Small and medium sized industries play a major role in strengthening our economy. Their role has also been well recognized by the banking sector. But even after being crucial actors, they often run out of finances and remain under served. There are many small and medium sized industries which often need finances to run their businesses. In such situations, SME’s can opt for SME finance funding wherein the capital for various industries is supplied through the business finance market in various forms. Some of common forms of it are:
However, to help these SME’s grow nowadays there are many business finance companies which offer loans to them that too on very attractive rates. Ranging from as low as 35,000 Rs to as high as 1 Crore; these finance firms make sure that you never run out of your finances in smooth running of your business. Committed to serve in the best possible financial way, there are few things which one should always consider about these firms before actually lending money from them. These points of consideration are:
· Check their authenticity
The very first and foremost yet very essential point to check before applying for a loan from any finance firm is their authenticity. Check their all the necessary papers of authenticity before lending money from them. Remember, not all finance firms that offer attractive loan deal are authentic. Every year, many finance companies are blacklisted from the market for conducting fraudster with their clients. So, make sure that your finance company is functioning on fair grounds.
· Go through their complete process
The next important thing to consider is their process of lending money. Many finance companies claim to give away instant loans but wait and check that whether they are doing the right paper work or not? Remember, it is very important for a finance company to maintain proper bank statements, Vat return papers and other all basic company details before lending loan. And if your finance company is not maintaining a proper record of all this then it time to change your decision.
· Count on their features
A good finance firm is not only the one that instant approves your loan application. There are many other features also that can make them a better lender than other. Some of the most attracting features to lookout for in a finance firm are:
o Fair interest rates
Offering loans on fair interest rates that have been specifically designed to meet the need of SMEs can actually help you to manage your finances.
From providing flexibility in loan amount to the payment tenure and mode of repayment can help the SME to take a risk of borrowing money.
o Collateral free offering
Nothing can beat the advantage of having a mortgage free loan. And if you find a finance company offering this feature, then don’t forget to consider it.