Funding Proposal (New Business)

Prerequisites

1. CIBIL score of at least 650 has to be maintained as the Banks/Financial institutions typically examine the personal credit report of the business owner when he/she applies for a loan.In the case of an existing business, CIBIL score of the firm/company is also required.
2. Income Tax returns of previous 1 to 3 years are required in case of existing businesses.
3. The age of an entrepreneur should be between 18 and 60 years.
4. Adequate knowledge about the source and  availability of raw material.
5. Study market trends and also do competitive analysis.
6. A suitable and adequate space with basic facilities such as water, power, approach road, labour etc.
7. Type of Business entity should be finalized.
8. In case of an existing business applicable compliances, registration & licenses should be ensured.
9.  A document that gives a brief description of the business activity.
10. Support or advice from an expert who from the similar business activity,
11. Margin money in the range of 15 – 25% of the project cost for financial institutions.
12. In case of funding, Banks/Financial Institutions require ,

• 2 guarantors,
• Collateral security if the loan amount is higher (e.g. NA plot, house, FD’s, Insurance policies etc.)

Inclusions 

1. Creating Project Report for working capital as well as term loan.
2. Viability Assessment.
3. Help in choosing better option of funding institution type for the business.
4. Assisting the entrepreneur with documentation, sequencing of documents etc. in order to make a fund ready proposal file.
5. If an entrepreneur comes with a specific funding scheme, deAsra will study the scheme and work on the fund ready loan proposal according to its terms and conditions.
6. If the lending institution has any queries on the proposal prepared by deAsra, deAsra will provide telephonic support to resolve the queries.
7. Ratio analysis, cash flow and fund flow statement, repayment schedule are included in the Project Report prepared by deAsra

Exclusions

1. We do not guarantee the sanctioning of the loan/s from any financial institutions.
2. Entrepreneur may approach a suitable financial institutions and submit the fundable project report prepared by deAsra.

Information required for preparing a Fund ready proposal:

1. Name and type of business entity.
2. Brief description of business activity.
3. Bank account details e.g. saving account/ current account- name of the bank.
4. Details and cost of assets to be acquired.
5. Actual/ projected sales per product- per month.
6. No. of working days in a month and year.
7. Raw material consumption details per product- per month.
8. Details of other income and expenses, if applicable.
9. Holding levels and stock value of finished goods and raw material.
10. Estimated level of debtors and creditors (in months).
11. Details of monthly expenses (electricity, rent, salary, repairs and maintenance, selling and transportation, other administrative charges, etc.)
12. In case of an existing business, the performance report of the last 2-3 years is required. It should include sales, profit/loss, capital, net worth, assets etc.  (This should be supported by the financial statements of the respective years)
13. In case of existing loan details such as rate of interest, disbursement date, tenure of loan, EMI, of outstanding loan amount are required.

List of documents to be submitted while applying for funding (New Businesses)
A.  When applying for Term Loan*-
*(Term loan is the funding required to purchase Fixed Assets of the business)

1. Fund ready project report.
2. KYC documents of all the applicants – PAN card, Aadhar Card, address proof.
3. Address Proof of the business premises-
   1. In case of own property- Index-II, sale deed etc.
   2. In case of rental property- Light bill & rent agreement.
4. Two passport size photographs of the applicant.
5. Form 16 of the applicant (In case they are salaried individuals).
6. ITR for the past 2-3 years.
7. Latest Bank statement for the last 6 months.
8. Shop Act/ Gram Panchayat NOC.
9. Business specific licenses for example FSSAI License/Registration, FDA license, TRA license, IEC code (if applicable).
10. Quotations of machinery, equipment, furniture & other assets to be purchased.
11. Work orders (if any).
12. Letters of support, reference.
13. Copy of Agreement with the suppliers or customers in case of special arrangements. Also, wherever necessary copy of licenses/permissions for such assignments.

B.  When applying for Cash Credit (Loan for working capital)

1. “Working capital Assessment Statement”, which is a part of “Fund ready  Project Report”.
2. Quotation of major raw material/tradable stocks .

Rest of the documentation for Cash Credit remains same as that of the Term Loan.
List of documents to be submitted while applying for funding (Existing businesses)
A. When applying for Term Loan*-
*(Term loan is the funding required to purchase Fixed Assets of the business.)
1. Balance sheet and profit & loss statements of the last 2-3 years.
List of documents remains the same as that of Funding for New Businesses. For the rest of the documents refer to the list of funding for New Business. 
B. When applying for Cash Credit* (Loan for working capital)-
*(Cash Credit is a loan taken to fund the working capital requirements of the business.)
Following documents are required when applying for Cash Credit:
1. Statements of stock, debtors & creditors as on the date of the existing business.
List of documents remains the same as that of Cash Credit for New Businesses.
For the rest of the documents refer to the list of funding for New Business.  
Documents of guarantors (For both New and Existing businesses)

1. KYC documents of guarantors (Identity proof and address proof)
2. Passport size photographs
3. Form 16 (In case they are salaried individuals).
4. ITR for the past 2-3 years.
5. Balance Sheet and Profit & Loss statement of the last 2-3 years (In case of an existing business).
6. Bank statement of the past 6 months.