It is an understood fact that you will need to invest money so that you can earn money. Business loans are easier to get in Chennai these days, as you do not have to deal with a bank anymore, you can simply get in touch with financial institutions such as TN Finance and other to fulfill your loan requirement to start-up or fund your small business.
These are the most important 10 points to remember for small business loans:

1. The financial requirement and the business plan: You will have to find out how much is it that the business requires as an investment to proper proceedings. Always have a plan in mind or payback with the profits earned.
2. Security, collateral or guarantor: Financial institutions do not need a collateral or guarantor in Chennai if it is a check based finance or small personal loans.
3. How soon do you need the loan: If you would be in need of a loan two months from now, you need to start with the process immediately. TN Finance has a much fast loan processing system, if you have less time, they are the right people to get in touch with.
4. Which financial institution should you choose: Always choose an institution that charges you less interest, no upfront or pre-closure fees and has a flexible repayment system.
5. Availability of required documents: There are certain documents you will need to provide and they are;
   • OD sanction letter and PD cheques
   • Address proof, ID proof for you and your business.
   • Income Tax returns details for you and your business for the last 2 years
   • Bank statements for a minimum of 6 months.
6. Credit Score and financial status of your business: The credit score of your business might not be checked if it is a start-up. In this case the owner’s credit history is checked. Under no condition should you or your business be in an insolvent status or bankrupt.
7. Details of Insurance and other finance: Banks ask new businesses to insure the business and the owner in case not already done so. There would be fine prints saying that on the death of the owner or the business, the amount payable should go to the bank. You must check for these details when you apply for the loan or get the insurance done.
8. Past financial details: If you had taken any loans in the past, you must all of them paid off or paying them on time. You will have to show copies of the past returns and other details.
9. Future ratios agreement: There are some key ratios kept by the companies, these are; current ratio, debt to equity within certain defined limits, and quick ratio. Your financial condition should not fall below these.
10. Details on Accounts: Your accounts should be clear and there should be no fraud involved what-so- ever. Your credit accounts, banking accounts and payment history of your loans will be checked. Also your account receivables and payables have to be provided including sales, payments and aging.