Business Loan Eligibility Criteria PinCap
Business Loan Eligibility Criteria PinCap

A small business or startup has option to choose from a wide variety of small business loans. In India, both banks and non-banking financial companies provide various small business loans. The loan amount, tenure, interest rate, and terms of borrowing differ from one lender to another. Likewise, the small business owner also needs to meet the business loan eligibility criteria set by the borrowers to avail a long-term or short-term business loan.  The eligibility criteria set by the lenders also vary a lot. In India, the small business owners have traditionally been depending on public sector banks for their financial needs. Unfortunately these institutions have very strict criteria for assessment.

Also, the products offered by such lenders are not flexible enough to meet the borrowers’ needs.  But a small business owner can raise working capital quickly and conveniently by opting for technology driven innovative financial products like Point of Sale financing and invoice discounting. POS based business loan is a collateral-free credit option, whereas invoice discounting is an asset based financial product. Both products are also very flexible and custom suited to the borrower’s needs. POS based business loans enable retailers with existing point of sales (POS) machines to raise working capital finance based on the swipe data. Interested readers can read on to know important aspects of Point of Sale Lending. On the other hand, invoice discounting enables business owners to avail credit by using account receivables or invoices as collateral.

In India, there are a number of non-banking financial companies (NBFCs) that provide both conventional and technology-driven loans to business owners. In addition to providing unsecured small business loans, these NBFCs also provide technology driven financing like POS-based loans. Also, they help business owners to improve cash flow situation by discounting invoices or goods receipt notes (GRN) against the goods or services delivered to an anchor on credit. Different lenders have different loan products and follow different business loan eligibility criteria for them. For instance, we, at Pinnacle Capital Solutions Private Limited (PinCap) – a RBI registered NBFC – allows business owners to choose from three distinct loan products – term loans, Point of Sale finance solutions and Invoice/GRN discounting.

Hence, a business owner can meet his financial needs by availing the loan products provided by PinCap. He can opt for a term loan to raise working capital in a single lump sum and repay the loan based on a predefined payment structure. Likewise, he can also raise working capital based on the monthly sales routed through EDC terminal and choose from two distinct repayment options. At the same time, PinCap also helps entrepreneurs to meet working capital needs by discounting invoices or GRN against the goods or services delivered to an anchor on credit. The multiple loan products make it easier for entrepreneurs to meet their financial needs in a quick and convenient way. However, the business owner must meet the eligibility criteria set of PinCap to avail any of the small business loans.

Eligibility Criteria for Availing a Small Business Loan from PinCap

  • Company turnover should be greater than 40 Lakhs INR
  • Vintage or age of business must be greater than 1 year
  • CIBIL score must be greater than 600 for each of the applicants
  • Company must be profitable
  • Maximum sanction limit is Rs 50 Lakhs

Eligibility Criteria for Discounting Unpaid Invoices/GRN with PinCap

  • Company turnover should be greater than 40 Lakhs INR
  • Vintage or age should be greater than 1 year
  • CIBIL score should be greater than 600 for each of the applicants
  • Company profitable or heading towards break-even in case of startup
  • Tripartite agreement to route money directly from the anchor to PinCap
  • Maximum sanction limit is Rs 3 Crore

Eligibility Criteria for Availing a Point Of Sale Business Loan from PinCap

  • Age of the borrower must be more than 23 years and less than 60 years
  • The borrower must have an established business address or operating address
  • CIBIL score should be greater than 600 for each of the applicants
  • Loan amount determined based on the monthly sales routed through EDC Terminal
  • Maximum sanction limit is Rs 50 Lakhs

Unlike conventional financing options, the technology driven loans help business owners to meet both immediate and short-term financial needs. PinCap further makes it easier for owners of both startup companies and established enterprises to avail credit without using their valuable business assets as collateral.

Business Loan Eligibility Criteria
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