Top 7 Reasons Why Lenders Reject Business Loan Applications

1
What is the typical interest rate on a business
loan?
2
The Basics of Business Loan

• A business loan is a quick solution to meet
  financial obstacles in business. A business at
  every point of sustainment and development needs
  funds. It can be for infrastructure, development,
  expansion, projects, working capital, and labor.
  Start-ups and small businesses are not into too
  much revenue and they need some source of
  funding. That is when a business loan comes into
  play. You can have a hassle-free and burden-free
  business loan with a low rate of interest. There
  are various ways in which you can try to get a
  low business loan interest rate. This will reduce
  your EMI for the month as well as keep the total
  cost of the loan low.

3
What is the typical business loan interest rate?

• A business loan comes with an additional interest
  rate that is paid along with the principal
  amount. This rate is subject to various factors,
  like income, credit score, business stability,
  and the rest of the financial institutions. It is
  not a fixed component and will keep changing as
  you compare it with other financial institutions.
  A good rate of interest is attained when the risk
  of repayment is low. It is easy to manage the low
  EMI with a low business loan interest rate.

4
Factors affecting the rate of interest

• Business revenue A business that generates a
  good amount of revenue will always get a low
  business loan interest rate. A stable revenue
  means low risk, and then the rate of interest is
  also the best as compared with other rates. If
  you want a low rate, show the positive cash flow
  of your business to the loan provider. It will
  help in negotiations for a better rate.

5
Income

• Business stability Business stability and the
  market presence will be checked to offer a rate
  of interest. If you need a low business loan
  interest rate, you need to show some stability
  and the initiative that you are working to grow.
• Business credit score The credit score of a
  business will be checked before a loan provider
  decides the rate of interest. If your business is
  new and has not come up with enough credit, your
  personal credit score will be checked. Business
  owners will be required to show their credit
  score. A low business loan interest rate will
  help you with an affordable loan and make
  borrowing easy.

6
Clix Capital Services Private Limited

• Address 4th Floor, Kailash Building, Kasturba
  Gandhi Marg, Connaught Place, New Delhi-110001
• Call us 1800 200 9898
• Email us hello_at_clix.capital
• Website https//www.clix.capital/business-loan-ca
  lculator/

7
(No Transcript)