Did you know lenders check your average bank balance (also known as your minimum account balance) when you apply for business financing?
They do this to check whether you always have enough cash in your bank account to repay the EMI if they decide to lend to you. It also lets them know your business is not a cash crunch and that you have healthy cash inflows.
But is there an ideal account balance you should have? No.
Your average bank account balance depends on who you bank with and what loan amount you need. If you’re using a current account for your business (which you should), the terms of that account dictate how much balance you need to always maintain in that account. So, when you’re applying for a business loan, this account condition works in your favour, ensuring you always maintain a steady bank account balance.
Head over to our blog post to learn more about how your average bank balance impacts your business loan eligibility.
When you apply for a business loan with CreditEnable, you don’t have to spend time comparing the eligibility criteria for different business loans products. Our award-winning technology assesses your business needs and matches you with loan products you meet the eligibility for, saving you time and trouble!
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