How Long Does it Take To Get Approved For a Business Loan?

The answer to your question depends on several factors, such as the type of loan, the lender, and the complexity of your application.

What are the eligibility requirements for a working capital loan?

The eligibility criteria for a working capital loan can vary depending on the lender, but here are some common requirements

What is the difference between a savings account and a money market account?

Certainly! Let’s explore the differences between a savings account and a money market account (MMA)

How do I calculate interest on a savings account?

Certainly! Calculating interest on a savings account involves understanding the growth of your money over time. Let’s break it down

What are the eligibility requirements for a working capital loan?

The eligibility criteria for a working capital loan can vary depending on the lender, but here are some common requirements

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What are the eligibility requirements for a working capital loan?

By Ferdick knight Februari 17, 2024  

The eligibility criteria for a working capital loan can vary depending on the lender, but here are some common requirements:


  1. Applicant’s Age: The borrower should be at least 21 years old when applying for the loan and should not be older than 65 years upon loan maturity.

  2. Nature of Business: Eligibility depends on the nature of the business. It applies to individuals, proprietors, partnership firms, private or public companies, retailers, traders, or any other business owners engaged in service, manufacturing, or trading sectors that require consistent cash flow for working capital.

  3. Business Turnover: The business turnover amount varies based on the chosen lending bank. For instance, if you apply for a Working Capital Loan from HDFC Bank, the loan segments are divided into annual turnover below Rs. 7.5 crore and annual turnover above Rs. 7.5 crore.

  4. Business Vintage: Your business should have been operational for the past 2 years, with profitable financial records.

  5. Business Experience: Most banks require a minimum of 2 years of the same business at the current location.

  6. Financial History: A stable and credible financial history with consistent profits over the years is essential.

  7. Source of Income: Your business income or investment income qualifies as your source of income.

  8. CIBIL Score: If it’s a company, the business’s CIBIL Score should be 700 or above. For sole proprietors, entrepreneurs, or self-employed professionals, their personal score matters.

  9. Financial Capability: The business’s financial capability and the promoter’s ability to repay the loan are critical factors. Profit and loss statements, balance sheets, and income tax returns demonstrate stability and profitability.

  10. Creditworthiness: No loan defaults in the past contribute to creditworthiness.

  11. Ownership or Collateral Worthiness: Ownership of property (residence, office, shop, godown) is considered by banks.

Remember that these criteria may vary slightly among different lenders, so it’s essential to check with the specific institution you’re interested in.


Others Also Read:

  • What is the interest rate for a working capital loan?

  • How much can I borrow with a working capital loan?

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Factor Rate Bad Credit Business Loans

By Ferdick knight Februari 15, 2024  
Factor Rate Bad Credit Business Loans - A factor rate is a way of expressing the cost of a business loan or advance that is not based on an annual percentage rate (APR)1 A factor rate is usually a decimal number, such as 1.2 or 1.5, that is multiplied by the original loan amount to get the total amount owed.

For example, if you borrow $10,000 with a factor rate of 1.3, you will have to pay back $13,000 ($10,000 x 1.3).

Factor rates are often used for short-term loans and merchant cash advances, which are types of financing that provide fast and flexible funding for businesses that have bad credit or need cash quickly.

However, factor rates can also be very expensive and misleading, as they do not reflect the true cost of borrowing over time12 To compare different financing options, it is better to use the APR, which takes into account the interest rate, fees, loan term, and payment frequency.


To convert a factor rate to an APR, you can use this formula:

APR = (Total amount owed / Loan amount - 1) x (365 / Loan term in days) x 100%

For example, if you borrow $10,000 with a factor rate of 1.3 and a loan term of 90 days, the APR would be:

APR = ($13,000 / $10,000 - 1) x (365 / 90) x 100% APR = 0.3 x 4.06 x 100% APR = 121.8%

As you can see, the APR is much higher than the factor rate, and it shows how expensive this type of financing can be.

If you are looking for bad credit business loans, you should be aware of the factor rates and APRs of different lenders and products, and compare them carefully before making a decision You should also look for other factors, such as the loan amount, repayment terms, fees, and eligibility requirements.

Some of the best business loans for bad credit of February 2024 are:
  1. BlueVine: Offers invoice factoring and lines of credit with APRs ranging from 15% to 78%3
  2. Fundbox: Offers lines of credit and term loans with APRs ranging from 10.1% to 79.8%3
  3. Kabbage: Offers lines of credit with APRs ranging from 24% to 99%3
  4. OnDeck: Offers term loans and lines of credit with APRs ranging from 9% to 99%3
  5. StreetShares: Offers term loans, lines of credit, and invoice factoring with APRs ranging from 9% to 40%3

I hope this information helps you understand factor rates and bad credit business loans better. 😊
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