CredAble Business Loan

CredAble Business Loan Highlights

• Collateral-free
• Smooth On-boarding Process
• No Hidden Costs/Charges
• Quick and Fast Disbursal
• Off-balance sheet financing solutions
• Dedicated Support

Business Loan Interest Rates

The NBFC has not publicly disclosed its exact business loan interest rates. However, the final rate offered to borrowers typically depends on several factors, including:

• Type of Loan Scheme/ Credit Facility
• Occupation Profile
• Business Profile
• Business Financials
• Credit Score & Repayment History

Fees & Charges of CredAble Business Loan

• Foreclosure/Pre-closure Charges: Up to 5% of sanctioned limits
• Processing Fees for New Credit Facilities: Up to 2% p.a.
• Overdue Charges (Default in payment/repayment of any amount in the relevant due date): Default interest charge of 2% per month on overdue amount for the overdue period to be calculated on daily basis.
• Dishonour charges per Instance: (Cheque/Standing Instruction/ECS/NACH) for loan repayment INR 1,000/- per instance

Note:

• To get a complete overview of the scheduled charges on CredAble Business Loan, visit the official website of CredAble.
• GST and other government charges, taxes, levies, etc., applicable as per prevailing rate will be charged over and abovethese charges.
• Processing/Login Fee (wherever applicable) is non-refundable if loan is not sanctioned/disbursed.

Types of CredAble Business Loan

Startup Financing

Startup Financing is an unsecured business loan for VC- and PE-funded startups. It offers quick access to funds with no equity dilution, backed by the cash flow of the company. The following are the startup credit solutions offered by NBFC:-

• Supply Chain Financing: Provides an invoice discounting solution for sales and purchases.
• Working Capital Financing: To meet short-term funding needs in the form of working capital demand loans.
• Shorter Tenure Term: Loans with a tenure of up to 18 months.

Sales Invoice Discounting

Sales Invoice Discounting helps manage working capital by discounting businesses’ unpaid sales invoices. It is a collateral-free working capital loan with a faster approval process.

Purchase Order Financing

Prospective business loan borrowers who need upfront working capital to fulfil large orders can apply for purchase order financing. This collateral-free credit loan offers funding against approved purchase orders to cover supplier payments and pre-shipment requirements.

Purchase Invoice Discounting

Purchase invoice discounting allows businesses to access instant working capital by discounting their purchase invoices and paying suppliers early. This facility helps businesses fund short-term purchases without straining their cash flow.

Working Capital Demand Loans

A working capital demand loan is a collateral-free loan that helps businesses cover their working capital needs. It is a revolving type loan based on the working capital cycle of the company.

How to Apply for a Business Loan via Paisabazaar

You can apply for a CredAble business loan through both the Paisabazaar app and its official website.

Using the Paisabazaar App:

• Download and install the Paisabazaar app
• Log in to your account
• Navigate to the Business Loan section
• Provide the required details
• Browse the list of partner lender offers
• Find CredAble Business Loan
• Tap on “Apply Now” to proceed

Through the Official Website:

• Visit Paisabazaar’s official website
• Go to the Business Loan section
• Enter your mobile number and verify it with the OTP
• Fill out the application form
• Browse the list of eligible lender offers
• Locate CredAble and click “Apply Now”

Eligibility Criteria for CredAble Business Loan

Stated below are the business loan eligibility criteria for unsecured and small business loans:-

For Startup Financing

• The company should be a startup and have raised a minimum USD 5 million from inception till date.
• The startup should have raised equity from Venture Capital investors or Marquee Private Equity.
• The startup should be Series A funded or beyond.
• The startup should have a cash runway of minimum 9 months.
• The startup should have a monthly run rate of a minimum Rs 4 crores.

For Sales Invoice Discounting

The business should be registered and have a minimum of 2+ years in operation to be eligible for the sales invoice discounting facility. The eligibility and amount of discounting depend on the business’s creditworthiness and the quantum and frequency of transactions with the end client for limit assessment.

Documents Required for CredAble Business Loans

The following business loan documents are required to submit a loan application:-

For Sales Invoice Discounting

• Individual & Business KYC details
• Bank Account Statements for the last 1 year
• Financials for the previous 3 fiscal years
• GSTR details for the current fiscal year
• Sales Ledger

Note: The same is true for working capital demand loans except for the need of sales ledger.

For Purchase Order Financing

• Individual & Business KYC details
• Audited financial statements for the last 3 years
• Bank Account Statements for the last 1 year
• Credit history and working relationship details with the PO Issuer
• Additional documentation as required for approval

FAQs on CredAble Business Loan

What are the repayment terms of Working Capital Demand Loan?

A Working Capital Demand Loan is a type of revolving loan. The terms for repayment are determined by the company’s working capital cycle and differ from one borrower to another.

Who can avail bill discounting services from CredAble and what determines eligibility?

CredAble’s bill discounting services are available to any business that provides goods or services. Eligibility and amount of discounting is governed by the creditworthiness of the business and the quantum and frequency of transactions with the end client for limit assessment.

What is the difference between purchase order financing and a business loan?

The main difference between purchase order financing and a business loan is that the former is designed to specifically finance suppliers based on approved purchase orders, while the latter offers general funds for a variety of business purposes.

How long does it take to get approval for a Sales Invoice Discounting facility?

While the time it takes to establish Sales Invoice Discounting arrangement can differ, approval and funding usually occur within 1 to 2 weeks.

Will Sales Invoice Discounting affect the balance sheet?

Sales Invoice Discounting is treated as a form of short-term borrowing and is recorded as a liability on the balance sheet. The early payment received against invoices is classified as debt until the end customer makes the payment.