It is not that much easy to get a business loan these days. The Banking system across the world is in the process of framing strict guidelines considering the repercussions created by earlier easy loan policies and experiences from recent financial crisis. One should follow and approach the Bank systematically with all the relevant documentation and proofs. Following are some steps to be followed for easy approval of your business loan proposal.
Gathering relevant information is the first step. You must obtain information on the type of loan you are looking for from available sources at your end. Next, proceed with application process along with good documentation. Bank shall assess your financial status and your ability to repay the loan based on your documents only. If you are approved for loan, you will receive a Facility Offer Letter. After signing on the Terms of Loan you shall receive the loan money. The approved amount of loan will be deposited into your bank account.
That’s not over yet. You have to make proper arrangements for repayment of loan. You need to submit signed empty checks as prescribed by the lending organization and ensure that the installments will be deducted directly from your bank account. Regarding loans to small and medium enterprises, Banks has to supply authenticated copies of all the loan documents executed.
Loans are being considered risky from the side of banks, particularly in the days of financial doldrums across the world. Most of the banks are asking for hundreds of documents and proofs for any kind of loan to be on safe side. If it is business loan, the process is even cumbersome as the amount involves much bigger number than other loans like personal and housing. We shall discuss that in another article.