What are the benefits of Venture Debt Loan?
You can use Venture Debt Loan in following cases: -
- It used for purchase of equipment
- Used for acquisitions
- When needed of additional capital
- when the amount of capital is too less for equity round.
| Bank Name | Min Interest Rate | Processing Fee | Max Tenure (Month) | Forclosure Charge | |
|---|---|---|---|---|---|
|
18.00%
|
1%
|
60
|
2
|
|
|
19.00%
|
1%
|
60
|
2
|
|
|
18.00%
|
1%
|
48
|
2
|
|
|
18.00%
|
1%
|
60
|
2
|
|
|
19.00%
|
1%
|
60
|
2
|
|
|
18.00%
|
1%
|
48
|
2
|
|
|
17.00%
|
1%
|
60
|
2
|
|
| Bank Name | Min Interest Rate | |
|---|---|---|
|
|
18.00% |
|
|
|
19.00% |
|
|
|
18.00% |
|
|
|
18.00% |
|
|
|
19.00% |
|
|
|
18.00% |
|
|
|
17.00% |
|
When you have a strong prospect of growth towards your business set-up, Lender wants to fund you as the possibility of repayment seems positive. These types of funds are generally utilized for purchasing new equipment, working capital & other capital expenses. You are required to check few criteria.
Eligibility Criteria depends on various factors like age of individual, repayment history, business sales/turnover& Creditworthiness ...etc.
There are top factors that generally affects venture debt eligibility criteria as given below: -
Nil Collateral: - Even for availing venture debt, lender want to know whether you are pledging any collateral/assets for getting loan, as to ensure the repayment can anyhow be collected. So, if won’t any property you lower the eligibility chances.
Higher project cost: - Usually, if your business plan can be executed with lower project cost, the high to fund get lower but if your business plan requires higher project cost as much as the risk level increase & eligibility get effected.
To increase eligibility, you need to consider Top points as given below, this will aid you in increasing your eligibility level.
Lower project Cost: - Suppose, if the business projection of cost seems higher, you should be able to manage things well with smaller liquidity at earlier stage as this will led you to enhance eligibility, by this you will be only required to pay low rates & long repayment terms.
Clear business strategy: - Remember, a clear business strategy is such best way to increase your eligibility, as much as the concept is clear with applicable strategies to generate revenue helps the venture capitalist to do funding without carrying any fear of losing money.
What are the benefits of Venture Debt Loan?
You can use Venture Debt Loan in following cases: -
What is the Interest Rate of Venture Debt Loan?
You have to pay 10 to 15% Interest on Venture Debt Loan.
When I have to repay of Venture Debt Loan?
You can repay Venture Debt Loan as a monthly payment.
What are the types of Venture Debt Loan?
There are three types of Venture Debt Loan: -
Who is eligible for Venture Debt Loan?
They are companies that have some history of operations but still do not have sufficient positive cash flows they can be eligible for Venture Debt Loan.
What are the benefits of Venture Debt Loan?
There are some benefits of Venture debts loans it can arranged much more quickly than equity financings, saving valuable management time or meeting unforeseen needs.
Is any collateral required for Venture Debt Loan?
Venture Debt does not require any Colleteral.
What is Venture Debt Loan?
It is a type of short or a long-term loan which can be provided by banks lenders nonbanks lenders.
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CA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
Read MoreCA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
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