Traditional business lenders like banks, have an elaborate application process that involves multiple documents, including: business plans, personal and business credit scores, at least two years of financial statements, tax returns, and even a comprehensive and updated resume. As can be imagined, collecting, updating, submitting and often re-submitting these documents, because they may not be deemed complete or correct, is time consuming, and can be costly as well.
Traditional lenders take months to evaluate a loan, and it’s not uncommon for more than a dozen different people to assess a single application (or at least have it on their desk!) at one point or another during the process. Furthermore, applicants must have near-flawless – or in some cases, completely flawless — business and personal credit scores, and at least two years of business financial statements. Otherwise, their application is almost certain to be rejected.
Traditional business lenders demand that business financial loans are backed by collateral, such as equipment, properties, vehicles, etc. Without enough collateral, the loan won’t be approved.
Traditional business lenders impose strict and in some cases severe restrictions on how business owners can use the loan. For example, if the application noted that the business financing would be used to purchasing inventory, then that’s how the money must be spent. It doesn’t matter if the business owner might have a more important or profitable use for the funds. There is no flexibility.
Traditional business lenders don’t want loans to be repaid early. This is because their profit is based on collecting at least 100% of the anticipated interest (it can be higher than 100% if there are any repayment missteps).
Alternative business funding sources dramatically streamline the application process by using a 1-page application that can be filled out online at anytime. What’s more, only a small number of simple supporting documents are required, such as a few months of business bank statements, and a cost-benefit analysis to get a sense of monthly average cash flow.
Alternative funding lenders take a completely different approach to their business funding process. Loan applications are assessed within 24 hours. Furthermore, applicants with imperfect or bad credit scores – personal, business or both – can still apply. And upon approval, funds are deposited into the applicants account within hours.
Alternative lenders don’t require collateral to be assigned to the loan. This helps strengthen a business’s balance sheet. It also gives business owners the freedom to liquidate an asset (e.g. equipment, vehicles, etc.) if they find it profitable, desirable or necessary to do so. You can use the proceeds of alternative business funding any way you choose.
Alternative business funding allows you to decide how a business should spend its working capital. That’s why there are no restrictions or conditions of any kind on how the money can be spent. This is particularly valuable if a golden opportunity arises, such as the chance to reel in a huge customer, or win a lucrative project bid.
Once again, alternative funding platforms take a categorically different approach. While prepayment is optional (i.e. there’s no requirement or even request), business owners who find themselves in a position to pay back their loan earlier than scheduled can do so, and reduce their interest costs.
An entity falling within the definition of a “Qualified Institutional Buyer” as defined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended from time to time
A Company incorporated under the Companies Act 2013 (of India) or equivalent legislation in force in a foreign country with a minimum net worth of Rs. 20,000,000 (Rupees Twenty Million or equivalent in the currency of the foreign country), the net worth of whom has been certified by a chartered accountant if it is a resident in India and by a certified public accountant or a chartered accountant or a banker if it is a resident outside India, or by a resolution of the board of directors), as may be acceptable to us
An individual (high net worth individual, also called “HNI") who is over 18 (eighteen) years of age and who has a minimum net worth of Rs. 20,000,000 (Rupees Twenty Million or equivalent in the currency of the country where the individual is resident) or more and who has provided a declaration in the form of a certificate certifying/confirming his/her net-worth. Where an HNI is investing through a holding company or such other legal entity, then the net worth requirement of such holding company or other legal entity shall be reckoned on the basis of net worth of the principal shareholder/ owner/ promoter of such company or legal entity. Such a company or legal entity shall provide a net worth certificate by a chartered accountant if it is a resident in India and by a certified public accountant or a chartered accountant or a banker for if it is a resident outside India, or such other certification as may be acceptable to us confirming that its principal shareholder/owner/promoter meets the net-worth criterion applicable to an HNI.
An individual ("Eligible Retail Investor" / "ERI") who is over 18 (eighteen) years of age and who has an annual income (from all sources) of at least Rs. 5,000,000 (Rupees Five Million or equivalent in the currency of the country where the individual is resident) and who has provided a declaration in the form of a certificate, certifying / confirming his/her annual income. Where an ERI is investing through a holding company or such other legal entity, then the annual income requirement of such holding company or other legal entity shall be reckoned on the basis of annual income of the principal shareholder/ owner/ promoter of such company or legal entity. Such a company or legal entity shall provide an annual income certificate by a chartered accountant if it is resident in India and by a certified public accountant or a chartered accountant or a banker if it is resident outside India, or such other certification, as may be acceptable to us confirming that its principal shareholder/ owner/promoter meet the annual income criterion applicable to an ERI.
Apart from satisfying applicable eligibility criteria as stated above, you represent and warrant to us that you are fully authorized by the laws of your jurisdiction, and where applicable, from the perspective of corporate governance norms applicable to you, to participate in the activities of our platform.