Chemical Business Opportunities: How to Start Chemical Business in India
Question: Hello sir, I and two of my friends want to start a trading business as of right now. We have decided to start a biochemical (food additives) trading business in Florida. I have done a fair amount of internet research and one of my friends is working for a food additive company. I wanted to know the procedure to apply for a business loan from some financial institutes. What are the basic criteria they keep to sanction the loan. What is the margin for the loan? Please give me these details.
Chemical Business Opportunities in India
Answer: Biochemical (food additives) business is a nice option to start in Florida. As mentioned in the question, research has to be done in this business. I would advise that not only this business but in every business and new venture, research is the most essential activity to be done. Inefficient research can draw the business to shut down in near future.
Experience is as important as capital. Experience helps to bring down many unnecessary costs which have to be bared in the initial stage.
The procedure to apply for a loan to some financial institutions is as below.
- Prepare a business project report
- Write down your business plan
- Give the assumed numbers of next few quarters
- SWOT analysis
- SLEPT analysis
- Study of Political and Legal factors
- Study of Technical and Cultural aspects
- Company’s profile
- Project back ground
- Capital structure
- Sales schedule
- Cost benefit analysis of the project options
These are the essential documents required for a business loan. The documents of the margin and properties should be presented. Normally banks keep 20% as the margin for a business loan. Other aspects depend on the bank’s policies.
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