Securing a business loan can be a game-changer for entrepreneurs and business owners looking to expand their operations, manage cash flow, or invest in new opportunities. However, qualifying for a business loan often requires a strong credit score and a well-prepared financial profile. For Indian readers, this article provides effective strategies to boost your credit score and improve your chances of qualifying for a Bajaj Finserv Business Loan. We will also discuss the role of a GST calculator in managing your business finances.
Understanding the importance of a good credit score
A credit score is a numerical representation of your creditworthiness, based on your credit history. Lenders use this score to assess the risk of lending to you. In India, CIBIL scores range from 300 to 900, with a score above 750 considered excellent. To avail of a Bajaj Finserv Business Loan, you just need a credit score of 685 or above. A good credit score can significantly increase your chances of securing a business loan with favourable terms.
Strategies to boost your credit score
Timely repayment of dues: One of the most critical factors in maintaining a high credit score is timely repayment of all your financial obligations. Ensure that you pay your credit card bills, loan EMIs, and other dues on or before the due date.
Reduce credit utilisation ratio: Aim to keep your credit utilisation ratio below 30%. This means using less than 30% of your available credit limit. If your credit card limits are too low, consider requesting an increase from your bank. Alternatively, spread your expenses across multiple cards to keep individual utilisation ratios low.
Maintain a diverse credit mix: Having a mix of credit types, such as credit cards, personal loans, and business loans, can positively impact your credit score. It demonstrates your ability to manage different types of credit responsibly.
Monitor your credit report: Regularly reviewing your credit report can help you identify and rectify any errors that might be affecting your score.
Settle outstanding debts: Paying off any outstanding debts can significantly boost your credit score. If you have high-interest debt, consider consolidating it with a personal loan at a lower interest rate. This can make repayment more manageable and improve your credit profile.
Using a GST calculator for better financial management
The Bajaj Finserv GST Calculator is a user-friendly tool that simplifies the process of calculating GST liabilities. With just a few clicks, you can accurately determine the GST payable on transactions, ensuring compliance with tax regulations and better financial management. Using a GST calculator is straightforward. You just have to follow these steps to calculate:
Choose GST Inclusive or GST Exclusive.
Input the original amount.
Select the applicable GST rate.
Click on ‘Calculate’ to view the total GST amount and Pre-GST/Post-GST figures according to your original requirement.
Advantages of business loans for GST payments
While GST calculators streamline tax management, unforeseen shifts in market conditions or business activities can strain your working capital, posing challenges for timely tax payments. In such situations, business loans offer vital financial support, providing a crucial cushion to manage cash flow fluctuations. Here are several reasons to consider a Bajaj Finserv Business Loan:
1. Higher loan amounts: Bajaj Finserv Business Loan offers financing of up to Rs. 55 lakh, ensuring adequate funding for your business requirements.
2. Competitive interest rates: Bajaj Finance provides business loans at attractive interest rates, ensuring optimal value for your investment.
3. Flexible repayment options: Enjoy flexible repayment terms with Bajaj Finserv Business Loans, offering tenures of up to 96 months to tailor the repayment schedule to your business needs.
4. Minimal documentation: Bajaj Finance simplifies the loan application process with minimal documentation requirements, facilitating quick and hassle-free access to funds.
5. Quick disbursal: Benefit from expedited disbursal of business loans by Bajaj Finance, ensuring prompt access to funds for your business operations.
Business loans serve as a lifeline for entrepreneurs navigating tax complexities and financial uncertainties. With repayment periods extending up to 8 years and adaptable terms, Bajaj Finserv Business Loan empowers you to maintain financial stability, ensure punctual tax payments, and sustain operational continuity in challenging times.
By combining the efficiency of GST calculators with the financial backing of business loans, you can navigate the evolving business landscape with resilience.
Conclusion
Boosting your credit score and effectively managing your business finances are crucial steps towards qualifying for a business loan. By implementing strategies such as timely repayment of dues, reducing credit utilisation, maintaining a diverse credit mix, and using tools like a GST calculator, you can improve your financial profile and increase your chances of securing a business loan. With careful planning and financial discipline, you can achieve your business goals and ensure long-term success. To apply, download the Bajaj Finserv App today.