Commercial Lending Training for Budding Entrepreneurs

Commercial lending training is a form of the training solution. The Covid-19 Pandemic continues to unroll. With business activities slowing down, few startups and small businesses are seeing lower revenue resulting in less cash flow. During the economic variability, managing liquidity positions and cash can turn out to be crucial with every passing day. This pandemic is significantly impacting businesses and the economy. 

Under Aatmnirbhar Bharat Scheme, the Government of India has taken several essential steps to promote the local economy by bringing forth special and economic comprehensive schemes/packages such as; the free collateral loans in favor of MSME’s which will have a tenure of 4 years. Businesses with a turnover of up to Rs. 100 crore are eligible for the scheme, and any lending covered under the scheme will be 100% assured by the government. The MSMEs will get the option of up to 12 months of the moratorium period. Under the scheme, the loan amount worth Rs 3 lakh crore will be provided.

Big enterprises can use their resources to overcome the pandemic’s challenges, but the major challenge lies with the small business to make ends meet. Starting a business is a significant achievement for many budding entrepreneurs, but maintaining the same is a task. There are many standard challenges every business confronts; one most important issue is finance management. Saving money and cutting the cost can be tricky, especially for small business enterprises. Acquiring good and reliable financial assistance is the pressing priority for any upcoming enterprise. Though Government has taken the lead in providing free collateral loans to MSMEs, yet as their mentor, we should always emphasize keeping avenues open for funds or capitals. One such important method is “Commercial lending training”.

Commercial Lending Training Method

Under the method of ‘Commercial lending training’, business enterprise borrows money to pay for their day to day business expenses, real estate, recruitment process, equipment, and assets purchase required to expand the business. Loans can range from short to long term funding loans.

Commercial lending training is one of the most important ways of securing funds for business. Training the budding entrepreneurs to secure themselves as sources of funding is our priority as their mentor. Those who have recently entered the business world needs to know how to get it going from the scratch; however, it is nearly impossible for any business entrepreneur to rely on his resources to go at this venture with flying colors without any financial aid. It takes a long time for a new business to bring it in a profit stream. When it comes to commercial lending training, the money is secured by hard collateral. It may have a very stringent process of loan approval. Because of the complicated steps and formalities involved with other types of small business funding, people prefer this mode over any different manner to get their desired amount of money faster.

Our Organization is working consistently to overcome these testing times. We are operating jointly with small businesses and earnest entrepreneurs to help them mobilize, stabilize, and secure employment.

Key Takeaways of Commercial Lending

Specific important key takeaways of commercial lending:

• Source– Commercial lending is often done from a financial institution such as banks, etc., which helps the business to expand and grow. 
• Term of the loan– Any money that you borrow is required to be paid back. If not paid back on time, there might be inevitable repercussions of the same. Each loan taken will give you a specific period within which it is required to be paid back. Commercial lending is most often used for short term funding needs. Usually, one to five years is conferred upon the businesses to pay back the borrowed money. 
• Guarantee or security– It is mostly in the form of hard collateral such as property, plant, equipment that the bank can confiscate from the borrower in case of any default. Often companies are required to give financial statements to know their ability to pay back the loan.
• Use of borrowed money– Money borrowed from any financial institution is typically used to fund significant capital expenditures and cover operational costs that the company may otherwise not be rich enough. Commercial lending is also needed to help businesses satisfy commercial orders of high value.
• Role of Financial advisor– Much needed component of any business enterprise; they instruct the entrepreneurs on what to borrow when to borrow and how much to borrow.

Our Aatmnirbhar Sena is Increasing Awareness about Commercial Lending Training

Highlighting the advantage of commercial lending training, we are making efforts to emphasize the importance of its training in budding entrepreneurs’ lives. We, as an organization is trying hard on spreading the importance of commercial lending in business enterprises and providing commercial lending training.

To encourage the commercial lending training, we have conducted several seminars, arranged mentorship programs, and quenched the budding entrepreneurs’ curiosity about any doubt that might arise in their minds. Our agenda of making them flourish can only be achieved through small-small steps of bringing them in sync with the upcoming technologies or methods of succeeding.