Each business depends on money to survive and thrive in the cut world competition of today. If an opportunity comes knocking and there is no money to invest, it is time to look at lending institutes willing to finance your business. But before you sign the dotted line with the first lender that you come across, it is important to understand certain factors. There are other ways to manage capital too such as through Venture capital, borrowings from friends and family, credit cards etc. You can even opt for Collateral Free Loans, at low interest and which offer easy repayment with the facility of prepayment are ideal but may not be possible. But, before you apply for a business loan you must ask yourself the following:
What are your needs?
Do you need a loan to invest in a latest technology or in a piece of land? Knowing and understanding the needs of your organisation will help you decide the loan amount you need.
What are your options available for Finance?
Will you choose a business loan or a VC. You may have to pay a monthly installment with a bank, but the VC may lay claim to 1/3rd of your business.
How do you plan the repayment?
This is something you have to plan in advance because the penalty on missing an EMI can be quite high.
Influx of steady finance is necessary for your business.If you are interested in more please read here:
Things to Consider Before Applying for Business Finance
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.