Business credit, explained plainly.
Invoice discounting, working capital, credit scores, loan costs and MSME schemes — what a lender looks at, and what to check before you sign.
Written by Kanik Goyal — Founder, Vaanij · B.Com (Hons) · LL.B
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Working capital cycle: how to calculate and shorten it
Inventory days plus receivable days minus payable days tells you how long your cash is locked up. Work out your number, then see how to bring it down.
Read the article ProductsCash credit, overdraft, term loan or invoice discounting?
Each form of business credit is built for a different need. Compare what it funds, the security it needs and how it is repaid before you choose.
Read the article CreditHow lenders assess a small business loan application
Underwriters read your bank statements, GST returns, financials and credit reports to answer one question: will this business repay? Here is what they look at.
Read the article CreditCredit score for business owners: what affects it
Your personal score and your firm’s commercial report both shape a lender’s decision. Learn what drives them, which enquiries count, and the habits that protect them.
Read the article ProductsDocuments you need for a business loan in India
A complete, consistent file speeds up a loan decision more than anything else. Use this checklist of what lenders ask for, and why they ask for it.
Read the article SchemesUdyam registration and MSME classification explained
MSME status depends on investment and turnover together. Udyam registration is free and online, and it opens the door to credit schemes and payment protection.
Read the article SchemesTReDS explained: how MSME suppliers get paid early
On TReDS, financiers bid to pay an MSME’s invoice early once the large buyer accepts it, without recourse to the supplier. Here is the process, cost and limits.
Read the article CostsAPR and the Key Fact Statement: the true cost of a loan
Fees, flat rates and deductions can make a cheap-looking loan expensive. Learn to read the APR and the Key Fact Statement and compare offers on the same basis.
Read the article SchemesCollateral-free business loans and credit guarantee cover
Collateral-free does not mean obligation-free. Understand what you still pledge, how credit guarantee cover works, and what makes an unsecured application stronger.
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