Building a Side Business with Loan Money: A Step-by-Step Plan

Building a Side Business with Loan Money: A Step-by-Step Plan

If you are looking forward to generating extra income, then setting up a side business could be the best way to do it. This would not only help you achieve financial independence but also allow you to pave a path for your future. However, finding funds for your business could be a daunting task. But there is one popular option to finance your venture and that is – a loan.

In this article, we would learn how you can build a side business with loan money. Here is the step-by-step guide for you to learn the process.

Also read: Top 7 Benefits of Personal Loan You Must Know

Creating a Business Plan

The first and foremost thing is to create a business plan. This you need to do before you start searching for a loan. Have a solid plan as it would serve as a roadmap for your side business. Here’s what it should include:

• A brief overview of your side business including your mission, goals, and objectives
• Market analysis
• Details about the organisation and management
• Product or service description
• Marketing strategy
• Financial projections

Also read: Minimum Salary Required to Get a Personal Loan

Determining the Loan Amount

Now you have a business plan to look up to, it’s time for you to understand how much money you need to start your business. And then check how much you have in cash and how much you need to get with a loan. Once you have determined the loan amount, create a budget and include the costs for the following:

• Equipment and supplies
• Inventory
• Marketing and advertising
• Legal and accounting fees
• Rent and utilities

Add up all these costs to determine the total amount you’ll need to borrow to start your side business. Be sure to account for any personal savings or investments you plan to use as well.

Also read: What are the Various Types of Personal Loans?

Researching Loan Options

Now, it’s time to search the loan options you can have to avail the loan. You can go with the following types of loan to begin your venture:

• Personal loans (loans based on your credit score)
• Business loans (specifically designed for businesses and may have lower interest rates)
• Microloans (Small, short-term loans designed for entrepreneurs)
• Peer-to-peer lending (borrowing money from individual investors through online platforms)

Note: Do not forget to compare the interest rates, repayment terms, and eligibility requirements before applying for a loan.

Applying for a Loan

Now when everything is set, you need to apply for a loan. Once you have decided on the loan option, contact the lender and provide your business plan, financial projections, etc. Unless it is a personal secured loan, you may also need to provide collateral to secure it.

Also, make sure you are prepared to let the lender check your credit history and financial background. This would help them understand your repayment capabilities. If your credit score is low, you can consider seeking a co-signer to enhance your chances of getting the loan.

Managing Loan Repayments

Once you have got the loan, make sure you stick to your budget so that you can manage your loan repayments effectively.

How to Apply for a Loan?

Though there are dozens of options to apply for a loan, Airtel Finance is one of the simplest options to apply for a side business loan. With no strict EMI schedules and flexible loan repayment options, it is your financial solution. You can apply for Airtel Flexi Credit on the Thanks app and complete your loan application process digitally. Here’s how to do it:

• First, download and install the Airtel Thanks app from the Google Play Store or Apple App Store
• Sign in or register with your mobile number and OTP (one-time password) 
• Go to the app’s main menu
• Find the ‘Airtel Finance’ section
• Explore loan options
• Check Eligibility
• Gather required documents
• Fill out the application form
• Upload documents
• Submit your loan application
• Wait for approval
• Upon approval, receive funds

 However, do read the terms and conditions carefully.

Conclusion

By now you should have understood how to secure a loan to build a side business. With the above-mentioned method, you can avail of Airtel Finance loan money through the Airtel Thanks app and get the funds in your bank account. So, what are you waiting for? Get going now and secure a loan today.