The Green Building policy is part of the city’s efforts to achieve low to net-zero carbon performance for all new buildings.
occasionally subtle
Cosimo Galluzzi
Peter Solarz

Origami Around
let's talk about Bridgerton tea, my ask is open
No title available

JVL

izzy's playlists!
Misplaced Lens Cap
🪼
Mike Driver
Aqua Utopia|海の底で記憶を紡ぐ
Not today Justin
taylor price

Discoholic 🪩

@theartofmadeline
styofa doing anything

blake kathryn

No title available
Alisa U Zemlji Chuda
seen from Venezuela
seen from Venezuela

seen from Venezuela
seen from Venezuela

seen from Türkiye
seen from United States

seen from United States
seen from United States
seen from United States
seen from United States

seen from United States

seen from United States
seen from United States
seen from United States

seen from United States
seen from United States
seen from United States

seen from Saudi Arabia
seen from United States
seen from Belarus
@nairsaloni
The Green Building policy is part of the city’s efforts to achieve low to net-zero carbon performance for all new buildings.
Is India Ready For Energy-Efficient Homes?
India has been at the forefront of green technology. Historically, the homes were designed in harmony with nature. Starting from a macro level of townships to an individual’s abode, our spaces incorporated concepts of natural ventilation, shading and daylighting, shared community areas for farming, recreation as well as storage of extra produce.
The materials used for construction were locally sourced and it was the community that helped build homes and creates a sustainable living. Over years, globalisation allowed modernisation and sharing of designs across borders that also significantly impacted one’s idea of comfort and living.
Dikshu C. Kukreja, an architect from Delhi says, “In recent times, not only has the government been a vocal supporter of green living but also implementing rigorous efforts such as providing tax benefits, regulating house loans at lower costs for green homes, funds for energy-efficient projects, subsidising costs for energy-conscious products, etc., they have been able to inspire community-driven initiatives as well.”
Selvarasu M, managing director, LEAD Consultancy and Engineering Services (India) Pvt Limited, explains that the object of energy-efficient homes is to facilitate building design to minimise heat ingress with proper selection of building materials, use of energy efficiency equipment, use of renewable energy sources for power generation, metering to monitor and control energy performance without compromising occupant’s health and well-being. By doing so, we will be operating home with less energy cost and this will be a great cost-saving for the entire life of the building. Many homes designed with energy efficiency demonstrated more than 30 per cent energy savings and proved that energy efficiency makes lots of business sense for owners in the long run.
An energy-efficient home is one that is able to utilise natural resources such as heat, light, water, and energy, etc. well and create a healthy and livable environment along with preserving energy consumption. Though an individual house is a small entity, due to their large overall quantum and built-up area, they contribute significantly to the carbon footprint.
Kukreja says, “As technologies evolve to upgrade living standards for humans, with limited availability of natural resources, it is imperative to be mindful of how we design our spaces to achieve maximum benefit.”
The Indian residential sector is responsible for 22 per cent of the current electricity use and is expected to lead the electricity demand representing 39 per cent of the total electricity demand by 2047. A rapid increase in the residential building stock, coupled with an increase in electricity use for space conditioning, is resulting in a rapid increase in electricity use in residential buildings. Projection done by NITI Aayog indicates that the electricity consumption for the residential sector is expected to increase 6-13 times by 2047.
With improved design strategies through innovation in engineering and technology, different aspects of conservation and preservation of energy have improved. This has been helpful in widening accessibility to components and techniques assisting with energy efficiency. Kukreja adds, “A technology which might have been a cumbersome task to locate, manufacture and incorporate into designs ten years back, is now being supported by the majority of the product and technology providers, allowing customers to choose the best at an affordable price.”
It is no surprise that India has been working in this direction for more than a decade now. There are schemes and guidelines by the government that one can follow to meet the requirements of an energy-efficient home. Stuti Gawri, Interior Designer and Director, The Greyy Room, Delhi says, “The idea is to make better use of our natural renewable resources and create awareness of energy conservation and make maximum use of technologies that are energy-efficient and innovative.
Steps are already underway even in villages as people are being made aware of the use and the power of solar energy and water harvesting and recycling. ECO-NIWAS is one such powerhouse that believes in energy conservation and building a new India with sustainable and affordable housing that is accessible to all. Government-led initiatives and incentives have also played a huge role in boosting efforts such as green buildings and net-zero energy homes. Design ratings from prestigious organisations such as GRIHA and IGBC have also helped in keeping brands to incorporate “green” aspects in their products and inspire healthy competition in the market.
While rapid urbanisation, growing cities provide various opportunities, there are fallouts in terms of proliferation of slums, high prices of land, and building materials which render houses unaffordable for the segment at the bottom of the pyramid. Therefore, the need for adequate housing for low-income groups will substantially increase. With this background, the affordable housing concept has come into the picture.
Selvarasu explains that the affordable housing projects are constructed with carpet area up to 60 sq m per dwelling unit in metros and 90 sq m per dwelling unit in non-metro cities as per PMAY (Pradhan Manthri Awas Yojana) by providing a reduction in energy and water consumption, improved health and hygiene, better sanitation, better ventilation and light in the dwellings, fuel savings in transit of people to workplaces and associated pollution. With this background, IGBC (Indian Green Building Council) has launched the affordable housing rating system in the year 2017. Due to the market transformation for use of green materials and energy-efficient equipment, the price has come down drastically in the past 10 years. It is feasible to use energy-efficient technologies in the affordable housing segment also with the current industry norms to make it economically viable.
Easy And Affordable Steps To Make Energy-Efficient Homes:
*Ensuring natural ventilation and daylighting as much as possible.
*Conserving energy by using LEDs, green-rated electrical appliances (air-conditioners, refrigerators, washing machines, generators, etc.).
*Alternatively, one could also use solar panels to meet their energy demands.
*Rainwater harvesting on an individual or community level can go a long way in meeting water demands.
*Grey water management by recycling and reusing wastewater from showers, baths, basins, and washing machines in toilets, irrigation, and non-potable consumption reduces water wastage.
*Segregating waste to reduce, recycle and reuse before it is discarded and sent to waste management centres is critical for sustainable energy management.
Explore our platform features, add data, create profile, contact users & much more. The best sustainable building champions platform. Know more
Reasons Why the Importance of Green Building is Gaining Momentum
Unless you’ve been living under a rock for the past decade, you’ve probably noticed the increase in popularity of the green movement. Americans are growing more and more concerned about the environmental impact of the decisions they make and businesses are listening. More companies than ever before are changing their practices and products to be greener and more environmentally friendly and construction companies are no exception. Green building has certainly gained momentum recently and for good reason. Let’s now move on and learn a few things about green building and its growing importance.
What is green building?
Green building ultimately translates to the important efforts of construction of which companies use the most environmentally safe products and practices where possible. Green builders are trained experts in designing green homes in the most environmentally friendly way possible. This method of building has seen a spike in interest given the growing concern for the environment. More and more people are interested in what sort of benefits green building can offer them. In the next section, we’ll discuss why it’s so important and how it can benefit you.
The significance and benefits of green building
This method of building helps to decrease the environmental impact of development and minimize energy usage – brilliant for lowering pollution. Their efforts help to produce a home or office building that creates the smallest environmental impact possible, conserves water and energy, and saves you money in the long run.
When all efforts are made to construct a truly green building, your office or home requires less energy to function properly. If you choose to install solar panels, you can not only save money and use the cleanest energy available, but also, after a period of time using it, you can sell energy back to the utility company, saving you even more money. The benefits to green building go far beyond just the environmental impact.
So how effective are green buildings? Here are some of the primary benefits that organizations should be aware of:
Environmentally friendly businesses can reduce energy consumption by 25% or more. The exact efficiency depends on a variety of factors, including the climate, type of energy efficient amenities that were added (such as Energy Star appliances) and the experience of the green contractor. The ROI from saving energy will be higher as energy prices continue to rise in the near future, even if green buildings don’t become more energy efficient.
Reducing pollution can significantly reduce the risks of being cited for environmental regulations. This can be a greater benefit as the EPA and municipalities start cracking down on companies that leave a larger environmental footprint. Some experts estimate that green businesses can reduce pollution by 20% or more.
Green buildings will make it easier for companies to operate sustainably as oil, coal and other natural resources are depleted.
The benefits are becoming more pronounced as green building designs improve. The National Institute of Building Sciences reports that green buildings have become far more sophisticated in recent years, so the energy saving benefits are much higher as well.
Why is green building gaining momentum?
Green building is an innovative new method of building that encourages efforts being made to be as environmentally friendly as possible in the construction process. This increases its ratings amongst the many people with a growing concern for the environment. It’s gaining momentum because it’s both financially and environmentally beneficial (especially in the long-term). The changes to greener practices and products are easy to make and relatively inexpensive, especially when compared to how much money could be saved once the building is up and running. It can be fairly lucrative to switch to green living, which surprises many, and of course, it is good for the environment.
Green building is a new innovative way to construct homes that minimizes the environmental impact. This method of construction can help minimize your environmental footprint, conserve energy and water, and save you money. The importance of this new method of construction has definitely gained momentum as clearly shown by the increased demand and interest in green construction.
Hopefully, after reading this article, you will be ready to consider your options when it comes to the prospect of building a property.
For India to plan investments in buildings efficiency as a means of economic recovery, collaboration and trust between national and subnational, state and non-state actors is critical.
Know more about Btrlyf, a sustainable building champions at https://list.btrlyf.com
EU Study Proves that Energy Efficiency has positive impact on mortgage default risk
Based on research conducted by the Horizon 2020 Energy Efficient Data Protocol & Portal (EeDaPP) Project, it is now proven that higher energy efficiency in buildings lead to lower risk of mortgage defaults and better credit scores. The Energy Efficient Mortgages Initiative (EEMI) has recently published their final report on their study conducted on approximately 470,000 real estate valuations in the European Union (EU) countries. The Report’s econometric analysis demonstrates a negative and significant correlation between the buildings’ energy efficiency and the probability of mortgage default.
This very interesting analysis means that energy efficient mortgages represent several advantages for lending institutions, borrowers and policymakers. Namely, they are believed to reduce the owners’ payment disruption risk, increase property value and, as a result, reduce credit risk for banks and financial institutions. "This report shows that people with more energy efficient homes and lower energy bills, can better afford their mortgage payments, reducing financial risk for banks and investors." commented an expert, Murray Birt, who is a Senior ESG Strategist at DWS
This hypothesis has been held in their hearts by several proponents of Energy Efficiency and Sustainability in the Built Environment. Now this report clearly concludes that it is true. The built environment plays a crucial role in mitigating impact of climate change as it uses 40% of energy and contributes to 30% of carbon emissions globally. The benefits of green and sustainable buildings however goes far beyond the environmental aspects, as proven by this report. In general sustainable built environment can create the following benefits for its stakeholders:
Lower operating costs (savings in energy and total life-cycle costs)
Quality assurance (provided by the documentation and certification)
Higher building value at point of sale
Future proofing of assets
Increased productivity for tenants
Higher rental rates
Higher occupancy rates
Hope this recent report will provide the necessary new ‘green’ paradigm shift into credit risk management for sustainable buildings.
Btrlyf.com strongly believes in the power of sustainable buildings in creating a better life for everyone and hence provides avenues for built environment stakeholders to connect, do analysis and create a positive impact on climate change aspects of the built environment
Search the most complete Sustainable Buildings champion database. Find Champion. Know more
Why stacking business loans should be avoided?
If you’re the owner of an SME company, you know that having enough cash flow is crucial to your business operations. Due to this, it’s likely that you’ve taken out additional funding from an SME business loan lender. While you’re paying off your small business financing, you might find yourself in need of more working capital. Although it might be tempting to apply to multiple lenders to get another SME business loan or other financing option, this would be considered stacking. Even if you’re applying for another SME business loan, make sure you’re informed on the risks of stacking loans. Receiving additional working capital might seem like a win-win. But remember, it can be very risky for your business.
Why is it harmful to stack loans?
Taking out two loans might look risk-free but having two loans to pay off at the same time could be a major financial burden on your business. Think about the application process you went through with the first lender. They perhaps did a detailed analysis of your business’s financial details such as your credit score and monthly sales and how your SME Company operates. At the end of the process, they provided your business with working capital. And decided on either a fixed daily amount or a percentage of your sales that they felt you would be able to handle without hurting your small business. But then some of the damage could include a drop in your credit score, the inability to pay other bills such as credit card payments and rent, and even losing your business altogether. And what’s more, it’s totally unfair to the lenders who you won’t be able to pay back on-time.
What’s the Solution?
Instead of stacking loans, contact the SME business loan lender you received the first round of financing from, and discuss your need for additional working capital. By doing this, you can possibly obtain more financing in an accountable way. Also, the lender might be willing to provide you with a better repayment schedule. Keep in mind, the lender that already provided you with working capital is invested in the success of your business and won’t want you to struggle due to capital constraints. They might be able to give you more working capital since they already know about your small business. Thus, you’ll only need to make loan payments to one lender.
Bottom Line
As a businessperson, it’s important to learn about working capital management prior to taking out an SME business loan. Stacking can damagingly affect both the small business and the lenders; it should be avoided by all parties involved.
Small Business Loan Application Checklist – Tips to Get Ahead
Do you have big plans for your small business, but no funds to make them a reality? If yes, you might have perhaps considered financing options like taking out a small business loan. Although many small business owners do so, taking out micro loans has its pros and cons. You will have to balance the benefits of receiving the micro credit to grow your business with factors like added interest, hidden fees, and strict repayment periods. All ready to get a head start on getting loans for small businesses? Here is a breakdown of what you need to get organized.
· Personal Background and Financial Statement
You’ll have to complete a personal background and financial statement. Essentially, a lender wants to ensure that your personal credit score is genuine before offering you money to help you improve your business. The form requires personal identification information such as your phone number and address, along with a declaration of your current financial assets.
· Business Financial Statement
Business financial statements break down your company’s income, expenses, and general plan to manage funds. Are you already using a balance sheet? Then creating a formal financial statement should be candid. The business financial statement includes assets and liabilities.
· Business License or Certificate
You will need to register your company with a business license or certificate before your lender considers it to be genuine. The kind of business license or certificate you will get is typically liable on the specific type of business for which you are registering.
· Loan Application History
If you were lending someone money, you would probably want to know about their history of making timely payments to lenders and how many times they had tried to access credit. The same concept applies to obtain a small business loan, as your loan application history could affect your ability to get a new loan. Whether or not you have received all micro loans you have applied for in the past, your loan application history statement verifies any past applications for small business loans. This information helps lenders decide whether or not you would be a good candidate for a loan.
· Income Tax Returns
Providing your income tax returns is the key when applying for a loan. In order to complete this part of your small business loan application checklist, you will need to provide your business personal income tax returns for the past three years. Ensure the tax returns are signed and feature the correct information before submitting to your lender.
· Business History and Overview
An important aspect of your application checklist is the business history and overview form, which are used to communicate the all-embracing vision and business goals. When applying, your lender will want to know how you will use your business loan and asks for a brief history and overview of your business plan to verify legitimacy.
Way Forward
Because taking out a loan is a big decision, it is a good idea to make a small business loan checklist to ensure you are efficiently completing the application.
How entrepreneurs benefit from business loan
Every person that you meet has a story, wish for their own venture but very few make it all the way. Their first concern is capital for the business and nowadays business loans are the best option. And once the word spread of you looking out to venture into business, there will numerous options available. Depending on where and the way the SME business loan originates, borrowing money is often dangerously expensive, as interest and costs are related to virtually every loan. Businesses can and will calculate the quantity of total interest which will be paid over the course of a loan before accepting one.
In this article, we'll highlight all the advantages offered by the business loan to form the young entrepreneur’s dream come true. Mainly money is that the concern that forefronts preventing them from fixing a business.
1) Lower Rate of Interest
When you remove a business loan, you’ll always be worried about what proportion that loan goes to cost you within the end of the day. And that’s why interest rates are a high big concern and low-interest rates are an enormous advantage. Your interest rate will depend on your creditworthiness and the qualifications you bring to the table, but the interest rate advantage of business loan means that you could be looking at rates as low as 6.75%.
2) Easy to Access
Most business owners don’t have time to waste. And waiting for profits to grow to reinvest them can take a long time. It’s easy to urge in touch together with your bank and ask them about the likelihood of removing a business loan. This convenience and simple access are some things which will be good for businesses. Loan applications can take an extended time to be analysed and accepted, but they're easier to affect than the bulk of the choice options.
3) Profits are yours
If you get this money from an investor, they're going to expect a return on any money you create. That’s not the case once you remove a loan, though. The returns are fixed, meaning that you simply can pay an equivalent amount of cashback to the bank regardless of how big or small your profits become as a result of your investment. Most business owners take out a business loan because they want to expand their business or push it in a new direction which makes it more profitable for the owner.
The Bottom Line:
Given these benefits offered by availing the business loan, young entrepreneurs can now stop worrying about funding. The main thing to recollect when obtaining a business loan is to buy around for the simplest loan rates and always partnering with a trustworthy any non banking financial institutions in India.
Business loans sometimes take businesses to another level but it happens only if you have taken care of certain aspects financially. Up to 1 crore, they will get a loan which gives them a self-assurance to start any business. Choose the proper funding agency to enjoy these benefits while applying for a business loan. Age isn't a barrier to become a successful entrepreneur.
Most common challenges businesspersons face while availing a business loan
Monetary permanence is one of the most important things necessary for any business. And to maintain cash flow, businesspersons have to face a lot of problems such as insufficient funds. Overcoming these challenges and arranging funds seems to be the biggest hurdle which restricts entrepreneurs from growing. Let’s have a look at some of the most common challenges that a businessperson faces.
· Managing cash flow
One of the biggest challenges for businesspersons is to maintain the cash flow for the smooth functioning of the business operations. Regardless of the profits your business makes, there should be adequate funds for the business. A businessperson should have an estimated budget and plan for the business in the starting of the month itself. If you don’t have adequate funds even for some months in order to run your business, you are really in a problematic state. In order to avoid such a situation, one should start looking for a fast unsecured business loan in advance from Non-Banking Financial Institutions.
· Failing to access obligatory fund
The fund requirement might be small for SMEs as their budget is low. And traditional lending institutions like banks find it unprofitable to lend a small amount. This makes it difficult for entrepreneurs to access the obligatory funds. That’s when the unsecured business loan in Mumbai comes into the picture which can be availed from NBFCs.
· Extensive loan approval process
The business loan approval period is too lengthy when you avail it from traditional institutions like Banks. They take a lengthy period to process and sanction a business loan application. This can be vital and it is determined on several things which include your personal profile, your business profile, your business plan, credit ratings and your capacity to repay the loan.
· Lack of a thorough business plan
To be successful in any business, you must have a well-defined business plan. This plan should include all the estimated expenses such as your staff salary, rent of the outlet, inventory purchase cost, and much more. Also, it should outline the scalability, market size, competition, product development, marketing strategy, cost competitiveness, management bandwidth, and overall strategy road map. A perfect business plan is one which shows hope of profit along with the risk factors involved and losses which can happen in the worst-case scenario. These are required while preparing a business plan. Unluckily, some businesspersons overlook these points and won’t include in their business plan which results in rejection of their business loan application. All business loan lenders check for the business plan before approving any business loan application. And if they are not satisfied with it, they reject it then and there!
Final Thoughts
Aforementioned are some of the common challenges an entrepreneur faces while availing a business loan in India. Knowing these can help you to find the most suitable solutions for the challenges in advance. Also, this will help you to achieve success without any failure. Moreover, this will make you try to be prepared with the solutions in advance and you will be on the way to being a successful businessperson.
Common business loan terms to know
Within the context of business loans, the word “terms” typically refers to the amount of time you have to repay the business funding you take on. That said, during the process of finding the right loan for your business, you’ll come across a lot of complicated languages. For an entrepreneur who has yet to come across the jargon, even the most common terms can cause confusion. Many entrepreneurs will want to know common business loan terminology too, which is just as useful to familiarize yourself with if you’re about to sign on to a business loan agreement. Let’s dive into the details.
· Accounts Payable
Also often referred to as “current liability,” accounts payable is a business loan term that refers to short-term debt that you’ll need to pay off soon. Essentially, accounts payable denotes what your business owes.
· Accounts Receivable
On the other hand, accounts receivable refers to payments that you’re owed. Accounts receivable are basically just outstanding invoices, so this term essentially means what your business is owed.
· Amortization
Within the business loan terms vocabulary, amortization refers to the way in which a borrower pays off a business loan. If a business loan is amortized, then the borrower will make regular, scheduled payments that are of equal amount every time until the principal sum plus interest is paid off.
· Cash Flow Statement
A cash flow statement consists of all cash inflows and outflows that your business performs during a certain period of time. So, if you prepare a cash flow statement for last month, you signify how much income your business took along with all of the expenses your business had to pay.
· Fixed Interest Rate
A fixed interest rate remains the same during the entire life of a business loan.
· Grace Period
A grace period is a pre-determined amount of time following a payment’s due date in which you will be able to make due on your payment without incurring late fees.
· Insolvency
Insolvency is a business loan term that refers to the state of being unable to repay debts.
· Maturity
A business loan reaches maturity on the day that you make your last loan payment. That is, once you pay off the principal and the interest on a business loan, it has reached full maturity.
· Refinancing
Refinancing means to pay off your debt with a new, better business loan. By refinancing debt, you can essentially save your business tons of money in avoided interest.
· Unsecured
Unsecured refers to debt that does not have collateral backing it.
· Variable Interest Rate
As opposed to a fixed interest rate, the variable interest rate is an interest rate that will vary with market interest rates over the life of a business loan.
· Working capital
Working capital is all of your capital that your business uses in its day-to-day transactions. Essentially, that’s how much money your business has, minus the debt it has.
Bottom Line
So there you go! Aforementioned are the most common business loan terms to know. Now good luck!
What should you do if you’re having trouble paying off a loan?
Running a small business can bring many challenges, and one of them is not having enough money to pay for the necessary costs. There are many things that get affected when you fail to pay off your debts. Your credit score will be affected. Your credit score forms a part of your credit report which is employed by banks to make a decision whether to lend you money.
If you don’t have an emergency fund and are struggling to repay micro credit and make ends meet during these uncertain times, here are few steps to take:
1) Focus on your business’ sales
Find ways to usher in additional revenue for your business, like working additional hours or offering more products or services. In order to increase your earning capacity, try to start some side work as it will help you to gain more.
Some can be done online and have flexible hours. When within the process of paying off a loan, confirm that you’re doing all of your best to spice up a business.
2) Keep emergency budget
Try to create a “leaner” version of your typical budget, which is smart regardless of if you are currently facing hardship or not. But it becomes doubly important if your hours are cut or shifts are cancelled in the coming weeks.
Do this by taking into account the entire inventory. Circle the items that want so you'll see what proportion you'll realistically save if you pause subscriptions, limit travel and make affordable meals reception.
3) Lower your bills
By cutting your bills every month, you’ll have more cash to put toward your debt payoff. To avoid the late charges and high interests make your repayments on time.
If you have difficulty making the repayments, talk to your bank. Increase your regular repayments or make lump-sum payments when you have money to spare.
4) Lower your interest rates
Interests on loans or credit cards can make trying to urge out of debt appear to be running a losing race. The more you owe, the more interest you’re charged and therefore the more you owe. And round the cycle goes.
If you discover yourself with more debt from loans than you'll handle, a method to a minimum of start getting before that debt is to pay less interest if possible. Here are ways you would possibly lower your interest rates.
The Bottom Line:
You might need to earn more, spend less, or both. For quick results, the foremost common solutions include taking over extra work, cutting spending, instant business loan, and selling items you not need.
How unsecured business loan helps to overcome business challenges?
Ideas and strategic plans are the pillars of any start-up or small business. However, you’ll also need a gentle flow of funds, especially within the early stages, to show those ideas into reality.
Capital is crucial for emerging technology, choosing the right employees, and launching a comprehensive marketing approach to drive a place within the market. Entrepreneurs have been complaining about how hard it is to get a bank loan. Efforts by the new administration are slow to enhance the lending climate, too. Here are some of the challenges that small businesses face:
1) Cash Flow Challenge
Cash flow is a problem for several businesses, and while the cash fluctuations may only be small they will have an enormous effect on a business’ ability to run. Other small funding needs like covering orders and buying stock may mean you simply need a little amount of money to ascertain you thru.
2) Interest Rate Challenge
Many businesses take up huge business loans but when it comes paying interest on their loans. This is where most of the business makes mistakes. The standard interest rates are quite high and difficult to deliver on time. Sometimes even the duration of the interest becomes a problem as well.
3) Time Challenge
75% of people between age 25 and 34 aim at doing business and hence your application is within the queue. By the time you get communication, your competitors are going to be far ahead. Even if you wait you are not sure of getting approved.
4) Collateral Challenge
Businesses are short on collateral and banks like to see when they make a business loan. Simple as that, but small businesses have a collateral crisis. Many businesses need to pay a high premium because of their lack of collateral. Businesses got to believe building those assets if they need to become more creditworthy borrowers.
Unsecured Business Loans Will Help:
Unsecured business loans are approved primarily on your promise to pay the lender back - no more, no less. The lender will look at certain, significant factors which will indicate the likelihood and your ability to repay them.
1) Zero Collateral
If you'd wish to avail of this loan, you are doing not need any collateral, which suggests that you simply don't get to put anything as an edge with the lenders or traditional banks to acquire the loan, unlike the secured loans.
2) Short Term
The unsecured loans will have short term periods, unlike the secured loans. You need to repay this loan in a short period, thus making it easier for the businesses to clear the loan amount and dealing with the cash flow problem of small businesses.
3) Rate of Interest
You may want to consider going for an unsecured business loan in Mumbai when the purchases you need to fund are relatively small. That higher interest rate is significantly less painful when it’s being applied to a smaller purchase, which means that it should be less painful to pay back.
The Bottom Line:
Know how an unsecured loan can help your business take on new challenges with more flexible terms than traditional loans. There are a lot of options to study when it comes to business lending, but unsecured products can be a great option for the savvy business owner who knows how to turn a lender’s investment into great business results.
Tips to avoid filing taxes late
Prepare and pay your tax return in advance like one month before the due date
Add reminders on your calendar to help remember your due date
Have a designated person remind you about your tax return due date
Create a plan in case you forget to submit your tax return
How to avoid defaulting on a business loan?
If you run a small business, chances are you would have taken a business loan. You probably intend to pay off your business loan. But life can surprise you in a number of ways, right? A myriad of other things can happen when you run a small business. So, what happens in worst-case-scenarios? The prospect of defaulting on your business loan is a daunting one. Ultimately, you might default on your business loan and it’s important to know how that affects you, your finances, and your credit. Not shockingly, defaulting on a business loan definitely comes with consequences. The particulars depend on your situation such as the type of loan. But you can typically count on damage to your credit score. When lenders report missed payments to credit bureaus, it results in lower credit scores. This makes it hard to secure a business loan in the future. To make matters worse, your financial burden will probably grow if you default on a business loan.
If you don’t make a payment on time or if you miss making a payment, your business loan is negligent and late fees might be considered. Even if you are negligent on your business loan, you might still be able to avoid default. Keep reading to learn the steps to take in order to avoid default.
Understand your business loan and business loan agreement
A business loan must be repaid. So it’s very important to know the type of loan you are receiving. Also, understand the costs of getting the business loan, the interest rate, and the repayment terms for the business loan.
Manage your borrowing
It is recommended to create a budget in order to determine how much you really need to borrow. This enables to borrow only what you need to pay for your expenses.
Know your dates
It is important to know the dates for your EMIs. This is particularly easy where you get notifications on your mobile regarding payment dates and the amount is automatically debited through Electronic Clearance Service (ECS). Missing on an EMI does not mean you have been declared a defaulter of your business loan. But then, you will attract fines and fees for skipping a repayment on your business loan.
Keep sufficient balance
It is of much importance to have sufficient balance in order to ensure that you do not run the risk of defaulting on a loan. It is ideally advised businesses to keep three months of EMI as reserves to tackle loan repayments. Businesses can be cyclical or an unforeseen event may cause disruptions. Are you wondering what to do in such cases? Well, it is always advisable to have enough headroom to ensure your loan repayments are not missed.
Concluding Thoughts
If you’re struggling to repay your business loan, the worst thing you can do is nothing. As much as a Non-Banking Financial Company (NBFC) might genuinely care about your business, eventually, they want their money back. You are responsible for ensuring that they get their money back in a way that keeps your business intact.
Financial management lessons for every small business
If you’re a small business owner, financial management is one of the most important responsibilities. You must consider the potential consequences of their management decisions on profits, cash flow and the financial condition of the business. Each and every aspect of a business has an impact on the company's financial performance and must be evaluated and controlled by the small business owner. Described below financial management lessons can help you do that.
· Life Cycles of a Small Business
Most companies experience losses and negative cash flows during their start-up period. Financial management is extremely important during this time. You must make sure that you have enough cash on hand to pay employees and suppliers even though you have more money going out than coming in during the early months of the business. This indicates the small business owner must make financial projections of these negative cash flows so as to have some idea about how much working capital will be needed to fund the business until it becomes profitable. As and when a business grows and matures, it will need more cash to finance its growth. Planning and budgeting for these financial needs are vital. Deciding whether to fund expansion internally or borrow from small business loan lenders is an important decision to be made. Financial management is finding the proper source of funds at the lowest cost, controlling the company's working capital cost and not letting the balance sheet become too highly leveraged with debt along with an opposing effect of its credit rating.
· Micro Finance Management in Normal Operations
In normal operations of micro finance, a company provides a product or service, makes a sale to its customer, collects the money and starts the process over again. Micro Finance management is moving cash efficiently through this cycle. This means that managing the turnover ratios of raw materials and finished goods inventories, selling to customers and collecting the receivables on a timely basis and starting over by purchasing more raw materials. Meanwhile, the business must pay its bills, its suppliers and employees. All of this must be done with cash, and it takes astute micro finance management to make sure that these funds flow efficiently. Businesses must plan to have enough liquidity to weather any economic downturns.
· Filing and Paying Taxes
The government is always around to collect taxes. Micro Finance Management must plan to pay its taxes on a timely basis.
Bottom Line
So what’s the bottom line? Financial management is a significant skill of each and every small business owner. Every decision that a small business owner makes has a financial impact on the company and has to make these decisions within the total context of the company's operations. These lessons help you to be a financial management expert and availing a small business loan can put towards your small business’ future! You should definitely invest in the future of your small business. So what are you waiting for? Avail a small business loan
right away!