One of the key reasons for a commercial loan application being rejected is poor personal or business credit. Borrowers with unhealthy credit get less favourable payment terms from lenders like higher interest rates and insurance premiums. A business loan or small business loan helps small and medium enterprises serve pressing or reoccurring financial necessities with no issues.
To avail credit from banks and non-banking financial Companies (NBFCs), you ought to have a good credit score. Your credit history determines your CIBIL score. Seeking business credit throughout these juvenile periods is an associate uphill task. Don't expect banks to lend massive sums of cash to you at this stage. To enhance your credit score, you may begin by applying for loans for small businesses from banks and NBFCs. Make sure that you explore these choices for business credit. Other than these, with dedicated start-up funding choices, you'll be able to approach peer-to-peer lenders conjointly. It may well be useful to travel for tie-ups with more than one investor.
Read full info here: FIVE STEPS TO BUILD STRONG CREDIT
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