What You Need to Know About a Small Business Loan Application


What is Small Business Loan Application?

At some point of time in your business you wish to expand it with new product line, new employees, new location, new machinery, inventory management, warehousing etc. It is thrilling but also stressful because you may not have enough cash reserves to copeup the expansion. This situation demands for small business loan– a cash infusion that pays for itself inclusive of interest, with the new opportunities and extra income it allows you to create. Lender provides loan to small businesses for various purposes. The requirements vary business to business generally it is less restrictive which enables the small business to secure their funds. The borrower may get benefit of incentives provided by the small business loan, which could minimize expenses for the business.

Before applying for a small business loan it is important to be prepared for its application process. Though every bank has its own requirements and procedures but many documents are obligatory across lenders.Whether you are seeking a loan to commence a new business or already run a successful business, the requirement of documents doesn’t differ much. However, the supporting criteria might be different. Not all lenders ask for the same information. Some pieces of information they could request include a plan for how the money will be used, your credit history and a verification of your income and assets.

Common slip-ups the entrepreneurs make when submitting documentation are providing incomplete tax returns (often lacking the required schedules) and incomplete or wrong personal financial statements.

Both small and large Banks often have similar lending criteria.  Many big banks refuse the startup loans request because small business owner fail to provide 3 years’ worth of financial data.  In such circumstances, smaller, regional banks and credit unions may be more promising.  Even though it can be easier to obtain a loan from an alternative lender, you still have to provide them with an array of personal, business and financial information0.

Both the banks and the non-bank lenders have pros and cons but the question is how do you decide which is the right one for you? Let’s discuss them separately

 Benefits of opting for a Non-Bank lender?

  • Competitive rates- Non banking institution offer very competitive rates andcan also be a cheaper option comparatively
  • Flexibility- They often have flexible lending criteria,with which the credit rating is on the low side
  • They have low set up and ongoing costs.
  • They often understand your specific needs and requirements and offer the solution
  • Personalized customer service and variety of niche loan products to suit individual requirements like apparel, optician, pharmacies, groceries, salons etc.

Benefits of opting for a Bank lender?

  • Generally Banks are more recognizedand established financial institutions and hold the majority of the market when it comes to mortgages.
  • Ease of access- Many of us find it easier to manage all the finances under one roof, but you should always do market research as you may find better deal which save your time and cost in ling run


Neogrowth as an option for small business loan:

Neogrowth offers an innovative loan product highly suited for the Retail and SME businesses. NeoGrowth gives loans against future credit card and debit card sales to retailers. The repayment is based on the business cycles and there is no fixed EMI.

Neogrowth simplifies the small business loan application process-

  • Key Eligibility Criteria
    • Business operations of > 6 months
    • Average monthly sales over INR 2 lacs per month
  • Documentation requirements:
    • Last 6 months bank statement (showing card payment settlement/remittances from marketplaces)
    • PAN Card ( business)
    • Address proof ( Residential & business) – Passport, Voter’s id, rent agreement, Adhaar card
    • VAT certificate of the business


How Neogrowth is different from others:

Neogrowth understands your requirement and following points separates from others:

Flexible Repayment Tenure

  • Based on merchant’s average card sales/ online sales in the past, NeoGrowth forecasts a projected timeline for repayment of the lump sum amount.
  • No penal charges for any tenure extension

Partnership Model

  • No fixed EMI repayment schedule
  • Repayment dependent on the volume of business in a month
  • The repayment is automatic and flexible

Hassle Free loan disbursement

  • The merchant would never need to visit NeoGrowth office. NeoGrowth’s sales team comes to the merchant’s assistance at his doorstep
  • Easy and simple paper work
  • NeoGrowth believes in minimum documentation only to oversee the current state of business.

Pre-closure facility

  • Merchant has the option of pre-closure at any stage without any penal charges


Post By NeoGrowth Credit – Business Loans specially created for Retailers & Online Sellers

For more Information – email us on digital@neogrowth.in

Or Give Missed Call @ 08080861166


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