The maximum loan amount varies depending on factors such as the borrower’s creditworthiness, business revenue, and the lender’s policies.
Eligibility criteria typically include factors such as the borrower’s credit score, business revenue, years in operation, and financial stability.
Commonly required documents include business financial statements, tax returns, bank statements, business plans, and proof of ownership.
Interest rates for business loans can be either fixed or floating, depending on the lender’s policies. Rates vary based on factors such as creditworthiness and prevailing market conditions.
Repayment tenures for business loans typically range from one to five years, although longer terms may be available depending on the lender and loan amount.
Collateral requirements vary among lenders and loan types. Some business loans may require collateral, while others may be unsecured, depending on the borrower’s creditworthiness.
While credit score requirements vary among lenders, a higher credit score generally increases the likelihood of loan approval and may result in more favorable terms.
Common types of business loans include term loans, lines of credit, SBA loans, equipment financing, and invoice financing, each tailored to different business needs and purposes.
Business loans can typically be used for various purposes, including working capital, expansion, equipment purchase, inventory financing, and debt consolidation, depending on the lender’s policies.
In the event of non-repayment, the lender may take legal action to recover the outstanding loan amount, which may include seizing collateral or pursuing other collection methods. It’s essential to communicate with the lender and explore alternative repayment options if facing financial difficulties.
