some of the financing choices and manage the issue of ‘How to Finance a Small Business?’

OWN CAPITAL / SAVINGS

Number one and the least demanding wellspring of a fund for a private venture is one’s own investment funds. At any phase of a business, when a business needs capital, a business person can take advantage of his own benefits, for example, – stocks, common assets, land or adornments – to fund-raise. He can either pitch the advantages for fund-raise or take a credit on any of the benefits. Business people can put such close to home capital in their business as value capital, or they can offer credits to their very own organization.

FAMILY & FRIENDS

Parents, sibling, friends & extended relatives who have who have abundance money to loan might will back your business. They may loan the cash to the business as an advance or might will take a value stake in the organization.

finance

BANKS

Banks have an exceptional office committed to giving advances to little organizations. To get a credit from a bank, organizations need to meet all requirements for bank’s base criteria. Each bank has its very own criteria concerning procuring potential, yearly turnover, financial assessments, and so forth. There are numerous sorts of credits that banks offer, for example, working capital advances, term advances, advance against property, and so forth. Organizations can pick the sort of credits according to their necessity.

SMALL BUSINESS LOANS

Every nation has certain banks or establishments devoted to giving credits just to independent ventures, a case of such organization in India is SIDBI, in the USA there is SBA. The primary focus of these organizations is to loan cash to private ventures who have not possessed the capacity to acquire financing on sensible terms through typical loaning channels. These substances, for the most part, give cash as credits as it were.

PERSONAL LOANS

In the event that an organization can’t get a business credit, the business person should seriously think about getting an individual advance and utilizing it in their business. The business visionary must have a decent record of loan repayment for raising an individual credit. We can get an individual advance by selling a home, gems, and so forth.

Finance for Small Business

TRADE CREDIT

Some independent companies may have providers willing to offer using a loan. Such credit may extend somewhere in the range of multi-month to three months. This is a decent strategy for little organizations to satisfy here and now subsidizing necessities. This is a cheap strategy for a fund for an independent company.

VENTURE CAPITAL FIRMS

Investment firms are a sort of private value firms, the however investor gives assets to just those organizations who are in the beginning times of their business cycles. These are rising little organizations with high development potential. Funding firms put resources into developing organizations in return for value, or a proprietorship stake. Little start-up firms may get an arrangement of rounds of financing from investment firms.

Final Words

These are the few sources to avail finance for business. You can choose one of the sources according to your need and requirement. Mehul Mathrani says, before making any final decision, it is essential to consider all the points and circumstances. In the end, with intelligence and knowledge, you will win the game.

Originally Posted: https://www.allperfectstories.com/sources-finance-small-business/

Importance of Financial Planning in Your Life

FinancialPlanning

Financial Planning plays key role in making a financially stable life. With financial planning you can easily evaluate your long term and short term goals and able to create a balanced plan to meet those goals.

Let’s explore a few major reasons for adapting financial planning in life with Mehul Mathrani.

Income

With planning, it becomes easier to manage income more effectively. By managing income, you will understand how much money is required for tax payments, other monthly expenses, and savings.

Cash Flow

Experts advise you to Increase cash flows and you can do it by carefully monitoring your expenses and spending patterns. Tax planning, careful budgeting, and prudent spending will help you keep more of your hard earned cash.

Capital

 Capital is essential to run a business successfully. And this is possible with the increase of cash flow. Everyone knows that an increase in cash flow can lead to an increase in capital. It allows you to consider investments in order to improve your overall financial well-being.

Financial plan

Family Security

Providing financial security to a family is an essential part of the financial planning process. According to experts, the proper insurance coverage and policies in place can provide various benefits to you and your loved ones.

Investment

 To make a good financial plan you need to consider your objectives, personal circumstances, and risk tolerance. It will help you to choose the right types of investments to fit your needs, personality, and goals.

Standard of Living

 The savings created from good planning can prove valuable in hard times. Suppose you have taken an insurance policy. And there is enough insurance coverage to replace any lost income. Especially when a family bread earner is unable to work.

Financial Understanding

Better financial understanding is possible when you set measurable financial goals. It will give your budget a whole new approach and improve control over your financial lifestyle.

Assets

Having more assets than liabilities is a desire of every individual. Unfortunately, many assets are attached to liabilities. So, it becomes essential to evaluate the real value of an asset. The knowledge of canceling or settling the liabilities comes with the understanding of your finances. However, the overall process helps in building assets that don’t become a problem in the future.

Saving

Savings

Saving is the key! But unexpected financial changes can still throw you off track. Therefore, it is better to have some investments with high liquidity. You can make a use of these investments for educational purposes or in times of emergency.

Ongoing Advice

Building a relationship with a financial advisor you can trust is vital to achieving your goals. Your financial advisor will guide you to assess your present financial circumstances and frame a comprehensive plan customized for you.

Final Words

The first step in developing your financial plan is to meet with an advisor or expert like Mehul Mathrani. This financial process begins with an analysis of your present financial circumstances, future goals, anticipated changes, and results in your customized plan.

Originally Posted: https://www.allperfectstories.com/financial-planning-your-life/

How to Buy a Car with Bad Credit Score in 2018

Bad credit can ruin a lot of things, including loan application. However, according to a leader Mehul Mathrani it is possible to get a car loan with bad credit in 2018.  Yes, now auto loan seekers with a bad credit score can enter the auto loan process. But they will probably have to pay a higher interest rate instead of lower interest rate that someone with good credit would be paying.

No doubt there are car loans available for people with bad credit score, but you need to act smart when shopping for a bad credit auto loan to make sure you aren’t exploited.

Bad Credit Score

Let’s explore the way of getting financed for easy car loan approval with a bad credit report.

1. Check your credit

You may think you have bad credit because you are making late monthly payments, but it’s necessary to know the exact reason, instead of making decisions based on assumptions.

You can view two of your credit scores and can easily analyze credit report online. Additionally, you will see what components are having the most impact on your scores and credit rating.

When it comes to lenders deciding which interest rate you will receive for your auto loan, your credit score plays a key role. Therefore, it is better if you check your credit from all three major credit bureaus in advance before you begin your car shopping journey. And also track your credit history to see areas you may need to clean up or build credit.

2. Improve your score

As mentioned above, one of the biggest reasons to analyze your credit report is to see what you need to improve. Maybe you find mistakes on your credit reports that, if you get correct, will help boost your credit scores. Try to give yourself at least 30 days to dispute credit report mistakes before you start car shopping and looking for an auto finance company.

If your score isn’t as bad as you imagined, perhaps paying off credit debt, clearing up errors, or taking care of old collection accounts could bump you over that desired 700 thresholds. Delay in the auto finance process to improve your bad credit score and re-establish credit in the meantime may be the best solution and may save you money in the long run.

Improve-Credit-Score

3. Find a dealer who can help you out

If as a buyer you are planning to buy a car but have a credit score that falls below the 500 or 600 range, then it is better if you choose the options for car financing. In case you have decided to get a car through a dealer, you’ll need to search for the right kind of dealer that can handle that kind of loan. A dealer should be someone who possesses good experience and good reputation in the market.

Or you can secure your loan through a bank that has a relationship with the dealer, as they can ask for a favor.

4. Consider getting pre-approval

For those with truly bad credit, Mehul Mathrani recommended getting pre-approval for an auto financing from a bank or financial institution, which could better option for the car shopping process. Basically, the pre-approval process analyzes your income, job stability, credit score, and credit report to evaluate if you are eligible for an auto loan and how much the amount the lender can lend.

Originally Posted: https://www.allperfectstories.com/buy-car-with-bad-credit-score-2018/

Five Points to Consider Before Applying for Personal Loan

Personal-Loans

A Personal loan is some amount of money that you get from banks and financial institutions to fulfil your financial needs without any stress or worries. Every bank and financial institutions have different criteria and rate of interest on personal loans. In the end, you have to repay it in a given period of time with the good rate of interest. It reminds me of a very famous saying “there is no such thing as free lunch.”

However, according to Mehul Mathrani, these are few things you must consider before applying for a personal loan.

 

Interest Rates

As we all know that personal loans are unsecured loans, therefore, they attract a very high-interest rate. Also, because in personal loan, there is no guarantee that the lender will get the amount back as they don’t keep any collateral security for a personal loan. Therefore, it becomes more difficult to obtain personal loan disbursement in comparison of a secured loan. You may either apply for a variable rate or a fixed rate when it comes to choosing the type of loan.

personal-laon

Penalty Charges

In any situation, if you are not able to pay your dues on time, bank or financial institution will charge a heavy penalty on your loan amount. Therefore, you should explore the exact details regarding the penalty that may get levied in case of any such circumstance arising in the future. Also, make sure about the affordability factor of the loan right from the beginning.

Credit History

A loan seeker must have a good credit history, as it considers in the eligibility criteria. Therefore, when you apply for the loan, must check your credit score to make sure if you will get the loan approval or not. Additionally, if there are any pending credit card dues, it is advisable to pay them immediately as this will reflect in your credit history while your application is getting processed.

Hunt for the best deal

As we have mentioned in the beginning, interest rates vary from bank to bank, therefore, it is essential to consider the interest rate while applying for a loan. If you choose a lower interest rate, the cost of borrowing money from the lender will also lesser. Also, do not forget to consider the tenure of the loan. If you want to pay EMI on personal loans for a longer duration, then go for the option in which you will get the flexibility to pay in that manner.

Need or greed?

The intention for which you are applying for the loan is essential to consider. Personal loans are made available for genuine needs which includes marriage, family trip, hospitalization or whether it is taking a personal loan for education. However, if you wish to obtain the amount to invest it in shares or commodities with the motive to generate a higher return by speculating, then it is highly not recommended.

Final Words

Mehul Mathrani advises everyone loan seeker to consider these points before applying for a personal loan.

Originally Posted: https://www.allperfectstories.com/applying-for-personal-loan/

5 Factors to Consider Before Investing in Mutual Funds

Nowadays, almost everyone desire to earn extra income and therefore most people choose different stocks, bonds or other investment plans. According to Mehul Mathrani, in today’s world investing in the mutual fund is one of the best and safest decision. Especially, for those who do not want to take high risk in the investment. However, it is only possible if you invest in mutual funds at the right time.

mutual Funds

Let’s find out what are the factors that decide the best time to invest in Mutual Funds.

Time is Key

Time is vital while making an investment plan. If you are planning to invest for the short term, try out liquid funds or short-term debt funds, where your money would be secure and grow conservatively. Over three years for any investment horizon, choose an equity mutual fund for best returns.

Make Investments Goal-Oriented

According to experts, you must plan your investment on the basis of your goal when you invest in mutual funds. In this way, it will be easy for you to pick the right kind of fund. Some people consider long-term goals such as retirement, while some people consider short-term goals. Therefore, buying or selling a mutual fund should be based on your need and requirement instead of a fund’s popularity or a friend’s recommendation.

Read Fine Prints

Once you have decided to invest in mutual funds, it is advisable to read the fine prints carefully and understand all the expenses, exit load, and any other fees. And do not forget to make a well-research before selecting your fund. If in doubt, go to a mutual fund advisor that will help you in deciding a fund based on your need.

Don’t Go Only By Fund Ratings

Many professionals and investment analyst advise not to follow fund ratings blindly as they fluctuate. Therefore, it is better that you research about a fund’s long-term performance and only after that choose the fund which is suitable for you.

Choose Direct Plan

If you are a knowledgeable investor and know how to manage and pick your funds, then only go for a direct plan. This means purchasing a fund directly from the company without taking help of any intermediary or broker. However, for some people, this may prove tricky as they may end up choosing the wrong fund, but it will help you enjoy the higher returns and a lower expense ratio. In case you’re in doubt, let an expert help you shortlist a regular plan where you will also get such services as a fund dashboard to track your fund performance.

Final Words

So, these are the five factors you must consider before investing in mutual funds. Finance expert and a leader Mehul Mathrani say don’t focus on investing rather focus on becoming an intelligent investor. In the end, only an intelligent investor can create a winning game with the investment.

Have a Successful Investing!