When you are after funding, it's important to know which financial metrics are most important for lenders. SIIA Advisory, as a business loan provider, primarily strives to solve the puzzle of getting business loans for our clients. 

In this blog, you’ll be guided about the major financial indicators you should be monitoring and how to present them if you are looking for short-term loans or any other form of financial support in Mumbai. 
 

The Key Financial Metrics You Should Know 

Lenders will consider these factors before you start making efforts to line up for any financial consultant in Mumbai.

Here are some of the most important metrics to watch for: 

1. Credit Score 

Credit scores are scrutinised closely by lenders; they look first at yours. Lenders give a higher score to a person, which reduces risk, and it becomes easier to get business loans in Mumbai. Your credit score should be checked and made sure that there are no inaccuracies that could spur a warning flag, as they say over at Lending Money, when getting a loan. 

2. Debt to Income Ratio (DTI)

The term for this ratio refers to how much of your gross monthly income is allocated towards paying on monthly debt. Lenders are more favourable (i.e., lower risk) on a lower DTI. A DTI of less than 36% or so is typically tolerated. 

3. Cash Flow Statements 

When you’re looking for a short-term loan in Mumbai, positive cash flow is critical. It guarantees the lender that a business owner has enough cash flows allowed for operational and loan payment costs. If you don’t have the cash flow statements, you’ll lose the lender’s confidence about your financial status very quickly.

4. P&L

The P&L statement is the analysis of profit and loss generated by your business during a specific period and includes income earned and cost incurred. It is for financial institutions if revenue is rising at a reasonable level and expenses are manageable. 

5. Balance Sheet

The balance sheet gives the data of what assets, liabilities, and equity you own at a certain period. Not only is it easy for lenders to quickly assess the financial health of your business, but it also helps compare the equity position in your business against your assets and liabilities. 
 

Reporting Your Financials 

The next thing is to present the information gathered after you have completed all the finance and chosen the business loan in Mumbai from a professional firm or SIIA Advisory. 

1. Arrange the Papers 

Make sure all financial records are in one place, and within easy reach. This means credit reports, cash flow reports, P&L statements, and so on. It is professional and ready to be neat. 

2. File an All-Inclusive Business Plan

Draft a good, comprehensive business plan as you prepare your loan application. This needs to explain what your business is about, how you’re going to grow it, and how you plan to use these funds. This will help you illustrate how you’ve positioned your business to succeed by monitoring important financial metrics.

3. Maintain Integrity

When you are looking for funds from lenders, integrity is a must. Be transparent about your financial past, including any challenges you’ve faced and the strategies you’ve taken to deal with them, or that you plan to take to deal with them. Lenders favour businesses that tell it the way it is. 
 

Transparency: its importance 

It should be noted that not all DSA / Financial advisors/ consultants are transparent about the interest rates. Perhaps some will agree to a percentage between 10 to 13 percent interest rate at the time of documents collection, only to find out later the disbursement is done at 15-18 percent.

Lack of clear feedback is also responsible for placing you into unnecessary debt that could ruin your repaying abilities. Additionally, there can be hidden fees or unexpected terms that can disrupt the relationship between borrower and lender, so it is very important for businesses to partner with those that can always stick to the integrity of the lending process. 

We at SIIA Advisory are committed to total transparency so our clients can make informed decisions without any surprises. 
 

Conclusion 

Filling out an application for a loan is a small part of the process; the art of getting a loan lies in understanding certain numbers that help alleviate the concerns of the lenders. Don’t compromise and only use the minimum required from the lender. 

Keep track of your credit score, debt ratio, cash flow, profit margins, and other key metrics, which will only help you when a lender reaches you for financing. 

SIIA Advisory—one of the best business loan providers in Mumbai—is ready to assist you with whatever short-term loans in Mumbai or long-term funding is required. Knowing your cash flow position, using our expertise, your funds will be available when needed for expanding and effectively running your business.

Understanding these numbers not only helps you acquire loans but also positions your business competitively within Mumbai's market landscape. 

Don’t wait any longer—get in touch with SIIA Advisory now to discover how we can help you secure business loans in Mumbai without stress!