How to get best deals on your business loan application

Of late there has been a lot of technological advancement in the way lenders evaluate applications for business loans. A bulk of the focus has been to use technology to assess the business income of the applicant. There have been several innovations using technologies like big data and machine learning in the recent years.

Like all previous technological innovations, financial services have been early adopters in these areas as well. Now lenders have started using alternate data and social media profiles to build a more comprehensive view of the applicant for a business loan. In India, lenders have always been struggling with the quality of data available for credit assessment for a business loan. So, here are few tips, with which applicants for a business loan can ensure that a potential lender can get a better understanding of their business which can result in, not only faster turnaround on the business loan but can also lead to lower interest rates.

1. Provide documents regarding your business loan income like your balance sheet and profit and loss statement. In case of documents, the more the merrier.

2. As far as possible provide realistic assessments of your business incomes. As a thumb rule, overstating any facts will only delay the decisions.

3. Give the lenders access to alternative sources of your data for example your mobile phone data can be a very rich source, which the lenders can use for arriving at a quick decision on your loan application.

4. If you are able to offer a guarantor for your loan, then a lender will definitely consider your application much more favourably.

With these few simple steps, the chances of a business loan application getting approved with a low interest rate improve significantly.

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