What Are the Documents Required to Get a Business Loan?

An organisation planning to apply for a business loan must be thoroughly aware of the general application process and the documents that need to be provided to the lender. Security is a top concern for any business today, and no enterprise will want to give copies of their ID and financial papers to questionable entities.

Even when they choose to borrow from familiar banks, the hassles of printing and photocopying documents, submitting them to a branch personally or through a reliable employee and then awaiting approval of their SME loan can be tedious. It discourages many MSMEs from approaching traditional financial institutions for funds. “How to get fastest business loan” while also following a secure procedure is a priority for SME and MSME borrowers.

Fortunately, the expectation of getting a quick business loan can now be fulfilled by FinTech lenders. These digitally active NBFCs have an abridged and systematic online application process, and funds on approved applications are provided in less than a week. Furthermore, they offer loans without requiring the borrowers to pledge any security.

FinTechs do need some documents to sanction any loan. However, businesses only need to submit the soft copies with their digital application. The primary documents required for an unsecured working capital loan or any other SME/MSME loan include:

KYC Documents of Business Owner(s) – PAN Card, passport copy or a copy of any other Photo ID that is recognised by the Government of India

Income Tax Returns (ITR) – The processed ITR document copies for the last two years

Goods and Service Tax (GST) Returns – Processed returns for the past year

Bank Statements – For the previous six months

For some particular loans taken to finance the operations of schools, medical clinics, restaurants, franchises, logistics companies and e-commerce sites, the FinTech lender may need documents specific to these verticals.

As an example, a Pvt Ltd company or LLP that seeks merchant cash finance based on the payments made through cards should also submit its card settlement statements for three months preceding the loan application. On the other hand, sole proprietors (Prop) running their own shops, salons or small restaurants can directly submit their KYC documents, IT returns, bank statements and papers that corroborate the identity of their business.

What then, about the security factor here? That indeed is important – a business loan application should only be sent from a secure website that encrypts all information loaded on its servers. FinTech companies with website domain having a lock symbol and https:// prefix are authentic lenders in the credit market.

If your business has been successfully running for almost three years, and you have been complying with the tax laws of India, your chances of fulfilling other eligibility requirements for an unsecured business loan by Capital Float are high. Just gather the soft copies of documents relevant to your enterprise, and by spending less than 15 minutes on the digital application, you can send a request for the loan. You will also be notified of the approval on the same day, and the funds reach your bank account in the next 72 hours.

Apply for Unsecured Business loan

To know more about our loan granting process, feel free to call at 1860 419 0999.

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Getting design and development team on the same page!

What makes or breaks a product team?

Strong design principles are one. A clear, effective roadmap is another. But one of the most important, yet overlooked, aspects of all great product teams, are the relationships between the designers and engineers on your team.

“Truly great products are often a combination of two things: a technical breakthrough and a never-before-seen design it enabled.”

Yet many designers compartmentalise building a product into two distinct parts — design and development. This distinction is one of the most dangerous traps a product team can fall into. When the design is seen as a satellite that orbits engineering, it usually comes crashing back to earth.

The problem is we separate design from implementation. In product design, both these things are inextricably linked. A world with terms such as “design freeze” or “handoff” just won’t cut it.

Truly great products are often a combination of two things: a technical breakthrough and a never-before-seen design it enabled. So it’s essential designers understand the possibilities and restraints of the technology they’re working with before they can properly delve into the design.

Design together

Here’s an example. Let’s say you’re designing a native mobile app. Here are some technical questions you might receive from an engineer that can heavily influence your design decisions:

  • Which framework are we going to use for that home screen chart? If we don’t know the suitable one, we should ask the developer for a suggestion and follow the UI of that framework.
  • How long does it take the API to fetch the data for that list-view? If it’s too long, you’re going to need to do more than place a spinner.
  • The API takes a little too long to load user’s loans. What do we display in the meantime?

Questions such as the above should be asked and addressed as early as possible by discussing with engineers. Involve them in the design process, at the end of the day, it’s the developer that actually builds the website or app.

Even though you’re the designer, the developer knows best when it comes to certain other aspects of the user experience (perceived performance, page loading times, miscellaneous features that will crash the browser).

Turning design into reality

Being a great designer requires you to be empathetic, not only to users or clients but also to your engineers. Let’s not forget that all of us are working for the same goal of building a kickass product!

So here are key pointers to turn your design into pixel perfect reality:

1. (Atomic) Design System:

Design System is a list of all the elements you are using in a project. It helps you maintain consistency in the design. Want to know how we built our design system? Take look at this article:

getting-design-and-development-team-on-the-same-page


2. Mockups:

We all have been generating & sharing UI mocks comfortably for many years now. But there are few things which will help us avoid confusion.

Artboard sizes:

Nowadays we have a wide range of devices. Not just web but our mobile platforms also has varying screen sizes! It’s important to decide how will our product look on all those screens? Define the breakpoints and keep in mind the media queries that developers are going to use. Talk with your developer if you don’t know what it is.

Breakpoints and responsive layouts:

Upload an artwork to Zeplin or Google Gallery or InVision with the responsive design (according to the breakpoints that you’ve already set), in other words, share how your design looks in different screen resolutions and devices.

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You think it‘s clear that the design will be horizontally centred at higher resolutions, such as 1920 x 1080 pixels, but developers are not mind-readers.

Tools for designers:

We have developed a Sketch plugin which allows you to quickly generate guides for a selected element and helps you achieve web development’s famous grid (column) behaviour in Sketch. The plugin was featured on SketchApp website and newsletter.

Tools for designers

File names and versioning:

The name of the screen should simply describe its function. If you’re not yet using a version control solution for your designs, you probably should.

Make sure to use consistent casing when naming your screens, whether it’s ‘camelCasing’ or ‘Sentence casing’ or ‘lower casing’ etc.

File names and versioning

We also add 3 number to give the sequence to mockups.

3. Interactions:

Make a flow:  Putting the mockups together is only half the work done. You’d need to stitch the screens together based on the flow using Hotspots (or just make an Interactive Prototype). It helps the product manager understand how the user journey is panning out and helps the developer plan her/his approach to code.

Figure out the fidelity: Not every screen has to be fleshed out with high fidelity prototypes. Few screens could simply be static with explanatory comments, few could get away with platform-specific standard interaction patterns and few might require those custom prototypes. There’s no blanket rule for all the screens, so discuss with your developer & plan accordingly.

Suggested Tools: Overflow, Marvel, InVision, Google Gallery, Principle or craft it directly in code!

4. Specs and assets:

Today with products like Zeplin, Google Gallery, Marvel Handoff or InVision’s Inspect sharing style guides and specifications has never been easy.

Assets and resources:

Exporting assets for the different platform is easy but your developer is gonna love you if you are giving them optimised assets! Use optimisation tools like Kraken, ImageOptim, Optimage or TinyPNG.

Even better if you use SVG.

When you use SVG for your icons or illustrations, you don’t need to worry about devices with different pixel densities. Another advantage is that SVG graphics use up less space, and can be compressed effectively by gzip on the server side.

Think twice before you send an asset larger than 1MB to a developer! Don’t be lazy and send the job off to a developer; you are responsible for the visual quality of the project. Check out this image optimisation guide by Google.

Assets also include custom fonts and copy for your vernacular Apps.

Final Checklist:

1. Don’t be too visionary.The ideas must work.

2. Work with real data in mind and think about a “scalable design”. If there is a long text, what happens? how does it work in other languages? and if in the future will be adding more items to the menu, what happens?

3. Empty states: if you don’t know what they are, find out!

4. Explain the reason for your choices about the layout, colors and interactions.

5. If you speak the language of developers, you can get respect. If you have a good knowledge of programming languages (HTML, CSS, Java, PHP, JavaScript, C #, Objective-C or Swift) you can be one of them and they listen to you with pleasure.

6. Never forget the user.

Conclusion

Although you shouldn’t need another reason to be considerate of your fellow teammates (especially developers, who traditionally, designers find it hard to see eye-to-eye with), using these tips will help you, as a designer, just as much as they help everybody else. Cutting corners to save time only creates speed bumps further down the road, so add a little care and some foresight with your design choices.

Tap the ? button if you care about your developer (and/or you found this article useful).

Have any tips of your own? Let us know ?

Source:- Capital Float’s Medium Blog

Oct 24, 2018

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How You Can Improve Your Cash Flows With Supply Chain Finance?

SMEs are sometimes cash-crunched to provide credit to their customers. These customers often ask for 30-60-90 day credit after raising an invoice. Due to the absence of negotiating power, SMEs are often arm-twisted into accepting delays in payment. The gap in cash flows resulting from delayed receipts affects the performance of a company and its ability to run smoothly.

Such situations can now be easily avoided by using Supply Chain Finance, which allows a business to raise the necessary funds by using its receivables. Read on to know more about how supply chain financing can be a powerful tool for boosting the cash flows of your business.

When is Supply Chain Invoicing Needed?

Businesses offer a credit period to customers after executing an order and raising an invoice, since this helps them establish a stronger relationship with customers, build customer loyalty and receive recurring orders. While on one hand, SMEs need to deal with delayed payments from clients, they do not have the negotiating power to delay payments to their suppliers. Moreover, they need funds to make overhead payments and provide salaries to their employees. Even the most profitable SMEs may face cash crunches due to the time lag between having to incur expenses and actually receiving payments from clients.

If not fulfilled in time, this shortage of funds can weaken the smooth functioning of the business. This is where supply chain invoicing for small businesses comes to the rescue. The invoices are like an asset for a business, and can be used to overcome cash flow issues. Supply chain invoicing uses the accounts receivables of a business as a means to increase liquidity.

Invoice Factoring Versus Supply Chain Invoicing

There are two ways in which a business can use its invoices to infuse cash into its operations: invoice factoring and supply chain invoicing. With invoice factoring, a business sells its outstanding invoices, often at a significant discount, to a third party. Supply chain invoicing allows a business to use its outstanding invoices as collateral to secure a loan. Often businesses do not prefer invoice factoring since they do not like the idea of a third party contacting their clients to recover an invoice. This can have a bad impact on the relationship between an SME and its customers.

Supply Chain Invoicing for Small Business 

If a small business has outstanding invoices, it can use these to inject cash into its operations. Capital Float’s Supply Chain Finance product does exactly that. The best news is that the benefits do not end there.

Fast Loans: For any business, especially an SME, timing of receiving funds is critical. Using cutting-edge technology, FinTech companies like Capital Float are able to meet the most urgent working capital needs of small businesses. In fact, the Supply Chain Finance product uses data-driven criteria to approve a loan within hours and disburse the sanctioned funds within just three days.

Convenient Application: One does not need to visit a financial institution and stand in any queues to apply for supply chain invoicing from a FinTech lender. One can apply online, at any time and from anywhere. With such options available, an SME can say goodbye to the hassles of obtaining a loan from a traditional bank. The application process for Supply Chain Finance is so smooth and easy that one can complete the application form even while traveling from home to the workplace. What’s more, Capital Float has a mobile app that makes the application process even easier. The complete process involves filling up a form and uploading the required documents, which takes less than ten minutes.

High Loan Amounts: An SME can receive as much as ₹1 crore to inject into its business. From as low as ₹1 lakh to as high as ₹1 crore can be secured to be used as working capital or to fund the growth of a business. An SME can borrow as much as 90% of the value of the outstanding invoices. One can use the supply chain finance calculator to get an idea of the amount the business can borrow.

Flexible Loan Tenure: With Supply Chain Finance, one can have a repayment plan between 30 – 180 days. The greatest feature is the one time bullet repayment option, which allows a business to repay the loan in one go, thus reducing the interest burden. Else, the business can repay the loan in easy monthly instalments.

Minimum Documentation: In order to Apply for Supply Chain Finance, a business would need digital copies of only a few documents. These include audited financials for the past couple of years, VAT returns and bank documents for the past six months, KYC documents of the business owner and the SME, invoices for the last three months and sales ledger for the last six months.

Do you raise invoices and then need to wait weeks or months for clients to pay? Did you know your cash requirements could be met with supply chain financing?

Now a business can secure the required financing without pledging any assets. The invoices are all that a business needs to infuse cash immediately into its operations. Revolutionary products like Capital Float’s Supply Chain Finance have helped solve the cash flow problems of many businesses. Moreover, being technology driven, there is complete transparency in the fees for this service. There are no hidden costs in acquiring this loan product.

Oct 24, 2018

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The most successful ones go over the top

Must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system, and expound the actual teachings of the great explorer of the truth, the master-builder of human happiness.

Oct 24, 2018