As a Chartered Accountant, you may want to open a business firm of your own instead of being employed under someone. But amassing funds for your startup can be of immense travail. In such a crisis, a CA loan can help you out. Below are three factors you should consider for a CA business loan application.
To apply for startup business loans, one of the first tasks at hand is to define your business goals. Whether you wish to reach out to new customers, venture into sectors out of your niche, or improve products and services for your existing market, you have to convince your lender that your project will be a sure shot success. Your marketing strategies and team’s expertise will be weighed against potential risks to evaluate the sustainability of your plan before you are marked eligible for a loan.
A high credit score is indispensable for approval of startup business loans. A Company Credit Report (CCR) containing particulars regarding your interim cash flows, current income statements, debts, and reimbursements will be provided by the Credit Information Bureau Limited (CIBIL). To check your payback capacity, this CCR will be scrutinized by your lender to compute liquidity, debt-to-equity ratio, operating margin, etc.
Devise a plan that clearly states how much funding you would likely need to reach your targets and for how long you’d need it. Use the latest financial forecast techniques to build your strategy prior to seeking loans.
Because of the number of crucial operations performed by a CA like tax planning, budget forecasting, etc., the job of a CA is of high reputation in India. Fulfill your dreams of having your own CA business firm by applying for a CA business loan today.