Match the facility to the need. Use a cash credit or overdraft limit for recurring working capital and a term loan for fixed asset purchase — mixing them up strains cash flow.
Banks read your bank statement more closely than your balance sheet. Route your business receipts through the account, avoid cheque returns and keep a healthy average balance.
Keep GST returns and IT returns consistent. Mismatched turnover between GST and ITR is the fastest way to a rejection.
Explore MSME schemes such as CGTMSE-backed loans that reduce the collateral requirement for growing units.
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