6 Easy ways to keep your Credit Score Eligible for Business Loans
| || | submitted by /u/DigitalWC
As a small business owner in India, you probably know that keeping a sound credit score is integral to securing a business loan. This is because it tells the lender how trustworthy you are. A high credit score indicates that you pose minimal risk to the lender. So, getting a business loan approval would be a breeze, provided you meet the other standard requirements of the lender – such as annual revenue and overall business experience.
A low credit score, on the other hand, will make it very difficult to get an unsecured business loan, even if you meet or exceed the other requirements.
Exactly, what is a good credit score?
The credit score scale ranges from 300-900. Anything above 750 puts you in good stead to secure a small business loan in India.
How can you check your credit score?
In India, there are six primary credit bureaus to perform credit assessments. They are CRISIL, CIBIL, ICRA, Equifax, CRIF High Mark, and Experian. You can log into any of their websites and check your credit score, before you apply for a small business financing loan.
What can you do if your credit score is low?
A good credit score is the first thing a lender looks for in your business loan application. It is a measure of your ability to clear your debts on time, based on your past transactions. A poor credit score or the lack of one severely dent your chances of seeing the stamp of approval on your business loan application form.
But it is not the end of the road. Even if your present credit score does not cross the threshold mark, there are ways you can rely on to improve and maintain it.
Let us look at 6 of the most important ways:
1. Keep Regular Tabs on Your Credit Score
Many people make the cardinal mistake of checking their credit score right before they are in need of easy small business loans. This might not give them enough time to deal with a negative remark on their credit score report. On the other hand, checking your credit score periodically – once every 4 or 6 months – will give you ample time to take the necessary steps to counter situations like these, much before applying for a finance for business.
Also, there is a misconception that checking your credit score affects your rating. The reality is when you check your credit score, it is considered a ‘soft inquiry’. Unlike a ‘hard inquiry’, a soft inquiry does not affect your credit score and is not visible to lenders.
2. Pay ALL Your Debits Timely (even the ones you consider small or insignificant)
Your unpaid debts – credit card bills, EMIs – can be a major roadblock to your application for finance for a business. Any payment defaults will drag your credit score down. Be it a cash crunch scenario or a case of missing the due date, you will eventually lose out on getting a small business loan.
So to avoid such scenarios, ensure that you set reminders for all your monthly payments. You can turn to technology such as mobile phone applications to assist you in this regard. As far as cash crunch scenarios are concerned, effective budgeting beforehand can help you stay out of it.
3. Avoid Simultaneous Loan Applications
Applying for small business financing loans to multiple lenders in a short time span reflects poorly on your credit score. In such cases, your credit score report will throw up multiple “hard inquiries” – inquiries made by lenders, which will adversely affect your credit score. To a prospective lender, you will come across as a credit hungry person.
Multiple business loan applications can also indicate that your debt burden may increase in the future – a red flag for lenders.
4. Be Wary of Joint Loan Applications
To increase the chances of a business loan application being approved, many turn to joint loan applications for business capital loans. Although this method does improve your chances, what you may miss is a possibility that your co-applicant makes a mistake leading to a default in payment. This will affect your chances of getting small business loans online.
5. Keep an Eye on Your Credit Card Utilisation
For all your credit cards, you have to adhere to one simple rule – do not allow your card utilization to breach 30% of the total credit card limit. This will keep your credit scores stable. A high credit utilization limit can also indicate the possibility of a looming debt burden. If your credit utilization is high, take steps to lower it. Be financially disciplined and avoid using your credit card for all your purchases. Excessive usage allows the lender to look at your spending habits, something best kept to yourself.
A tip – Ask your credit card company to alert you if you are closing in on the utilization limit.
6. Take A Loan
At first glance, this may seem counterproductive. But, it is actually a very effective way to boost your credit score. This is especially handy if you don’t have a credit score at all. Remember –having no credit history doesn’t qualify you as a good candidate to receive a quick business loan. This is because the lender will have no idea if you can repay on time.
So, take an easy business loan an unsecured business loan is a better option if you don’t want to risk a mortgage. Pay your installments on time, and if you can, try to close the business loan early. This will help you build your credit score.
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|(Published: Sat, 24 Aug 2019 01:47:00 -0700)|
5 must-dos after your business is funded
| || | submitted by /u/DigitalWC
Starting your own business has never been a cake walk. But receiving business loan for new business (finally!) makes it all worth the efforts. Toss the confetti. You’ve reached the START line. Now you’ve the power and the tools to take further steps and embark on a journey of running a successful business.
What comes next is a mix of business fundamentals that can spring you up to the winning podium. Say hi to these five.
Pen your plans
Ideally, you should have your plan ready much before you seek business loan funding. If not, it is never too late to chalk it out – because without a plan, it is merely a dream. You just need an outline of business objectives, strategies, sales plan, marketing approaches and more. At the same time, it is also important to not be married to a plan. Businesses often witness that a best-laid plan can be thrown in a trash bin, even after receiving adequate start-up loan for new business. The key is to gauge how long to stay with the plan and be ready with plan B.
Value your people
Train, trust and treat – are the three golden words to follow when you manage your people.
Train them well to do their jobs
Even if you’ve recruited experienced professionals, who have been in a similar role, in their previous stints – training is the first step. Knowing how you want them to handle their jobs makes them feel more competent, increasingly empowered and proud of their contribution.
Trust your team.
Don't be a control freak. Delegate tasks effectively and you will get more and better then you expect. Parallelly, set up a structure to allow your employees to contact you without interfering in your own schedule.
Treat them to a reward.
Ignore National Employee Appreciation Day because employee recognition knows no calendar. Make it an important part of your culture all year long to applaud your employees when they are least expecting it.
Market it right
It would have been nice if an ‘Open’ sign on the front door or a website that has finally gone live could fetch you customers. But life is not that easy. Marketing yourself needs a smart tactic to get spotted in the big, bad crowd. It is important to make potential customers aware of something they may not possess and engage them enough so that they listen to your pitch. Remember, without an impactful, efficient and memorable marketing effort, nobody is going to reach out to you out of the blue.
Impress and engage your customers.
Imagine how you would like to be treated and treat your customers a tad better. Your customers are people and not a mere number or a means to an end. They have a personality, preference and the power to be with you or not. So if you add value to their association with you, you can be sure that you’ve built a strong and lasting customer relationship.
De-clutter your business
When you’re fairly settled in your business, relook at every element that shapes it. Be it an employee that is not adding value, a customer who’s draining your resources, or equipment, documents, furniture that no one uses anymore – remove anything that does not make your workspace happier, healthier or more productive. Don’t forget to count-in the mental clutter within your office space and inside your head.So, when you attain new heights in your business, come back to these vital points. Mentally put the puzzle together to see how all these small pieces add up to your larger goals. And if you need to fund your bigger dreams, reach out to Tribe 3 for easy business loans in India.
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|(Published: Mon, 29 Jul 2019 06:22:35 -0700)|
All season ideas to season-proof your business
| || | submitted by /u/DigitalWC
The world revolves around the seasons. And business loans are not insulated in any way. Seasonality affects a major section of businesses. Simply put, an ice-cream business will experience an uptick in summer and a slug in winter; while, it will be quite the opposite for a woollen apparel business.
Just because your business is slow doesn’t mean you have to slow down with it. All you’ve to do is apply smart practices to stay profitable – during low periods or even during complete lulls.
Just master these super impactful tricks to navigate seasonal fluctuations smoothly.
STRATEGIZE: Prep up for the peak season
"Measure twice, cut once" is an old adage that still rings true. Take advantage of the descent to prepare for the peak season. Learn from the last season’s performance of your business. Concretize the reasons behind your success to determine what strategies to continue. Nail down the reasons why you should handle a few things differently. Welcome the season already in your mind so you know what to avoid when your business actually starts to pick up.
REDUCE: Avoid unnecessary expenditures
Seasonal businesses not only have peaks and valleys in terms of sales but also in terms of expenses. Relook at every element that forms your business. In case of a retail business, if the footfalls in your store have quietened, bring down the number of your on-floor staff. Or analyze your per hour sales reports and hang-up the CLOSED sign a little earlier than during the busy season. Lull season also doubles up as a sieve to retain the best you have – from inventory to talent and let go of the redundant elements.
DIVERSIFY: Build alternative income streams.
Look up for ways to bring money in during the off-season and create a bulwark against industry-wide slumps. Though it may look like a diversion from the core business, it will ultimately assist your prime business to counteract the off-season. Find ways to widen your business offerings. For instance, can you sell related or complementary products? Explore the needs of your customer during the off-season, and try to fulfil them. It gives you the double benefit of retaining your loyal clientele as well.
One point of caution: Don't let your focus on the alternative stream overtake your goals of the primary business.
CONNECT: Communication is always in season
During the lull-period, when your competitors are in a quiet mode, make your move. Your audience is just as accessible during the off-season as during its peak. Get in touch with your customers and keep your business on top of their minds throughout the year. Create a buzz by engaging your clients with blogs and social media. Churn up good content for your communication channels. It’s a great way to turn one-time clients into loyal ones.
FORESEE: Save more during busy times
Go by the adage, ‘Make hay while the sun shines’ Make it a habit to set aside a little capital every month for the winter days. Aim to have enough funds in the bank to pay for your expenses when the sales dip. If you act smartly, you will need a minimum amount to keep your business on its feet.
ACCEPT: Even this will pass
Seasons will come and seasons will go. Seasonal fluctuation in your business is a reality and acknowledging it might help you deal with the low times better. Think of better ways to manage your stress. You can also look at the quiet times as a well- deserved break after a power-packed performance during the season.
Your business may be seasonal, but your commitment to it should not be. Apply these tips and find ways to thrive all year round. If you need a financial push, get in touch with Tribe3 for a collateral free business loan.
visit us : https://www.tribe3.com/?utm_source=reddit
|(Published: Mon, 22 Jul 2019 05:21:17 -0700)|
Smart ways to utilize funding like a pro
| || | submitted by /u/DigitalWC
‘Your business loan is approved’ – these are the words every entrepreneur yearns to hear. But often, the most challenging times begin right at this moment. While your mind is brimming with amazing ideas to make the most of every penny you’ve received from your business finance loan, we suggest you take a chill-pill and mull over the following questions.
Before you even think of a planning how to put the bucks where your mouth is …Chalk-out your repayment plan
Wondering why repayment has come right at the beginning? Because you should think about your present, your recent future and also your far-away future. As you already know, late or missed EMI payments for your business loan in India can damage your credit score and may pose as a road-block when you borrow money in the future. Set up an auto debit as if it were a password to open the door to your future.
With that one vital point ticked, move on to…
Secure the funds in a separate account
If you really wish to utilize the funds in the wisest manner, pretend that the money isn’t there. Safeguard it by keeping it in an account that’s not used for regular expenses or purchases. It is observed that if you have to transfer funds from one account to the other, belonging to different banks, one thinks hard and thus, makes an informed decision. Just transfer necessary funds to your primary account only when you need it. This will also keep overspending of your business loan funding under control.
Next, gear up to achieve the hero objective of applying for a small business loan
Get going on your business plan
If business expansion is on your mind, take steady and wise steps. Don’t push too big chunks of funds from your business loan too quickly. For instance, choose renting over buying. It will save up on maintenance costs and avoidable expenditures born out of purchasing equipment needed for a specific time span. Also, control the urge to flaunt expensive business cards, marketing collaterals or over-the-top inventory. Just focus on what is actually needed, till real revenue heaps up.
While you are focusing on the big budget, bigger dream …
Keep an eye on petty expenditures
Often, the smallest of holes lead to biggest leakages. So, ensure that you keep accurate track of how much goes out of your pocket from your business loan finance, and where. These can quickly pile up as a big chunk of outflow and impact your financial projections. Keep a note of the tiny business expenses and review them to cut corners and save-up on precious funds. After all, a rupee saved is a rupee earned.
Receiving funds is the end of the business loan application process. But is the beginning of a growth-oriented future for your business. Just apply smart and thoughtful ideas to take a step ahead towards your goals and also ensure that you’re cushioned enough.
Start your journey right away. Get in touch with Tribe3 for small business loans in India that fit your business.
|(Published: Thu, 18 Jul 2019 01:20:53 -0700)|
8 Ways to Make Women Entrepreneurs Fly Higher
| || | submitted by /u/DigitalWC
In a 2018 Global Entrepreneurialism Report conducted by BNP Paribas, India had the highest percentage of successful women entrepreneurs. Yet, Indian business women face challenges that only they know best. Here are 8 practical tips to help women entrepreneurs flourish:
Today’s activities, planned yesterday
Women are naturally good planners and can make time for things which can appear when least expected, such as needing an instant business loan. Yet, it is best to not leave planning to the last minute. Anticipate likely scenarios, action all plans and ensure a backup plan too.
Outsourcing, outpacing, outstanding
A woman can’t work full-time, manage home, play mom AND have a social life. Hence it is vital to pick critical tasks, and outsource others. This can free up time to do more meaningful things. Even at work, it makes sense to delegate to responsible team members and give time to more important issues.
Female entrepreneurs have a busy routine, every day. But me-time must take first priority, no matter how unimaginable it may seem. Spend at least 30 minutes a day on yourself, take a long shower, listen to good music, or take a nap. After all, the happier the leader, the better the business will run.
Work discipline goes a long way
In any home business, it can be easy to work around the clock. It is tempting to push to exceed typical business hours. But following a reasonable schedule is far wiser. Work set hours, and then give time to family or self. Be consistent and set boundaries in professional life to avoid overwork.
It’s ok to ask for help
For many women entrepreneurs, the support system of family and friends is precious. Hence turning to a business partner or colleague always helps. This includes family, friends, and your support system. So, if you want a loan to start business, you can even seek help to apply for a new business loan online.
Create a kid-friendly environment
Imagine if there was no need to choose between kids and careers. Many businesses can start with loan to start business, with ease and flexibility. Or by accommodating a playroom at home by taking a business loan in India without security. This can enable businesswomen be involved in their child’s lives, even during their work hours.
Women entrepreneurs need encouragement and support to start a business with ideas that resonate with their abilities, interests and skills. Peer-to-peer learning platforms and associations help women to interact with like-minded leaders, who over a period of time evolve as a strong support system.
Come one, come all
As pillars of families for centuries, women bring people together. As entrepreneurs, they encourage healthy discussions amongst diverse teams, boosting morale and confidence of members. As a business owner, you should aspire to become an inspiration to other women and give each other a chance to flourish. For women, steps like taking a business loan for new business is a great step forward, but running it is a whole different ball game. A few thoughtful ways can help them drive closer to their dream.
|(Published: Tue, 16 Jul 2019 04:26:30 -0700)|
Internet of Things
| || | submitted by /u/DigitalWC
The world is talking about Internet of Things (IOT), workplace or outside everyone is intrigued with this new phenomenon. So what is Internet of Things exactly and why are people so intrigued?
IOT can be defined as a network of devices like cars, home appliances and other items embedded with electronics, software, sensors, actuators and connectivity which enables these objects to connect with each other and exchange data. Each object is unique and interconnected within the same internet infrastructure with other devices.
In simple terms, IOT is the concept of connecting multiple devices under a common internet infrastructure so they can be controlled remotely with little to none manual intervention. From everyday objects like your TV, air conditioner, light bulbs, cell phones to hi-tech machinery in factories almost all can be embedded with software and sensors and controlled automatically using IOT.
Gartner, an analyst firm predicts that by 2020 there will over 26 billion devices that could be integrated using IOT. This very clearly suggests that most of our daily objects at work and home will be integrated with IOT making our lives very comforting. IOT devices have the capability of sharing data with each other, thus creating a lot of data about the choices, likes and dislikes of an individual. This can help simplify our lives as a lot of our everyday decisions or choices will be made by these devices automatically. For example; your car may send notifications on your cellphone when it requires servicing or something needs repairing, or on a hot day you can set the air conditioner to cool of your home while you are leaving from your work place.
These are simple examples of what large feats are possible once IOT comes in full force. IOT will bring about a lot of changes not just at home but in the overall environment as a whole. Homes, factories, farms, manufacturing units, service providers all that can be connected will be. And this will have a very strong impact on our lives. Automation, reductions in wastage, energy savings and many other such benefits will result in efficient, clean and smart cities and reduce costs and losses on a huge scale.
With so many positives IOT is not only intriguing but also much awaited. However, another aspect that has a serious impact on us with IOT coming in is personal privacy and security. Do we really want so many connected devices sharing our personal information freely to our service providers? How much privacy are we willing to compromise for IOT? With nations always worried about national safety and terrorism do we actually want so many devices collecting our everyday life information and making it openly available? And what about hacking – with IOT being so huge and everything connected a simple breach may result in huge losses. SECURITY is the biggest concern when it comes to IOT and protocols need to be established and followed very strictly if we are to fully enjoy this life changing concept of IOT.
Discussions on IOT have been going on throughout the globe for many years and the positives and challenges of more and more devices joining under IOT needs to be thought upon. For now all we can do is try to understand more and more about IOT and how it will impact our lives in the near future.
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|(Published: Wed, 10 Jul 2019 22:18:36 -0700)|
E-Learning - The way ahead
| submitted by /u/DigitalWC
With the advent of technology E-learning has quickly become an integral part of the training industry. Business, education institutions and professionals are now migrating towards e-learning from the traditional classroom training. Apart from the obvious benefits of being flexible and not having to spend excess time and expenses on travel E-Learning also has many other benefits over the traditional training methods. Below mentioned are some of the advantages of E-learning:
Less expensive to produce, with soft wares and applications like Trainers often you can create your own training courses without incurring much cost
It’s self –paced, most e-learning programs can be studied as and when the learner is free. The training courses can be created in small modules so the learner can focus, learn and move ahead as per his convenience
It moves faster, with e-learning the learner himself is in charge of the training ,this helps him move the training at a faster pace as he can skip parts of the course which he already knows and focus on the parts he actually needs training on
It’s consistent, e-learning eliminates the problem of different trainers speaking different content on same subject. This is especially important and quite crucial in company based training
Easily accessible, with smartphones and tablets accessing online training programs has become very convenient. Learners can easily log in their online training courses from anywhere and at any time
Easily updated, online training programs can be easily updated as they only require the updated content to be uploaded on to the servers. This additionally saves cost on reprinting manuals and retaining instructors
Increased Retention, e-learning courses can lead to increased retention and better grasp of the subject as e-learning uses multiple formats like images, video, audio, quizzes, interactions and so on to reinforce the message of the training
With constant progress in technology, E-learning platforms are quickly moving up in the world as well. Micro learning, Gamification are a just a couple of new platforms that are coming up for E-learning, more on that next time.
|(Published: Fri, 07 Jun 2019 06:27:54 -0700)|
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