The first part of this blog deals with fairly simple looking question i.e . “Are loans good for business”? This question at first looks simple as most would say Yes. Simply because loan involves a fixed payment which works as a leverage for an entrepreneur to generate alpha over the fixed payments. But this is always fraught with risk as business failure and startup losses are quiet commonplace. So careful analysis of the project and business by an independent CA or financial advisor is a must before even filing your loan application. I would highly recommend any person going for a loan to consult a professional with skill at analysing business from financial viability perspective. Sign a non disclosure agreement with the consultant and then prepare to answer all the questions so that he or she can give you an objective feedback on your business plan. This is a very critical step. No matter how much experienced or educated you are , an evaluation by an independent expert with fresh eyes is always beneficial.

So once you have done that and got a green light you can consider the options which I have narrated below for loans.

Getting your first business loan is always difficult especially at a lower interest rate. If you are a startup founder or an entrepreneur who has recently started business and need to take advantage of loans then this blog will surely help you. For ease of reference, I have written this blog based on the specific time you are seeking loans:

Phase 1: 0-24 months into the business: This is the most difficult phase of your business. Many businesses fail in this phase even before taking off.