InvestorQ : how to get business loan?
amit pandey made post

how to get business loan?

Answer
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swati Bakhda answered.
1 year ago


A loan is provided only after checking the collateral provided by the applicant. However, a bank can also approve a loan with any collateral security which is basically dependent on borrower’s creditworthiness.
In case of a business loan, you can apply for a loan by either using any of your collateral security which can be any of your asset, personal or commercial. However, in case if you don’t collateral then your profit and loss account statement and Bank account statement can prove helpful. Profit and loss account statement will give an insight into your business to the bank and Bank account so that transaction of your company’s and the personal account can reflect your creditworthiness to repay the amount. For example, If your current account of the business reflects that only 2 months in every year your business seems to go slow, but otherwise it is a profit generating company, then the bank might not ask for any collateral and rather give you an unsecured loan.
However, an unsecured loan is generally possible for a company that has a track record for a few years, but if you want a business loan for a new company or starting a new company then collateral is needed. A venture capitalist can be helpful, as they are wealthy investors who want to invest in an upcoming and promising business idea so that they can gain profit above the normal rate. The main catch with a venture capitalist is that they generally take some stake in the company that is the get some portion of equity ownership in return of the money they provide.