In the fast-paced world of business, securing funding quickly can make all the difference when it comes to achieving business success. The business loan disbursement process can, at times, be slow and unmanageable. This can cause delays and setbacks for businesses that need funding. But there are numerous factors involved in the process of applying for a business loan and their impact on the disbursement of credit.
With the right approach, it is possible to accelerate the business loan disbursement process and get funding in a quick and hassle-free manner. In this article, we will outline the steps to be taken to get faster business loan disbursements.Learn more about Shriram Finance’s business loans today!
Key Highlights
- For many businesses, securing funding quickly can make all the difference when it comes to achieving business success.
- When preparing to apply for a business loan, business owners can facilitate the business loan disbursement process by preparing all the required documentation including preparing a detailed business plan.
- Business owners can also increase their chances of getting a business loan sanctioned by improving their credit scores by making payments on time.
- Communicating clearly with the lender and following up with the business loan disbursement can also ensure that any delays can be swiftly avoided.
Get Faster Business Loan Disbursements
When preparing for a business loan, here are 9 steps that business owners can take to facilitate the business loan disbursement process:
1. Prepare All the Relevant Documents
Before applying for a business loan, it is essential to prepare all the required documentation. This includes financial statements, tax returns, profit-and-loss statements and any other relevant documents that lenders will need to evaluate a business loan application. By gathering all the required documents beforehand, borrowers can show the lender a level of preparedness and the ability to make repayments. This will work towards getting a business loan quicker. It can also reduce the number of credit enquiries, speed up the business loan disbursement process and lessen the likelihood of delays.
2. Find The Right Lender
Not all lenders follow the same business loan disbursement process. Some lenders have a more streamlined process and can disburse funds more quickly than others. When choosing a lender, it is important to conduct thorough research and find a lender that has a track record of fast loan disbursements. Shriram Finance business loans have fast and reliable loan disbursals. This includes the option of applying for Shriram Finance instant online business loans.
3. Eligibility Criteria
Carefully assess the eligibility criteria before applying for a business loan. Every lender has set specific eligibility criteria to ensure the loan is offered to borrowers who are capable of repaying the loan amount. The eligibility criteria are for both the business owners and the business. The chances of approval and disbursement will increase if borrowers take the time to make sure that the eligibility criteria are met. Shriram Finance's eligibility criteria for business loans include different types of businesses that have been in operation for more than 3 years.
4. Understand the Exact Needs of the Business
Every business has a different set of challenges and requirements. Understanding the exact needs of a business can help in selecting the right type of business loan. Some of the areas in which businesses require funds include working capital, marketing, hiring, purchasing new equipment, upgrading new technology, buying vehicles and more. Based on the specific needs of the business, there are different business loans offered by Shriram Finance to assist business owners with specific business-related needs.
5. Communicate with the Lender
Clear communication with the lender regarding the purpose of the business loan is crucial to ensuring a smooth and speedy business loan disbursement process. Borrowers should make sure to provide all the information the lender needs and be available to answer any questions that may arise. Additionally, it is important to ask the lender about loan disbursement timelines, interest rates, EMIs and any steps that can be taken to speed up the process. Calculate the interest rate for business loans by using the Shriram Finance business loan EMI calculator for fast results.
6. Prepare a Business Plan
A business plan is essential when applying for a business loan. The plan should include details about the business, its target market, competition, financial projections and how the business loan amount will be used. The business plan should also cover how the loan will help the business expand, increase profitability and make repayments on time. To prepare a business plan, it is important to conduct detailed research and include up-to-date calculations on costs and revenue.
7. Improve Credit Scores
The credit score of the business plays a crucial role in determining the approval of the loan and the interest rate. A high credit score is generally an indicator of a trustworthy borrower, and the lender offers such borrowers business loans with lower interest rates. A lower credit score indicates a higher risk, thereby attracting higher interest rates. In the case of a new business, the credit score of the business owner is also considered. So, before applying for a loan, check the credit score of the business and the business owner and take steps to improve it, if necessary. This may include paying off debts, discussing errors on the credit report and ensuring timely bill payments.
8. Apply Online
Online applications and online loan disbursements make the business loan disbursement process, as well as the application process, easier for both borrowers and lenders. Online applications are a convenient method for borrowers to apply for business loans. Using this process, borrowers need to provide personal details and business-related details and complete a verification process over the phone or online. Once this verification process is complete, the business loan will be disbursed. This also benefits lenders, who make the disbursement of credit through a cashless method, where the loan amount gets credited to the borrower’s bank account directly.
9. Follow Up
After submitting the business loan application, borrowers should follow up with the lender regularly to ensure the business loan disbursement process is moving forward. Frequently doing so will indicate to the borrower if there is anything that needs to be updated or provided. By following up with the business loan disbursement, the borrower can stay on top of the process and anticipate when the funds can begin to be used for the growth of the business.
Summary
Securing funding quickly is essential to the success of a business. By following the 9 steps mentioned, business owners can expedite the business loan disbursement process and receive the funding they need quickly and efficiently.
Before applying for a business loan, borrowers should prepare all the required documentation, select the right type of business loan, communicate with the lender, follow up regularly and take extra steps to improve their chances of getting the business loan, such as improving their credit score.
With these strategies, business owners can take control of the business loan disbursement process and receive the finance required for the business at the right time. Apply now for a Shriram Finance business loan and get quick business loan disbursements!
FAQs
1. What is a business loan disbursement?
A business loan disbursement is the process of receiving funding from a lender after a business loan application has been approved.
2. What types of businesses can apply for Shriram Finance business loans?
Individuals who are professionals, business owners or self-employed may apply. Regarding businesses, partnership or proprietorship firms, private or public limited companies are eligible for Shriram Finance business loans.
3. Is it possible to receive a business loan disbursement without collateral?
Yes, it is possible to receive a business loan disbursement without collateral, but this will depend on the creditworthiness of the borrower, the loan amount and other lender requirements.
4. What is the business stability requirement for Shriram Finance’s business loans?
At the time of application, the business must have been in operation for a minimum of 3 years.
5. Are there any fees associated with a business loan disbursement?
Shriram Finance’s business loans have processing fees that start at 2% and closure charges between 3% and 6% (after 6 months).
