Your business growth will surely depend on your financial partner to a certain extent. Whether you have just started your venture or are already exploring the new heights of success, the need of a financial partner will always remain intact. This post will list out tips to choose the right financial partner for your business.
While you are looking for a financial partner, you would have to look beyond the money factor. Of course, your financial partner should be worthy enough so as to help you in getting the business loan in India, but there are other things as well.
Finance is one of the strongest pillars of any business. It does not only matter if the company is liquid, but there are many other things that a company needs to become successful. Thus, choosing the right banks or company as a financial partner, that can support you throughout your business, becomes very essential. Here is how you should choose them.
Look for Online Marketplace
The first step is to look for the right online marketplace that has all the banks and financial companies in one place. This will make your job a whole lot easier. There are quite a few banks ready to provide your company with the funding you need. But it can be time-consuming and be intimidating to go through each of these banks separately before you choose one. Look for a marketplace that not only lets you compare various products offered by financial institutions but also helps you in choosing the right one and applying too.
Make a choice between a Bank and NBFC
This is another decision that you have to take before you start narrowing your search. Doing this, will help you sort out the list of banks and companies further. NBFCs and Banks have certain advantages and disadvantages. For instance, banks are governed by RBI rules strictly whereas NBFCs are regulated to a certain extent. Hence the interest rates offered by banks are more controlled than NBFCs. However, banks have more stringent requirements in terms of documentations as compared to banks. Take a decision wisely here.
The next step is to start comparing between the ones you have shortlisted. There are a number of factors you should look for when choosing a bank or NBFC as your financial partner. First is surely the rate of interest charged; the lower, the better, but don’t make it the only criterion. Look for other things too; for instance, time taken to disburse the loan, prepayment penalty, late payment charges, credit limit provided, etc.
Choose the right partner
On the basis of comparison, choose the right bank or company as your financial partner. Look at long term relationship to make sure you have the right financial partner by your side. However, make sure that you at least have shortlisted a few options before you start talking to the bank or company directly.
Choosing a financial partner to get a business loan in India can be quite tough. But, if you have chosen wisely and maintained a good relationship throughout, the right financial partner can help you in many ways to make sure you reach new heights in your business.