Author: Michael Beulah

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How are Business Loan Approved By Banks

January 18, 2021 | Business | No Comments

Many commercial banks loan money to many companies, individuals and businesses almost every day. Most commercial banks successfully operate because of business lending and loans. Loaning monies to businesses allows them to earn profit. Through this they are building their brand and contribute to the success of the economy.

What Do I Need to Apply For a Business Loan?

The objective of loans to businesses are the following: The loan will provide financial assistance to proprietors of businesses or enterprises with limited capitalization. It also is a compliance to different ordinances and laws implemented in a region. A business with the proper permit to operate are qualified for this types of loan. Do you want to watch a video  on how to apply for bank loans? You can check out this videos in YouTube. Be sure to download an Ad Blocking App for a better viewing experience. https://youtubevanced.com

Businesses like agri-business and services whether it is a single proprietorship, cooperative, partnership or corporation can avail of this financial assistance offered by commercial banks. There are some criteria that banks follow when giving out a financial loan:

  • Businesses should have tangible assets as collateral.
  • Businesses should be duly registered with the appropriate agencies provided by the law.
  • These businesses should be engaged in a business activity within the major sectors of the economy.
  • Here are the common requirements needed by banks when applying for a business loan:
  • Credit application with picture
  • Co-maker’s credit application
  • Registration papers, Business and other permits
  • Documents representing ownership to the property or a contract of lease with the owner of the property or building
  • Income tax returns for at least the past two years
  • Documents of Acceptable collateral.
  • Post dated checks

Some banks when granting business loans will follow substantial policies like the following:

  • All accommodations for this type of loan is subject to existing credit policies.
  • This loans are only allowed to qualified business proprietors with proven credit worthiness in accordance with the existing credit policies.
  • The business should have been existing for at least 5 years.
  • An Interest rate shall apply with this kinds of loans.
  • Depending on the bank, there is a maximum and minimum loanable amount.
  • The bank will set the mode of payment/schemes of payment.
  • Deductions may apply.
  • The applicant is required to submit documents relating to the acceptable collateral offered.
  • The credit records shall be established for clients and evaluated like other credit records.

 

Good reasons to start a business

January 13, 2021 | Business | No Comments

Freedom, independence, passion: there are many good reasons to start your own company.

A bright idea alone is not enough to start a successful company. Anyone who wants to start a company must be zealous and have stamina about their own business idea. Small decision-making aid for everyone who is thinking of starting their own business. You can download video online and get some ideas on how to start a successful business.

 

Reasons to start

Establishing brings independence and freedom

Entrepreneurs make their own decisions and work independently. There is no time clock and no supervisor who decides when the vacation can be taken. Entrepreneurs are their own boss.

 

Founders work with passion

People who work with more passion can work for themselves. It is true that setting up your own company takes a lot of effort, time and energy. But people who work with passion and dedication also know what they get up for in the morning.

 

Anyone who desires to start a business will find support

For beginners, they can get a lot of advice and support. There are startup competitions, advisory services, state funding programs, advisory services, start-up initiatives and mentors who can give tips.

 

Entrepreneurs learn all their lives

In the initial phase, founders either work alone or with a small team. They often take on tasks for which large companies have specialists. In positive terms, they are constantly acquiring new skills that they would never have thought would lie dormant in them.

 

Sometimes a laptop is more enough for your own business

In recent years, it has become easier to organize and start a company due to digitization and networking. IT start-ups in particular can get by with few resources at the beginning. Often your own laptop is enough in the living room.

A good business can be a good retirement plan

If you want to maintain your standard of living, you have to make provision for old age yourself. A well-running company can be a way to secure yourself after your work life.

 

A foundation is not a decision that will last forever

And last but not least, starting a business doesn’t mean being chained to it for the rest of your life. Life can change and in another phase of life, you might prefer to be employed again. A company can also be sold again at some point.

Good Businesses to Start in 2021

December 30, 2020 | Business | No Comments

The year of 2020 had been rocked by numbers of shocking events like the COVID-19 pandemic which havocked every fields of businesses. However, there are also opportunities that come on the way despite the challenges brought by the year. Knowing that, many people are asking for the best businesses that could be a good start up in the year 2021.

List of Good Businesses for 2021

Here are some of the businesses that could be a good way to establish a good year on the coming year of 2021:

1. Social Media Platforms

Because of innovation, social media has been the popular means of showcasing your business. Besides, billion-dollar companies are also present and utilizing this kind of community. What you need to do is to find your niche and create a customized platform for them. It could be in Facebook, TikTok, or Instagram.

2. E-Restaurant Business and Food Delivery Service

Food is the number one consumable products in the world. And, even in the times of pandemic, this industry has not been out of the scene. That’s why opening a business related to this field is a good idea. 

Moreover, because of the COVID-19 scare, many people are now cling on food ordering for home delivery than to eat out for a meal. With the help of social media, most restaurants and food businesses are digitizing their operation and food delivery system.

3. Alcohol Online Selling Business

More and more people now prefer to put up parties and host a small cocktail drinks at home. With that, alcohol selling business is a good idea to start in 2021. You can create your business online selling portal or an alcohol delivery app.

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Tips for young founders

December 25, 2020 | Business | No Comments

Starting a business as a young person is of course very possible today, much sooner than it used to be the case. The entry barriers are lower, especially on the Internet. Nowadays you can build your own business here without large financial investments or loans.

Nevertheless, there are a few things you should pay attention to, because online is also a real business. And since young founders often lack professional experience and know-how, one should be particularly careful and attentive in order to avoid various pitfalls and the resulting financial difficulties. For example, knowing What baby stroller is safe is important should you decide to start a business that caters to baby’s needs.

Few important points to consider

Taking the start-up phase seriously

Often the technical aspect is addressed in the high motivation, but the other aspects of a start-up are neglected. You should avoid that in any case, otherwise it can lead to trouble and bigger problems.

Analyze the market well

Among other things, this includes analyzing the market. A good idea is very tempting, but it may well be that something similar already exists or you can’t find enough potential customers for it.

Fulfill legal requirements

During the formation, the legal requirements that such a formation entail are very important. For most online business start-ups, however, these are limited.

Looking for experienced partners

It is a very good idea to look for experienced partners for your own business. This can be, for example, a tax advisor or a business angel. In any case, you should make up for your own lack of experience and the sometimes still lacking know-how with good partners.

Practicing appearance

A common problem facing potential customers is the external image of young founders. Traditional companies in particular often don’t take young founders seriously. Therefore you should practice to appear confident and convincing.

Make use of independence

As a young founder, you usually don’t have a family of your own and other obligations are also limited. You should take advantage of that and, for example, move to a big city or even go abroad, if that makes sense.

Keeping your own costs low

As already mentioned, a business does not become successful overnight. Of course, the lower your own costs, the better the first phase of low income.