Running a small business isn’t just about passion, it’s about persistence, planning, and smart financial choices. MSMEs (Micro, Small, and Medium Enterprises) are the heartbeat of India’s economy, and yet, securing the right funding remains a challenge for many.

At Velicham Finance, we understand that every MSME has a unique journey. Whether you’re growing your agri-business, expanding your store, or starting something new, we’re here to make funding simple and supportive.

Let’s explore how you can secure loans, improve creditworthiness, and manage funds smartly in 2025.

Step 1: Choose the Right Loan for Your Business

No two businesses are alike. Your financing needs may depend on your stage, sector, and goals.

Here are a few common funding options:

Traditional Bank Loans

• Ideal for established businesses with solid financial history
• Includes term loans, working capital, overdrafts
• Offers lower interest rates but usually needs collateral
  
  NBFC & Fintech Loans
• Best for businesses seeking quick approvals with minimal paperwork
• Covers invoice financing, merchant cash advances, etc.
• Flexible and faster, especially for newer MSMEs
  
  Alternative Lending Options
• Peer-to-peer platforms, invoice discounting, or crowdfunding
• Useful for service-based or seasonal businesses
• Requires careful evaluation of terms and repayment plans

Step 2: Improve Creditworthiness Before Applying

Lenders want to trust that your business can repay. Here’s how to build that trust:

• Maintain a high CIBIL score by paying loans/EMIs on time
• Separate personal and business finances
• File your taxes and keep financials up to date
• Avoid taking too many small loans at once

Step 3: Manage Your Loan Like a Pro

Once you get a loan, the real work begins using it wisely and ensuring timely repayments.

• Use funds only for business needs like inventory, equipment, or hiring
• Set up auto-debits or reminders for EMIs
• Track monthly income vs expenses to avoid surprises
• Negotiate terms with your lender if you anticipate challenges

Step 4: Prepare for Unplanned Business Challenges

From market slowdowns to supply issues, every business faces tough months. Planning ahead can help you stay afloat.

• Keep a reserve fund for emergencies
• Don’t rely on a single client or product — diversify
• Get business insurance to protect assets and stock
• Stay updated with government subsidies or local Smart financing for MSMEs programs

Finance Is Not Just About Money It’s About Growth

At Velicham Finance, we believe financing should empower, not complicate. Our MSME loans are designed to support you with:

• Simple eligibility
• Easy documentation
• Fast disbursal
• Friendly repayment plans