The retailers have to opt for the various small or big loans to manage the business retail outlet. The retailers need to avail the business loans for variety of purpose such as to buy the furniture or fixtures, to purchase the inventory, to maintain the regular cash flow for the business, to maintain the regular functioning of the business etc.
However, before applying for the loans, there are certain things which are to be kept in mind as far as the retailer is concerned. The careful analysis and assessment can reap the real benefits of the business loans for retailers. The retailers have to check the various deal that are available in the market, repayment options, monthly instalment plans etc. The comparative analysis has to be carried out among the deals offered before opting for the option. We, at Finance Buddha, are giving you following quick tips, which you should know as a retailer to go ahead for the business loan.
- The Credit Ratings:-
The credit ratings play a significant role in terms of availing the business loan. If you and your credit history are healthy, then the retailer can easily get the sanctioning of the loan. If you hold a low credit rating or low credit score then there are high chances of the rejection of the loan. For many retailers, it gets difficult to maintain the good CIBIL score. Hence, it is always advisable to improve the credit score before applying for the loan. If you have any dues, such as pending EMI, or pending loan etc., then the retailer must pay off the same to improvise the score, which can balance the track record of the finances.
- Identification of the exact amount of loan:-
It is always necessary for the borrower to identify the exact amount of loan, which is required. As a business person, the retailer should know the various costs associated with business and the capital amount that is required. The retailer or the borrower should apply for the amount that is necessarily required and not more than required. For Example, if a retailer needs 50,000 rupees to build an eating area, then he should not apply for 100,000 rupees as a business loan.
- Identification of the loan objective:-
The purpose or the objective of the loan should be as clear as crystal. The retailer must know the clarified purpose of the loan and the retailer must ensure that the loan amount should be utilized for the identified purpose. For example, some retailer may apply for the loan for the marketing purpose or the advertising purpose, such as a restaurant owner may want to purchase new display racks, or new restaurant booths, catalogues etc. some retailer may apply for the business loan in order to purchase the inventory or maintain the inventory. Some retailers may apply for the business loan for expansion.
- Determining the plan of action to repay the loan:-
Once, the retailer avail the loan, the exact plan of action should be determined to meet the business requirement. At the same time, the retailer should carefully take care to utilize the funds. Also, the retailer should ensure that any of the monthly instalments should not be missed. The financial planning should be done in such a manner that the loan availed should be utilized for the proper objective and the repayment also is taken care. The monthly payment of the instalments reduce the burden of the retailer slowly but steadily. The timely payment of the instalments improves the credit rating and CIBIL score as well.
- Finance Buddha – The best platform to avail business loan for retailers
Finance Buddha, is a one stop solution for variety of deals in finance industry that includes loan facility as well. The business loan is one of the same. The business loan, which we provide is a valuable option that is offered to the retailers at an affordable rates, that is the fuel for them to expand and grow their businesses. Not only that but, it also helps to meet the everyday expensed of the business. We provide the continuous assistance to our customers and we keep our executives up to date with the information that can be helpful for our esteemed clients.
It is important to note that borrowed loan amount is utilized appropriately by keeping the credit history and current situation in mind, understanding the expected returns and with the proper identification of loan objective and capital.
Business Loans for Retailers:: What You Need to Know https://t.co/2MQcLfI7TW
— Amrita Agarwal (@InvestorAmrita) June 28, 2017