Business loans can help a great deal in improvising

Business loans can help a great deal in improvising, expanding, re-structuring your existing business to take it to next level.  I would like to re-iterate this point through an example where my friend could ripe the benefit from Business loan.

This friend of mine has 3 theatres in Bangalore, this is in existence since 20 – 30 years which has been managed by his father all these years.  These are quite a famous theatres situated in well know localities of Bangalore. Most of the hit movies like DDLJ, Top gun will be first screened in these theatres and attracts lot of crowed leading to good revenue.

My friend has started managing all these 3 theater’s since past year after we completed our post-graduation. He has realised the revenue is going down hill since past 5 years. The obvious reason was evolution of Multiplex. There are numerous new multiplex in town now with great sound quality, multiple shows on the same day in multiple screens, awesome ambiance etc which has drawn the attention of customers.

He soon realised that he needs to renovate his theatres to attract customers and get back to business in bang. This includes replacing the sound systems, upgrading the seating, tie-up with brands to set up food stalls and to be able to sell tickets online etc. Its no-brainer all this will cost him considerable amount, as most of his family money had gone into different investments he considered taking a business loan for that extra funding.

He did his research by looking for the best business loan in Bangalore, checked on the business loan interest rates and documents required for the business loan with that prepared a strong business plan with the money he would need, for what tenure does he need, how the money will be used, what is the repayment plan, what is the projected revenue etc . He made sure he had all the required documents ready which includes you’re his business financial details, complete account details, audited financial statements etc.

When he approached the bank and applied for Business loan, it got approved quickly as their business track record was very good and he had all the things in place. Now he is back to business equally competing with multiplex with good profits. I watched one of the recent movies here and should say the theatre is no less than a multiplex in ambiance, seating, sound quality etc, he has got best of products and brands. He is even able to complete the loan quickly by doing part payments now.

Hence taking the business loan is a very good idea if you are planning something similar. Below are few points which banks will look at while approving your loan.

1. Your ability to repay loans
2. Whether you are strong enough to withstand tough economic times and still stand tall
3. And, they want to see your passion and commitment to making your business succeed.