A business loan for working capital or growth
Business lending covers everything from a term loan for equipment to a working-capital limit that funds the gap between paying suppliers and being paid. Our lending partners assess the business, not just the promoter, and set their own terms.
Secured or unsecured, depending on the lender's product and your business.
We introduce, the lender decides
TommyAndFurry Insurance does not lend money. We introduce you to lending partners who handle the kind of loan you are asking about. The loan agreement is between you and the lender you choose, and the lender alone decides whether to approve your application and on what terms.
Loans are offered by our lending partners and are subject to their eligibility criteria, terms and approval. [LENDING PARTNER DISCLOSURE]
No one can promise you a loan, a rate or a date before a lender has assessed your application. We will not tell you that you are approved, and we will not quote a rate a lender has not offered you.
What a business loan is
A term loan gives you a fixed amount repaid over a fixed period, and suits a one-off investment such as equipment, a fit-out or an expansion. A working-capital facility is a limit you draw on and repay as money moves through the business, and suits the gap between paying suppliers and collecting from customers.
Some business loans are secured against property, stock or receivables; others are unsecured and priced higher for it. Which is available to you, at what rate ([INTEREST RATE]) and for how long ([MAX TENURE]), follows from the lender's assessment of your business.
Who it usually suits
Funding a working-capital gap
You pay suppliers and staff before your customers pay you, and a facility that bridges that gap keeps the business trading.
Buying equipment or fitting out
A one-off investment with a useful life, where a term loan spreads the cost over the years the asset earns its keep.
Taking on a larger order
Growth needs funding before it pays. Lenders will want to see the order, the margins and how you plan to deliver.
When it isn't the right tool: Borrowing will not fix a business that loses money on every sale, and it will not replace collections that are not happening. Sort the underlying problem first; a lender will ask about it anyway.
What lenders typically look at
General points, not any lender's criteria. Each of our lending partners applies its own credit policy and can weigh these differently.
How long the business has traded
Lenders want a track record and each sets its own minimum trading period. A business that has only just started is assessed very differently from one with years of filings.
Turnover and bank statements
Your banking is the clearest picture of the business: what comes in, how regularly, and whether returns or bounced payments show up.
Filings and profitability
Income-tax returns, GST returns and financial statements for the period the lender asks for, and whether they tell a consistent story.
Borrowing the business already carries
Existing loans, limits and how they have been run, alongside what the promoters owe personally.
The promoters
Lenders look at the promoters' own repayment records and experience in the trade, as well as at the business.
Security, where the product needs it
Property, stock or receivables may be taken as security. If property is pledged, the lender values it and checks its title.
Terms we cannot confirm yet
These are the numbers people ask about first, and we will not guess at them. Each one is set by the lender for each application, and will appear here once our lending partners have confirmed it.
- Loan or limit
- [LOAN AMOUNT RANGE]Within its own range, the lender decides what it will sanction.
- Interest rate
- [INTEREST RATE]Quoted by the lender for your application. We cannot quote it for them.
- Maximum tenure
- [MAX TENURE]A longer tenure lowers the EMI and raises the total interest paid.
- Processing fee and charges
- [PROCESSING FEE]Charged by the lender. Every charge should be listed in its sanction letter.
- Income considered from
- [MIN INCOME]Each lender sets its own cut-off under its own credit policy.
- Lending partners
- [LENDING PARTNERS]Published here once each partner agreement is in place.
Documents usually needed
A general list, not a lender's list. Each lending partner publishes its own requirements and can ask for more.
The business and its owners
- PAN of the business and of the promoters
- Aadhaar or other KYC for each promoter
- Proof of the business address
How the business is constituted
- Partnership deed, or the certificate of incorporation with the MOA and AOA
- Udyam or other registration certificates, where you hold them
- GST registration certificate, if you are registered
Financials
- Income-tax returns with computation for the period the lender asks for
- Financial statements, audited where that applies to you
- Current-account bank statements
- GST returns, if you are registered
- Existing loan statements and sanction letters
How to apply
Be clear what the money is for
A term loan and a working-capital limit solve different problems. Knowing which one you need, and what it will do for the business, makes the whole conversation shorter.
Send us an enquiry
Tell us what the business does, roughly what you need and what it is for. An advisor calls you back.
Put the file together
We tell you which of our lending partners handle business lending and what each of them asks for, and go through the filings and statements with you.
Assessment
The lender assesses the business and the promoters, and values any security it is taking. It may come back with questions on the numbers.
The lender decides
If it approves, the lender issues a sanction letter with the limit or amount, the rate, the fees, the tenure and any conditions. Read the conditions carefully before you sign.
Do the sums first
- EMI calculatorPut in an amount, a rate and a tenure and see the monthly EMI, the total interest and the total you would repay.
- Home-loan eligibilityA rough indication of what your income and existing EMIs could support, before you speak to any lender.
Both calculators work on the numbers you type in and give you an estimate. They are not an offer, and the lender's own assessment is what decides your loan.
Business loan questions
Do I need collateral?
It depends on the lender's product. Some business loans are secured against property, stock or receivables; others are unsecured and priced higher for it. Which is open to you follows from the lender's assessment of your business.
Can a new business borrow?
Lenders usually want to see the business trading for a period they set themselves before they will consider it, and that period differs from lender to lender. We cannot tell you in advance what any of them will decide.
A term loan or a working-capital limit?
A term loan is a fixed amount repaid over a fixed period and suits a one-off investment. A working-capital limit is a facility you draw on and repay as cash moves, and suits recurring gaps between paying and being paid. Many businesses end up with both.
Will the promoters have to guarantee it?
Lenders often ask promoters to guarantee a business loan personally. A personal guarantee makes you liable for the debt in your own right, so read what you are signing and take advice if you are unsure.
How much can the business borrow?
[LOAN AMOUNT RANGE] is the range, and where a business falls inside it depends on its turnover, its filings, its existing borrowing and any security offered. The figure is the lender's.