In a world of working for others, there are those who take that brave step of working for themselves, of starting their own business. We at HNB Finance understand and support your dreams as you pursue your passion!
With a range of loans that are customised with new business owners in mind, loans like the Swashakthi and Abhilasha are available to choose from. Here’s what you need to know before applying for the right loan for you.
Understand Clearly the Need for the Loan
This may seem very straight forward, however there are many things to consider for a start-up. There are initial costs like location deposits, inventory, machinery costs if relevant, etc. Then there are ongoing costs such as rent, tax, salaries etc. When applying for finance it is imperative that you are clear on your expenditure so that you know the exact loan amount to apply for to get you started and keep you going until your business takes off.
Getting finance for a start-up business is difficult because there is not much information to go on for the lender to have a guarantee. Therefore, it is imperative that you get the necessary documentation in order.
Prepare a Business Plan
A well-written business plan is a key document to have for a start-up. Your business plan should have financial as well as qualitative information. Financial information should include future projections, such as future sales, profits, income, cash flow etc. Qualitative information should include goals and the impact and contribution your business will have on the market you’re in. You are confident in your dream, convince us of the same.
Register your Business
Registering your business is a key factor when applying for finance. A registered business means that you have officially filed your business with the authorities, and you have all the certifications, licenses and permits to operate your business.
Draw Up the Necessary Documentation
Business loan documents may vary from lender to lender, however there are some basic documents that every lender will require. These include bank statements, income statements, resume, financial projections etc.
Do You Qualify for a Loan?
When applying for a loan for a startup, it is imperative that your personal credit rating is at a good level, this will be assessed by the lender. If your credit rating is not great, take steps to get it to a good level. This will go a long way to helping your loan get approved. Another thing to consider is any prior business experience that you may have. If you have a few years’ experience, a lender will consider this as a positive point. Further check your annual/monthly revenue and cash flow. This is required to show that you are able to settle your loan interest by the lender and to ensure you can handle the loan payments.
Choose the Right Loan for You
Depending on the type of business you are hoping to start and the requirements that you have, the loan type will differ. At HNB Finance, we have a range of loans that is tailored to suit Small Scale Enterprises (SSEs) and Small to Medium Enterprises (SMEs).
Small Scale Enterprises (SSE)
This loan aims to provide urgent working capital to entrepreneurs. It is very straightforward in nature and provides quick accessibility to cash.
This loan is aimed towards male and female entrepreneurs who require greater flexibility and larger credit facilities to set up their business. It’s a community geared loan that aims to promote and support startups.
This loan is designed to sustain the financial requirements of savings account holders as well as Diriya customers who might need further funds to help expand their business.
Small to Medium Enterprises (SME)
This loan is tailored towards SMEs that are looking to expand and grow their business with minimum hassle.
All HNB Finance loans have doorstep service and trained individuals are readily available to help our entrepreneurs with all questions and queries to ensure a smooth process on your way to making your dream a reality.