Every business needs fund to run the show, be it day to day activities, venturing into new markets, increasing production capacity or for up gradation of the existing production units. Sometimes it happens that a considerable amount of fund is blocked in the market and the inflow of the fund is taking time, and it is getting difficult to run the daily business? So what does a business unit do? Shutdown the activities temporarily or cut down the production? Well, that is not a viable solution. It only spoils the goodwill often company in the market. There are many financial institutions and banks in the country which are providing “Business Loan For Old Business” and one should always take advantage of the facility in existence.

Getting The Loans:

The financial institutes and the banks provide loans to existing business houses provided they meet the eligibility criteria and fulfills the norms. These institutions offer company loans to existing proprietorship company, partnership firms, self-employed individuals, retailers, traders, manufacturers, and many other units.

To get a business loan for an existing commerce, the unit has to run for at least three years before the application of the credit. It provides the records needed by the banks and other financial institutions to grant a proper loan.

Some of the institutes give the loan to old business units depending on the turnover, and there is a specific benchmark for the same. It varies from institution to institution. Some even ask for collateral security for providing the loan.

It is evident that when the financial institutes or the banks are fulfilling the business loan requirements, they will expect that the firm has a positive profit after tax and is not a loss-making company. They will also hope that the unit is rated high by the credit bureau and the firm has a favorable credit score.

These days it has become easy to take a business loan and meet the financial needs of the business. Loans are an integral part of the business without blocking the capital or the resources in hand. The situations often get financially tight for all companies, and the temporary shock can always be avoided taking the business loans.

If the credit rating of the business is excellent and the PAT is positive, it is effortless to get loans for the existing company provided the eligibility criteria are fulfilled and the required documents are in order. Depending upon the situation, the financial institution may ask for collateral security or may release loan without it. However, a loan without security attracts more interest.

Overview:

The days of the trader and the businessmen running from pillar to post for arranging funds are over. It has become effortless to get business loans for expansion, buying equipment, doing research and development work and even to meet the daily finances. Taking credit does not mean that the company or the business is in bad shape and it is a myth of the past. Business loans are made by the units to manage the show with adequate funds.