MAKING BUSINESS ‘CREDIT’ABLE
There are multiple financing options available for SMEs to grow their businesses
The business financing landscape is continually changing, with more options available to business owners than ever before. About half to two-thirds of these businesses seek financing from a number of places, from owner investments to non-bank sources. As small businesses continue to face challenges when it comes to gaining access to capital and taking advantage of opportunities to grow, it’s important that they are seeking the right type of financing for their particular needs. There’s been a lot of focus on “alternative” lending recently, but how do business owners know when this is the right option to pursue?
One of the most obvious and common answers is that businesses seek financing when they’re faced with an unexpected opportunity or challenge that requires quick capital.
Talking about the SME’s, have lots of options for accessing capital. Moreover, they often face resistance from traditional options. This sector has been struggling to keep up with market transitions.
A SME require timely and adequate capital infusion through term loans and working capital loans, particularly during the early and growth stages. Historically the MSMEs have relied on following sources for financing their needs
Tab Capital
For MSMEs, TAB Capital provides a wide range of financial solutions based on their diversified business needs. It currently provides loan products like • Machinery/ Equipment Loan, • Merchant Cash Advance – Loan against POS Machine Transactions, • Working Capital Demand Loan – To meet the working capital requirement of MSMEs • Unsecured Business Loans - Multi Purpose Business Loan to serve various financial requirements in the MSME segment. • Loan Against Property (Industrial/Commercial/ Residential)
• Loan to Professionals (CA, CS, Doctors, Architect) The company is always on a hunt to design new products in order to cater to diversified needs. It also provides the facility to give top– up on the loans every 6 months or provide an extended line of credit for their customers.
Talking about the criteria, rules and guidelines to avail the capital CA Abhay Bhutada, Chairperson & MD, TAB Capital highlighted, “At TAB Capital, we focus on certain basic and important criteria like Age of applicant should be in between 21 - 55 years, Business vintage should be more than 2 years & business annual turnover should exceed 15 Lakhs which are imperative in providing the basic approval instead of getting into the hassles of the lengthy approval process”.
TAB Capital analyzes the credit worthiness of a business before approval of loan by understanding below parameters.
Business Model & Scalability, Debt/Equity of Business ,Banking ,Digital & Cash Sales ,Social Check, Credit Bureau check (CIBIL, EQUIFAX, HIGHMARK, EXPERIAN), Business Networth, Educational /Technical Qualification of Applicant
TAB Capital offers multi-purpose Business Loans which is designed as per the business need of Micro, small & Medium Enterprises.
Machinery Loan
Machinery Loan is a tailored financial product which helps MSME’s to raise financefor new & old machinery to take care of expansion and production needs. TAB Capital Limited offers quick Machinery Loan for Micro, medium and small-scale manufacturing units which are in need for urgent capital for buying and upgrading equipment and also for increasing overall productivity.
Unsecured Business Loan
TAB Capital committed to providing unsecured business loans for MSMEs. Every Business has three stages to follow: planning, implementation, and expansion before it attains the maturity of being called as a successful company, and for each stage, an entrepreneur needs financial independence.
“At TAB capital, we work towards providing the financial independence and our customize unsecured small business loan aims to provide the right answer to MSME’s financial problems based on their needs”, Abhay added.
Merchant Cash Advance is a unique offering from TAB Capital Limited which helps Retailers/Traders & Restaurant Owners to convert future POS card swipes into current cash flows.
Retailers, traders, and restaurant owners can avail Merchant Cash Advance, if they accept credit or debit card payment for the daily business transactions. Merchant Cash Advance for small businesses can be used for execution of various business activities and satisfy their short-term operational requirements.
Working Capital Demand Loan
We offer Working Capital Loan for MSMEsthat are tailored to their financial needs and help businesses grab opportunities, take care of immediate needs and also grow to greater heights. The Working Capital Demand Loan is designed impeccably for meeting all requirements right from Inventory Purchases, Equipment Needs, Marketing Opportunities, Short-term capital needs, And more!
Loan against Property
TAB Capital Limited Offers Loan against Property across residential/commercial/industrial properties and MSMEs can now get access to desired amount for taking care of Business goals. Instead of letting their property sit as a dead asset, they can tap into the unused value of the same to obtain swift funding.
Loan to Professional
TAB Capital Limited offers tailor made loans for professionals including chartered accountants, company secretaries, doctors, architects, consultants and other practicing professionals. These loans are aimed at helping professionals grow their practices, buy new properties for setting up offices, remodel and revamp existing offices and also for foraying into new business domains. These unique loans are offered with attractive rates of interest for greater convenience.
Who and How to get the loan?
A fundamental principle of TAB’s digital lending platform
“At TAB Capital, we focus on certain basic and important criteria like Age of applicant should be in between 21 - 55 years, Business vintage should be more than 2 years & business annual turnover should exceed 15 Lakhs which are imperative in providing the basic approval instead of getting into the hassles of the lengthy approval process”
is that anyone with internet access can apply online for a loan and be assessed accordingly.
For MSMEs, the lending process can be a stringent task to follow, so TAB Capital have created a simple digital lending process where a customer can easily apply for a loan, upload required documents online & get disbursement in 2 working days after verification & assessment.
This process remodels the lengthy loan processes into a completely digital solution which is fast and customer- centric and hence beneficial to the borrower since it is automated and streamlined.
Incred Finance
InCred offers a wide suite of products designed with a sharp focus on meeting the varied needs of the SME industry. They offer short term working capital loans, invoice financing (45-60 days), and medium term unsecured loans (24-36 months) and long term secured term loans (up to 10 years).
Incred’s loan products are flexible and can be tailormade to suit the unique requirements and business cycles of each borrower. For example for IT supply chain product, company provide financing both against regular stock and sell model besides providing one-time financing for lumpy tender based business requirements.
Saurabh Jhalaria – CEO, SME Business, InCred said, “We strongly believe in bringing a human approach to lending. Delivery of a superior and seamless customer experience across all touch points is extremely critical for us.”
Talking about the parameters and criteria to get the finance, InCred understand that an inadequate credit