Business Loans India : Business Credit From HSBC

Business loans can be defined as money lent for a specified amount of time at a specific interest rate to a specific person or people that operate a business or plan to operate a business. This definition is very broad, but so are the various types of loans available to business people. Deciding on which type of business loan that you and your company will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a “personal” loan. This can be a very risky endeavor, mixing business loans with personal loans, however, often times it is the only available means for first time business owners.

One of the first things personal business owners need to do is establish business credit. Business credit can help you get a business only loan without using your personal credit. Establishing business credit can be done by:

1.) Opening up a business credit card account and paying it in full.

2.) Buying equipment and supplies from companies that will report good standing to the business credit bureaus.

3.) Having a good business plan with potential earnings, letters of intent, and any type of customer contracts already laid out.

All of these types of endeavors can help in receiving a business loan. Often times, financial institutions require in-depth business plans, be prepared to spend days working on just the certification paperwork prior to applying for a business loan. A business only loan can be obtained in the business name without use of personal credit as long as the business can justify the loan amount and the ability to pay it back.

There are several different types of business loans available, ranging from those secured with collateral, non-secure loans, which are based upon the credit worthiness of the applicant, and even government loans for small business ventures, women and minorities. Government loans are those loans secured by the government; in most instances these loans are available when the business or owner can prove that the community will prosper based upon the business at hand. For the most part, government loans are based upon personal credit.

The basis for which you may need or require a business loan may vary. Some of the most common business loans available to business owners are:

-Acquisitions or a loan to acquire an existing business

-Inventory loans

-Account Receivable Loans

-Working Capital Loans which converts a companies assets into working capital

-Equipment Leasing

-Commercial Property loans

-Warehouse financing

-International business loans

-Franchise loans

Information about Business Credit From HSBC

Features & Benefits

Get an amount suited to your needs
Business Credit is available up to Rs. 35 lakhs.

Provide minimal security
No security required for Business Credit up to Rs. 15 lakhs. For Business Credit above Rs. 15 lakh and up to Rs. 35 lakhs, provide only 25% margin in the form of an HSBC Fixed Deposit under lien with us.

Pay interest only on the amount utilized

Business Credit works like an overdraft and is available like a limit on your current account. Interest is charged only on the actual amount utilized.


Easy repayment

The minimum amount due every month is 5% of the outstanding balance. This can be withdrawn in the next month after deduction of interest.


Simple documentation

Unlike cash credit facilities where you need to submit documents every month, only a one-time submission of the documents is required under Business Credit.

Speedy disbursal

Get the Business Credit into your current account within days of the submission of complete documents and security margin, if applicable.


Enjoy the special treatment from HSBC

If you are an HSBC customer for 6 months or more, you are entitled to a special relationship discount on the processing fee.

Eligibility
Business Credit is offered to the following type of concernsBusiness Credit is offered to the following type of concerns

* Sole Proprietorships
* Partnerships
* Private Limited Companies

Income requirements

* Net Income of the concern should be greater than Rs. 150,000 p. a. for Business Credit upto Rs. 15 Lakhs and greater than Rs.300,000 p.a. for Business Credit above Rs. 15 lakhs and upto Rs. 35 lakhs
* A maximum of two incomes of the partners / directors holding a minimum of 25% stake each can be clubbed to the income of the concern

Age of the guarantor (wherever personal guarantee is applicable)
* Minimum age of the guarantor to be 21 years
* Maximum age of the guarantor to be 65 years at the time of the loan maturity

Sole Proprietorship
Proof of identity of the Sole Proprietorship Firm (any one of the following):

* Sales tax / VAT /Service tax / Excise registration OR
* Registration under Shops and Establishment Act OR
* PAN ID / IT return of the concern OR
* Water / Electricity / Municipal tax bill in the name of the concern OR
* MAPIN card in the name of the concern

Proof of individual identity to be submitted for the Sole Proprietor (any one of the following):

* Passport OR
* Voter’s identity card OR
* Photo PAN card OR
* Driving license OR
* MAPIN card

Proof of residence address to be submitted for the Sole Proprietor (any one of the following):

* Passport OR
* Voter’s identity card OR
* Driving license OR
* Ration card OR
* Society outgoing bill OR
* Life Insurance Policy OR
* Electricity bill OR
* Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern
Financial documents
(all of the following):

* P & L and balance sheet for last two years audited by a C.A. AND
* Copies of IT returns for the last two years AND
* Bank statements for last 6 months for Business Credit upto Rs. 15 Lakhs and last 12 months for Business Credit above Rs. 15 Lakhs

Now for Business Credit

Partnership
Proof of identity of the Partnership Firm (any one of the following):

* Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR
* PAN ID / IT return of the concern OR
* Water / Electricity / Municipal tax bill in the name of the concern OR
* MAPIN card in the name of the concern OR

Proof of individual identity to be submitted for the all Partners (any one of the following):

* Passport OR
* Voter’s identity card OR
* Photo PAN card OR
* Driving license OR
* MAPIN card

Proof of residence address to be submitted for all partners (any one of the following):

* Passport OR
* Voter’s identity card OR
* Driving license OR
* Ration card OR
* Society outgoing bill OR
* Life Insurance Policy OR
* Electricity bill OR
* Telephone bill (land / mobile)

Partnership Deed
PAN ID / PAN allotment letter / Form 60 of the concern

Financial documents (all of the following):

* P & L and balance sheet for last two years audited by a C.A. AND
* Copies of IT returns for the last two years AND
* Bank statements for last 6 months for Business Credit upto Rs. 15 Lakhs and last 12 months for Business Credit above Rs. 15 Lakhs

Now for Business Credit
Private Limited Company
Proof of identity of the Limited Company (any one of the following):

* Sales tax / VAT /Service tax / Excise registration OR
* Registration under Shops and Establishment Act OR
* PAN ID / IT return of the concern OR
* Water / Electricity / Municipal tax bill in the name of the concern OR
* MAPIN card in the name of the concern

Memorandum and Articles of Association

Certificate of Incorporation

Board resolution

Copy of Annual Return establishing the shareholding pattern.

Proof of individual identity to be submitted for the authorised signatories and 2 directors (including the managing director) (any one of the following):

* Passport OR
* Voter’s identity card OR
* Photo PAN card OR
* Driving license OR
* MAPIN card

List of directors

Copy of Form 32 filed with ROC

PAN card / PAN allotment letter / Form 60 of the concern

Financial documents (all of the following):

* P & L and balance sheet for last two years audited by a C.A.AND
* Copies of IT returns for the last two years AND
* Bank statements for last 6 months for Business Credit upto Rs. 15 Lakhs and 12 months for Business Credit above Rs. 15 Lakhs

Sources : www.hsbc.co.in

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