Getting a Side Business Off the Ground with Lendingkart: A Step-by-Step Guide     

By
May 22, 2024

One of the good things about having a side business is that you may work on it as much or as little as you choose. Regardless, you put in a teeny tiny effort to keep it alive because you like doing it. That’s the beauty of a side business. It could either be a reliable source of additional income for you or just a pastime/ hobby that helps bring in a little cash.

However, what if your side business gains sudden traction? You may begin to consider it a viable small business venture. This is exactly when it’s time to invest a little more cash in your side gig so you can pay for better materials, more promotion, or anything else you need to get it to the next level.

But the question remains: Where can you find the money? This blog speaks all about how you can find a business loan in India through a business loan app. Read on to check out the step-by-step guide to getting new business loans.

How to invest in a side business without draining the savings?

Usually, people invest their savings when it comes to funding their side business. But, what are the options if you can’t afford to spend it?

This is when you should consider business loan solutions or invest in short term loans to finance your side project. While receiving funding from donations or taking loans from your network may seem easier, it is always a wise decision to take a business loan to take care of your side gig funding.

How to get small business loans: A step-by-step guide

With easy access to availing online business loans today, getting a loan while chilling back at your home has become quite easier. Here’s how you can get a business loan for your side hustle.

1. Developing a thorough business plan

First things first, making a business plan should be your top priority. Once done, start looking for a business loan. The key is, if you want your side business to succeed, you need a sound plan. Make sure you include the following:

  • A clear picture of your side business. The brief should include its purpose, aims, and objective
  • Marketing techniques, approaches, and campaigns
  • Deep market analysis
  • Details about the service/product you’re offering
  • Financial planning (budgets, estimates)
  • Information regarding the company’s leadership and operations

2. Determining how much to borrow

This is about deciding your loan amount. With your business plan in hand, the next step is to determine how much capital you will need to launch your company. Next, tally up the amount of cash in hand and the amount you will need from a loan. Once you decide on this, it’s time to make a budget. It should include the costs of:

  • The necessary supplies and equipment
  • Promoting and selling products
  • Accounting and legal expenses
  • Expenses for housing and transportation
  • Utilities
  • Rent

Adding up all these expenses will give you an idea about how much loan you would need at present.

3. Doing a thorough research on loan options

Next up, you need to look into the long list of loan options available to you so that you may apply for one. To launch your side business, you should look for one of the following loan options:

  • Personal loans/Loans for individuals (Credit-based loans)
  • Business loans (Interest rates for business loans tend to be cheaper because they are structured to meet the needs of firms)
  • Microloans (These are short-term and small loans specifically made for entrepreneurs)
  • Peer-to-peer lending (This is about borrowing money from private investors through digital platforms/online marketplaces)Note: Ensure checking and comparing the details, interest rates, repayment periods, and eligibility conditions of these Instant Business Loans before applying for any.

4. Applying for the business loan

You must only apply for a loan if you have all the necessary arrangements in place. Once done, get in touch with the lender and provide them with the details. This includes the collateral, business strategy, financial forecasts, and other relevant details.

You should also be ready to allow the lender to look into your finances and credit history. This would give them a better idea of how much money you can afford to repay. In case your credit score isn’t really good, finding a co-signer can increase the odds of your loan approval.

5.  Steps to apply for the loan

Although several providers offer business loans in India, Lendingkart comes with one of the most hassle-free processes. Here’s how to do it:

  • Login to the marketplace
  • Check your eligibility
  • Complete your application process (fill out the form and submit the necessary documents)
  • Within 24 hours, Lendingkart will evaluate your request and propose a suitable business loan offer
  • If you feel content with the proposal, you need to sign the loan agreement and send it back along with your KYC documents
  • After verification, you will receive the funds straight to your account.

Conclusion

Financing a side business can sometimes seem irrational because it’s a small venture which may or may not flourish. Even if your aspirations for a side hustle aren’t as lofty, getting a business loan to fund its growth is a significant step. If you are committed to making this ‘not-so’ side business anymore, taking the necessary steps to help it grow increases the chance of its success.