Get A Small Business Loan Up To INR 1 Crore in 3 Days
Get Quick Business Loans with Discounted Processing Fees
Quikrupee is a financial services aggregator that specializes in debt financing and business loans. You can avail a loan of up to INR 1 Crore for your small business in 3 days. Quikrupee now offers 25% cashback on processing fee. Avail this offer by clicking the Grab the Offer button NOW!
Quikrupee vies to complete the missing link in the financial chain pyramid to satisfy the credit and business needs of the self-employed / salaried segment. If you are looking for a fast business loan of high value, you have come to the right place. Quikrupee now offers an attractive cashback of 25% on your processing fee. Multiple business loan applications can be managed and tracked from a single vendor; you won’t have run around banks wasting your time in repeated follow-ups.
How does DEBT FUNDING differ from EQUITY FUNDING
Startups can raise funds for their functioning in two different ways: Debt funding and Equity funding.
Debt funding is another name for a business loan. You borrow a huge sum of money from a bank or a financial institution for a certain duration and pay back at regular intervals with interest. These kinds of loans may be with or without collateral.
In Equity funding, you create new shares of common stock of your company and sell it to investors who provide you with funding to run your business. Since you are selling your common stock, you are also relinquishing a certain percentage of company share and hence control of the decision. The investor will take a cut out of your profits as long as he/she is invested in your business. Certain investors may also provide a definite exit strategy which states that they will exit your company (i.e. sell your shares) after they have earned a desired amount or after the company reaches a certain level of operations, profits, and/or revenue.
From a transactional perspective, business loans often involve disbursement of a certain pre-decided amount at once. Equity may be bought by multiple investors in in multiple rounds. In a business loan transaction, typically two parties are involved – the bank and the borrowing company.
While debt financing requires collateral and a credit history, it also gives you the flexibility of running your business the way you want, as there is no interference by the partners. Also, if you manage to successfully repay the loan, you raise credit-worthiness which softens future borrowing and insurance rates.
Requirements for Debt Funding
Banks usually ask for certain information that helps them asses your ability to repay the loan and your company’s strength to sustain the profits. Some common requirements of the banks are:
- A two year operating history and IT filing reports
- A turnover greater than INR 1 CR
- Loan utilization plan
- Any collateral – in the form of property, shares, MF units, etc
- Third-party or personal guarantee?
Below is a standard list of documents:
- Business plan
- Company policies and bylaws of operation
- Profit & loss statements and balance sheets of the operating years
- Revenue, profit and loss projections
- Resolution by Board of Directors approving the application of loan by your company
Types of Debt Funding
Banks typically offer business loans in two varieties. One being secured loans whereby the borrower must present a guarantee to the bank before availing the loan. This guarantee can be in the form of property, share certificates, mutual fund units, etc. Typically this guarantee or collateral is at least 1.5 – 2 times the original principal borrowed. This is done to cover the adjustments due to inflation. Since these loans are secured by a collateral, the interest rates are lower than unsecured loans and the amount of loan can also be significantly higher.
Unsecured loans, as the name suggests, do not require the borrower to produce any collateral. Due to this, the rates of interest is much higher and the final principal borrowed will also be quite less. This structure allows banks to cover the lack of collateral in the form of higher interest rates.
Sources of Debt Funding
Let’s face it – businesses, no matter how big or small, run on money. Startups particularly need a significantly large amount to setup and get going. Unless you are sitting on a big pile of personal cash, you have to be up on your toes and actively look for investors right from the word go – when you finally arrive at a decision to start up!
Family & Friends – The (al)most informal type of business loan
Family and friends are usually the people closest to your business idea. They have seen you struggle to develop the idea and create it from ground up, they are aware of your journey and sympathize with you. In most cases, they are also aware of and impressed by the idea. This is what makes them a informal (loosely-coupled) type of loan. Their requirement for collateral and repayment terms are often easier to fulfill than other types of business loans.
Despite many factors positive, a large section of entrepreneurs find it tricky to mix business with their family and personal lives. A small dispute has the potential to ruin the friendship or strain your family ties. Hence, it is advised that you choose this type of investment with caution and have the most suitable repayment options laid out in detail in the form a proper financial agreement.
Banks, Micro-lenders, Online Lenders
Startups which have just started off and need quick money for initial requirement such as company or office setup may not able to produce any collateral or company history. Such companies can look to online lenders which often provide the small, lightning fast loans.
Micro-lenders typically provide small, short-duration loans to small businesses and budding startups for their initial requirements. Since they are professional institutions, they often conduct a lengthy due-diligence process as well.
Banks also provide a large business loan for startups. You can avail term loans, lines of credit (regular disbursement of a fixed amount each time a requirement arrives) and mortgages to buy properties. But banks may also look at personal credit history of the owners and partners, along with the company’s detailed operating history. Due to these factors, getting business loans from banks can take up to two to six months’ time.
However, the biggest upside with bank business loans is that being pure debt funding options, they are purely focused on your ability to return the business loans and not how you run the business. You have to repay the loan at fixed intervals, but they do not ask to be a partner in your company or a share of profits when the company gets sold.
Trade Credit is a Big Boon for Small Businesses
When a vendor gives a company a certain period to repay the bill, it’s called “Trade Credit”. The vendor does not ask the company to pay immediately, instead as a gesture of goodwill or as a function of proven track record of on-time payments, the company is given the bill for the services as a “credit”. The idea is very simple – The company doesn’t have the money initially when buying services from the vendor but promises to pay back once the profits start rolling in. So, the company is supposed to pay the bill to the vendor, after credit period is over.
Factoring Companies to the Rescue of Small Businesses
Just like trade credit, this is also a much smaller option for debt financing. When the business has certain customers who have not paid their invoices, their accounts receivable (i.e. bills to be paid by the customers) are paid by a factoring company. If the chosen option is recourse financing, the borrowing business bears the brunt of its customers defaulting on their payments. In case of non-recourse financing, the factoring company takes the loss.
Be Careful When Availing Business Loans
Whether you are a large corporation or a small business, money is what ultimately drives your business! Most small business owners don’t even know where to start when looking for a debt financing provider
When looking to avail business loans, it is important not to jump the gun. Even when you need quick funding, due diligence must be carried out strictly. or else you may miss out on an effective deal.
… What To Look For in a Business Loan
- Experience: A well established business loan provider typically has good relationships with multiple lenders through his numerous years of experience. Look for an experienced provider as they could potentially get you more discounts just by virtue of their strong relationships.
- Fast application process: When getting business loans look for a provider that promises a fast application process. The faster the process the less complicated it will be.
- Reasonable repayment terms: A business loan which has repayment linked to your revenues is best for small businesses as it minimizes the risk of default or missed EMIs.
… Raise a Red Flag When You See A Business Loan Like This
- Inexperienced provider: When the business loan provider is new or inexperienced, chances are their processes are not mature enough. Even a slight mistake could prove to be costly. So, avoid a provider with less experience.
- Complicated application process: Some loan application processes are designed to hide their flaws. So, if the provider is engaging in a lot of superfluous (too-good-to-be-true) marketing strategies, and refuses to clarify or avoid your doubts, it is a sign that something is shady.
- Strict repayment terms: Often banks or financial service providers give some leeway to companies as long as the companies have had better credit history with or outside their bank / institute. So, check with their references as to how their loan repayment panned out and how did the provider respond to any issues in the process.
Quikrupee for Your Business Loans and Debt Funding Requirements
A recent Economic Group SME survey reveals that access to credit has conventionally been one of the biggest challenges for 92% of SMEs in India, despite banks adopting a more liberal outlook in lending to SMEs. Entrepreneurs rarely have time to manage their business entities along with business loan lending process, which can become messy if you have decided to include multiple lending agencies or banks.
Quikrupee vies to complete the missing link in the financial chain pyramid to satisfy the credit and business needs of the self-employed / salaried segment.
Quikrupee Services – in a nutshell
Quikapply – No more hassles of filling multiple forms with different banks, and tracking multiple applications. Submit and track your application online.
Quiksupport – Complete end-to-end support by friendly Quiksupport team.
Quiksanction – You concentrate on your core business, Quikrupee teams follow up with the banks for the process.
Quikguarantee – Your data is always secure with Quikrupee. There will never be any spam or annoying cold calls from us.
Quiksave – When you avail Quikrupee services, you save a considerable amount of money due to preferential rates which can be redirected to core requirements.
Salient Features of Quikrupee Services
Informed Decisions – Research, compare, check eligibility and customize the products.
Complete Support – Hand-holding through borrowing process and assistance through documentation.
Zero Risk – Complete transparency in all transactions.
Preferential Rates – Our entire spectrum of service is available with preferential rates to customers who are also SMEJoinup.com members.
FAQs From Quikrupee
Q1. My startup is very young, I have all the plans ready, I am looking for quick funding. How can I apply and coordinate with multiple banks without losing my mind?
You have come to just the right place. With Quikrupee, you can apply for and track your loan online, Quikrupee’s expert team takes care of any follow ups and negotiations after consultation with you. Unlike other online financial portals, Quikrupee is exclusively developed to help the SMEs avail timely finance using our robust engine and network of lenders.
Some of our salient features are
- Proprietary Credit Profiling mechanism to help assess eligibility
- Algorithm developed for assessment of SME credit score
- Customised credit solutions
Not just that, Quikrupee customers get special preferrential rates from lenders.
Q2. What is the level of software exposure for Quikrupee?
At Quikrupee, we firmly believe that technology opens the door for future. We have a proprietary Credit Profiling mechanism to help assess eligibility. We also have developed our own in-house algorithm for assessment of credit score of SMEs along with an internal engine that associates a list of lenders for an SME based on their credit profile.
Q3. What is the typical savings that your clients have been able to achieve after availing your services?
Since we are able to check the eligibility and SME credit scoring online, the lender spends very less time on profiling the clients. This leads to reduction in turn-around time by almost 50%.
Similarly, the documents can also be submitted online on our portal. Hence, a lot of time is also saved the collection of documents.
Our customers also invariably get a preferential rate either as a reduction in the rate of interest or as a discount in processing fee.
Quikrupee Success Stories
Thanks to Quikrupee, I was able to get my loan at the time of need. – Palaniswamy, (Availed Loan against Property)
My business loan was serviced quickly. All my docs were taken online without hassles. – Mohd Raheez (Availed Business Loan)
I was trying to get a loan through various sources but to no avail. Quikrupee helped me get the loan through their channel partner. I would definitely recommend them. – N. Rajasekaran (Availed Unsecured loan)
Meet the Quikrupee Team
HD Sheriff, CEO
A Business Management professional with over 15 years of combined experience in retail sales and marketing functions in the banking sector & 5 years into managing startups in the networked cash management & international fund accounting space.
Jyotsna Vasudevan – COO
A Cost Accountant and Professional Banker with over 20 years of avid experience in various facets of banking in public & private sector banks including retail, SME and corporate lending space. Held senior positions in retail and SME space in sales, credit underwriting & sanctioning.
Image courtesy: plutofin.com, businessloanwiki.ga,
Connect with Service Provider
Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities