Healthy Credit Score
  • July 23, 2022
  • Seo Team
  • 0

The new or small business needs strong creditworthiness to kickstart operations or expand the business. With strong creditworthiness, you can get easy loan approvals, a considerable amount, and lower interest rates. Initially, loan lenders assess two matrices i.e. the personal credit score and the business credit rank, one of the finest reasons why you should have a good credit score.

Nowadays, the major part of the business economy runs on credit and good credit can signify the future financial situation. An owing good credit report has many benefits, one of its major benefits for an entrepreneur is lower interest rates. A credit report is like a report card that states the financial health of the business.  Entrepreneurs with good credits are often offered lower interest rates, and higher loan approval rates, vendors may not demand prepayment, and also facilitates the separation of business and personal finance.

To maintain a good credit score, you need a leading integrated cash flow solutions provider. Initially, most startups rely on taking funds from friends and family, but as they grow they start looking for venture capitalists and banks. VCs and banks are also not considered as flexible because their system for securing loans is very rigid. Even if your business is not having good revenue you have to repay the loan in a fixed period.

So a popular alternative funding option has emerged as the go-to option to fund business growth without increasing liabilities. Under this model, investors agree to offer capital to businesses in exchange for a percentage of their total earnings. When you opt for RBF you do not need to provide any collateral. Above all, when you choose to access RBF through a leading fintech company such as VedFin, the documentation-associated processes are simple and quick. Before you apply for a loan there are five easy simple steps to follow:

  • Step1- Fill out the application form. It is a very simple 5-10 minute process.

  • Step2- Your e-application is processed by data analytic and AI-enabled software and a unique loan offers an auto-generated, especially designed for your brand, keeping in mind your business cycle, trends, and repayment capacity.

  • Step3- As repayment, you pay only a fixed percentage age of monthly net sales.

  • Step4- If you wish even after the repayment you can avail of fresh loans as your growth will be recorded by the company’s Data analytics and AI-enabled software on a real-time basis.

  • Step5- These Credit analysis and growth reports will be documentary proof for your loan and equity viability to other funding institutions.

Why is VED-RLD/Revenue Linked Debt Better Than Traditional Terms Loan?

  • Extend Cash Runway

To achieve your company’s next growth milestone without delay, VedFin provides an extra cushion of cash.

  • Full Growth

While minimising equity dilution, access the capital you need to fund growth initiatives.

  • Bridge to Profitability

During a critical period of the company, your company is propelled forward.

  • Increase Valuation

To fund growth projects and achieve a higher valuation, borrow between venture rounds.

  • Fund Large Capital Expenditures

Without depleting your cash balance or raising a round of equity, make large purchases.

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