12 Important Reasons SME Business Loan Gets Rejected

12 Important Reasons Your Business Loan Gets Rejected

I have seen the happiness on the faces of many entrepreneurs when I placed loan sanction letter in their hand.  But loan rejection is not a happy state. Availing of loan is most business’s need for growth, especially for SMEs.  There is a limit up to which promoters can invest own capital in the business. Beyond a point, they need the support of external sources … Continue reading 12 Important Reasons Your Business Loan Gets Rejected

Interest Rate

The Impact of REPO Rate on Your Pocket and Business

REPO rate reduction of 0.25% is making the Indian investors excited. Investors believe this will trigger higher off-take of loans, higher economic activities. In reality, cheap money only can’t trigger more demand or higher capacity built up. There are several other factors. However, in this post, we will know about the RBI’s interest rate management. RBI manages liquidity in the market and inflation with REPO … Continue reading The Impact of REPO Rate on Your Pocket and Business

26 Sources of Capital – All You Need to Know

26 Sources of Capital – All You Need to Know

Once upon a time Capital used to be the scarcest available source of the business. Now the talent has taken over the top slot and capital has become abundant. But as it comes with multiple choices, which source and which type of capital is relevant for the business is another challenge. All forms of money are not equal. “Money is always eager and ready to work for anyone … Continue reading 26 Sources of Capital – All You Need to Know

Fatal Ignorance

Not Knowing Financial Ratios Can be Fatal for Your Business

“The number one problem in today’s generation and the economy is the lack of financial literacy.” Alan Greenspan Alan Greenspan is not true for personal finance but he is also right for entrepreneurs. Entrepreneurs whose success is determined by financial performance many times do not understand the nitty-gritty of finance. According to a recent survey by the National Financial Educators Council Americans squandered $280 billion last year due to poor financial understanding,. … Continue reading Not Knowing Financial Ratios Can be Fatal for Your Business

Asset Liability Mismatch

All Money Is Not Equal & Entrepreneurs Need to Know This

“We were not taught financial literacy in school. It takes a lot of work and time to change your thinking and to become financially literate.” Robert Kiyosaki M/S ABC Enterprise is facing a liquidity crisis. The bank has sanctioned them working capital loan. In an emergency, they used the borrowed money by way of working capital loan for buying land and machinery. Since the money required … Continue reading All Money Is Not Equal & Entrepreneurs Need to Know This

Cashflow Profit

Dear Entrepreneurs, Cashflow Is Not Your Money

One of my known entrepreneurs used to enjoy a lavish lifestyle, bought a costly car, indulging in family foreign tours, and everything peripheral was also indicative of good business and profit. After one year, I came to know that he defaulted on bank loans. His account becomes NPA, and several private loans recovery issues cropped up. His affordability of all the lifestyle he used to enjoy was … Continue reading Dear Entrepreneurs, Cashflow Is Not Your Money

Benefits of Shorter Cash Conversion Cycle

CCC is the Ratio Every SME Needs to Focus On

Your heartbeat, blood pressure, cholesterol all levels you keep under check. Though competitive business atmosphere makes it difficult to keep all these health parameters under your control. One business ratio though can help you to keep your above health parameters in check. Most SME suffers from a cash flow crisis. This is their daily struggle. The reason their health deteriorates is mainly be attributed to … Continue reading CCC is the Ratio Every SME Needs to Focus On