India currently ranks third when it comes to the number of start-ups, according to a recent report by NASSCOM. This growth will continue to increase in the coming times. Despite the increasing numbers what cannot be ruled out is that funding will be crucial be it today or in the future.
If you are considering funding your venture idea, then you are not alone for nearly every entrepreneur requires it. There are a number of financial institutions including NBFCs (Non-Banking Financial Companies) which provide funding in the form of working capital in the business loans. The process is easy and the interest rates are one of the best in the market.
Here are thus some of the important pointers which you must remember before applying for a working capital loan –
Consider your Requirements
Assess your business requirements and then find out what is the amount which you require to take your business to the next stage. At the same time take stock of the various pitfalls which you may encounter in the process of scaling your business idea. Irrespective of the amount, make sure that you do not over-borrow as it can lead to debt if you are unable to return back the loan.
Compare the Lenders
There are wide range of lenders who are available in the market. Various aspects pertaining to the working capital being offered will vary from one lender to the other. Some of these factors include the amount which will be sanctioned, the interest rate, the tenure of repayment, and most importantly the eligibility criteria. Compare these aspects of various lenders to choose the one best suited for your needs.
Just because a certain lender is advertising a certain amount of business loan does not mean that you will get that very same amount. This is because the amount which is disbursed varies based on the eligibility criteria. So check the eligibility criteria of every lender before you apply.