Turnover, or the total revenue your business generates, is a critical factor when applying for a business loan. Here’s why it matters and how you can make it work in your favor.
Lenders use turnover to assess your business’s financial health and its ability to repay the loan. A higher turnover indicates steady cash flow, which reassures lenders about your repayment capacity. If your turnover is low, lenders may perceive a higher risk and either reject your application or offer less favorable terms.
To improve your chances of loan approval, focus on these key areas:
- Increase your turnover visibility: Maintain detailed records of your revenue, including invoices and receipts, to demonstrate your business performance.
- Optimize your operations: Reduce inefficiencies and maximize productivity to boost revenue.
- Choose the right lender: NBFCs like BIZLOAN specialize in assessing MSMEs holistically, considering more than just turnover.
Remember, turnover is only one piece of the puzzle. A strong financial plan and proper documentation can complement your revenue and secure the loan you need.
