How to get a business loan?
It will be difficult to access funding as a first timer. But why is it difficult?

It is because new businesses are riskier to lend to. That doesn’t mean it is impossible but you need to be vigilant in preparing the application and taking out time to complete the process.

First thing you need to learn is what exactly it takes to qualify for a small business loan & understanding the process

Check your Credit Score
A good credit score is extremely important for your business & it has a huge impact on business finances as well.

Infact, the credit score will be the most influential factor that business lenders check to qualify your application. Business lenders use the credit score to see your reliability in paying back business debts.

Determine how much funding you need
The next step for you is to determine how much funding you need and how much you can actually afford. For a business loan application, it is very much essential to be able to specify why you need funds and that you can afford the amount of funding. Lenders are more likely to accept the application when you not only specify the need of funds and how you will use them but show them the ability of repaying them back.

Reasons why you would need first-time business loan:

To take advantage of new opportunity
To cover startup costs
To finance initial equipments
To cover payrolls
To pay for business expansion
To finance initial inventory cost
To cover working capital
As long as you will be able to specify how much you need and how and where the fund will be spent, you might cite any of these reasons

How to determine the debt you can afford?
You can calculate your Debt Service Coverage Ratio (DSCR)

DSCR = Cash Flow / Loan Payment

Gather Application for your Loan Application

After determining the loan amount you need and how much you can afford, you need to prepare for gathering personal and business documents that you’ll need for the actual application. You will need greater documentation to show that you’re qualified for the funds

Documentation for Business Loan Application
Basic personal and business information
Statement of purpose
Business bank statements (and sometimes personal bank statements)
Personal and business tax returns
Personal and business credit scores
Balance sheet, income statements, and other business financial documents
Business licenses, permits, contracts, and other legal documents
Resume with relevant management and business experience
Proof of collateral
The Best Options for First-Time Small Business Loans
Now you would have a better sense of what it takes to qualify and prepare to apply for a first-time small business loan.

You can get your business loan at GimBooks . The application is 100% digital and can be applied in a few minutes with very few documents needed like Adhaar card, Pan Card, Bank statement and GST number. The range of Business Loan is from Rs 1,00,000 to Rs 15,00,000. Also, Loans are disbursed very fast like in a single day. And moreover the interest charges are very low between 15-24% only.