Grow Your Business With Unsecured Business Loans
It doesn't matter if the business is an experienced one or start up, it needs sufficient funds for quality operation. The only difference between will be the sum of money required by each. How to raise such funds? Many might suggest you availing Business Loans, which is one of the best options available to businesses in the market. There are plenty of options including Commercial Business Loans, Short Term Loans, Flexible Business Loans and many more. However, one shall always choose the right one for them with the help of a financial expert.
Can You Grow Your Business With Unsecured Business Loans?
Many Business Loan options available in the financial market demands a collateral. However, new companies and even many old companies cannot arrange the same. Does this mean they cannot avail business loans? That is not true, one can avail Unsecured Business Loans. These Business Loans can be taken up without presenting any collateral to lender. These are perfect for small businesses.
How To Grow Your Business With Unsecured Business Loans?
Unsecured Business Loans help many in growing their businesses, how? the answer to this is explained in below mentioned points:
- Business Expansion: A large number of small business owners when look to expand their business, they opt for unsecured loan. It helps them in collecting necessary funds with ease. Financial support from NBFCs/banks like unsecured loans can support the urgent expansion needs of such businesses.
- Manage Cash Flow: Unsecured loans also helps many businesses in maintaining a smooth cash flow. The borrowed money helps many in paying rent, salaries, transportation costs, inventory cost and much more in case of shortage of funds.
- Equipment/Inventory Financing: One can lack fund to meet the equipment and inventory requirements of the business at any given time. Delaying the purchase of both can damage business immensely, this is the reason, one shall opt for unsecured loans. They can be availed in a hassle free manner, with easy return policies and flexible tenure.
- Marketing Cost: It is important to assure good adverting and marketing of a product to make it appealing to clients. To do so, one needs funds. This is when Business Loans help the owners of the businesses. One can avail Unsecured Loans, Commercial Business Loans and many more to meet such fund requirements of the business.
Now that you understand the benefits of opting Unsecured Loans, you will be able to choose wisely. However, you should always consult a financial advisor to understand the specific impact a loan can have on your business. Further, the application and approval process for unsecured loans in India is a bot different than Commercial Business Loans and other Business Loans. The eligibility criteria are a little stricter than the rest as lenders take great risk by offering funds to borrowers without collateral. So, get yourself informed and make the best decision for your business.
Why Taking Loans Can Often Be Beneficial For Businesses?
In this current situation where the covid-19 pandemic has enforced lock down in many parts of the world, it has become difficult for many businesses whether small or large to sustain themselves. In order to ease the economic situation in India, the government decided to bring out several relief packages for businesses and among them, the most significant proposal was the automatic Collateral Free Business Loans of Rs. 3 lakh crore.
Even so, not all businesses can avail this loan as only those are entitled to it who already have unpaid loans of up to Rs. 25 crore. The reason why this loan is not applicable for new lenders who want fresh loans is that, before giving a business loan, banks often want to know the borrower, particularly in difficult economic circumstances like today’s.
There are numerous Business loans in India like Quick Business Loans, Collateral Free Business Loans, Short Term Loans, MSME Business Loans, Small Business Loans, etc., which can be availed by the businesses. And when you take any of the loans from bank, that record goes into your credit profile. This way, banks can anytime assess your business and can check your feasibility as well as your ability to repay the respective loan. However, if there is not even a single loan taken by you, then you won’t even have a credit history which generally makes the lender reluctant to offer the business loan. It doesn’t matter how big or small is the amount of your loan; it all comes down to your ability and timely repayment of the loan.
Even some quick small business loans can also be very helpful in increasing your credit rating and eventually enable you to take bigger loans in the future. The key is to build up good relationship with the bank by taking smaller loans as suddenly approaching them for big amount of loan can reduce your chances of getting one. For this, there are many low interest business loans in India, commercial loan for small business, sme loans, flexi business loans etc., which can be beneficial for businesses to enhance their credit profile.
Loans for Startup Business in India
Almost every startup faces challenge of meeting operating cost and perfectly balancing them to further grow and expand. It is like you are hungry for funds but as you are new, so financial institutes are not willing to help you and take risk. In this case, under many schemes of Government of India, there are many banks that are offering Business Loans for Startups. Just like other banking loans, startup loans also allow a company to borrow from conventional lenders and run their operations.
Companies must keep themselves aware of the fact that perfect documentation is a key to access many funding options of the market. Startups must maintain proper documents, to increase their score and thereby chances of getting short term loans and long term loans. Here are the points that we suggest to all the startup entrepreneurs to focus on:
- Make a crisp and detailed plan for which you need funding.
- Cite down all the objectives that indicate the business growth and potential return scope.
- Have clear estimation of the funds
When it comes to availing MSME Business Loans in India, there are two types of loans that are extensively avails, they are:
Line of Credit: This one is more like a credit card, which instead of getting applied to individual personal’s credit, applies for the business credit. The main advantage of this loan is that borrowers need not pay interest of the taken loan amount for the first nine to 15 months and hence they can manage handling preliminary expenses of the newly started business.
Equipment Financing: It is a collateral loan that enables bank to charge a lower interest but with a higher risk. By taking this loan, a borrower needs to repay the amount that he has invested on purchasing the equipment by earning revenues from their business. The main advantage of this one is that tax benefit can be claimed by the borrower for the depreciation of the equipment.
Why You Should Take Startup Loan for your newly started small business?
- Minimal documentation time is required
- Entrepreneurs need to show evidence of their personal credit history
- Ease of repayment and flexible tenure
- Generally, any kind of security or collateral are not asked by banks for business startup loans
- Highly fair interest rates but it depends on the credit history of an individual
- Banks cannot claim on the profits earned by the business
- Tax benefits can be claimed by borrowers on the interest paid amount
- Supports in making credit score of the business
To know best deals on Startup Loans, you can contact TI Lending, which is an initiative of India’s leading B2B marketplace, to help businesses run and grow themselves. With association with its partner, this company supports in providing Quick Business Loans in India at low interest rates.
Bid Adieu To All Hesitation In Choosing Indian Banks For Business Loans
Business loans in India are seemed as the most beneficial way to enhance profitability if used in the most appropriate manner. Business loans support several needs in business such as maintaining cash flows, expanding business and investing in equipment that hints at bettering productivity and more. Borrowing money is not always getting your struggling business on the track. SMEs loans can be one of the smartest ways to unlock the key of profitability, growth and success.
Getting loans when you need them the most is very crucial. A lot of times either business persons fail to provide needed documents or lengthy approval process of some financial institutions lengthen the amount of time in getting loans. However, it is very important to be ready with requisite documents and choose a bank that is quick with its services when proper documents are provided.
It is not a hidden truth that SMEs and MSMEs form the strong pillars of the Indian economy. These massively contribute in solving India’s unemployment issue along with many significant improvements. After being so crucial for economy’s growth, SMEs and MSMEs endure the pain of consistent shortage of funds. MSMEs and SMEs in order to effortlessly execute different operations and go through expansion, need large amount of funds for which they consider business loans as the most reliable option. However, sometimes lack of understanding about procedure of business loans, high interest rates and various others factors build up fear and hesitation of small business owners in taking loans due to which their profitability gets suffered. Looking at this, a lot of Indian Banks have come up with business loans having benefits such instant loan approvals, affordable interest rates, flexible tenures for making repayment simple and more.
There are so many Indian banks that are strengthening their image in front of business persons by making the process of acquiring of business loans immensely easy. Now, taking Business Term Loan online or offline is not at all painstaking if you have all the required documents because there are so many India based banks, which have made their loan offering process quick and simple. The availability of commercial business loans at reasonable interest rates having long repayment options have opened doors for various companies.
4 Steps to Take If You Aren't Approved for an SBA Loan
One of the most famous ways small business owners finance their ventures is through the medium of commercial bank lending. They are offered to businesses at relatively low interest rates as well as flexible repayment terms. SBA Loans are recommended by many financial experts as the best options. However, it is not an easy task to qualify for such loans. The approval process is very stringent. This is the reasons, many applications get declined. Do not worry! There are ways you can improve your chances for the next time.
4 Steps to Take If You Aren't Approved for an SBA Loan
Let us tell you what should be your next steps after your SBA Loan application is not approved. One should follow our below mentioned instructions carefully:
- Determine Why The Application Wasn't Approved: According to the Nav’s Small Business American Dream Gap Report, more than 45% of the applicants are denied financing. Many of which do not understand why it was rejected. This is the reason, you should determine what the cause for rejection was or you will end up making the same mistake the next time. There can be several reasons to this. For example, the lender may not be offering loans to your industry or you may not hold a strong credit score. It will be good if you pin point the issue and work on it. You can request a written letter of explanation from the lender to understand the issues clearly. Find a lender that will give you a chance.
- Improve Your SBA Application & Reapply: After understanding the issues, one shall strengthen their application by showing your financial records and an excellent business plan. Improvement is the key. Pay attention to details; make sure every claim on your application is supported by proper documents. After confirming all this, you should reapply.
- Understand Your Business Credit Score: Many lenders prefer not to finance businesses or business owners that have a weak credit history. This is why; you should keep a keen eye on your personal credit score. You should do necessary research to understand what credit score will be acceptable by the specific lender and check if yours matches it.
- Consider Alternative Business Funding Options: If the issue raised by the lender cannot be fixed in a short span of time and requires long term efforts, you shall opt for other funding options to meet your capital requirements. SBA Loans are not the only option available in the market. You can consult with a financial expert and find the right option for yourselves.
Conclusion: SBA Loans are attractive to businesses but they are not the only option available in the financial market. One can finance their business in many ways. So, do not let a rejection stop you. TI Lending is offering Collateral Free Business Loan in India.
Suffice Business Needs With Unsecured Business Loans
Many entrepreneurs pursue business loans for sufficing their additional financial requirements. There are times when even profitable businesses need to borrow some amount of cash for performing their expanding operations, pay rent or look out for other common expenses. You are not only one who wishes to borrow a loan amount for their business but cannot afford to place any collateral as security to the lender. To ensure that the absence of high-value assets as collateral in your business does not hamper your eligibility criteria for availing business loan, opting for unsecured business loan is something you should consider for.
With this type of loan, you can easily focus on growing and expanding your business. Apart from quickly availing the amount of business loan you wish to, you can have your peace of mind as your need not to part parting with your valuable assets. Let us look how you can avail unsecured business loan at an amazing rate of interest.
When it comes to starting a business or expanding an existing one, investment is always required. And, if you are wishing to borrow an unsecured business loan, you can also go for the short-term one as it will provide you with the funds to meet all your short term requirements. Thus, letting you run your business successfully without any pressure of repaying loan amount for long term. Repaying quickly while availing short-term unsecured business loan will help you get instant loan amount the next you apply for it.
Are you worried about your bad credit score? Worry no more because unsecured business loans allows the borrowers to avail a good loan amount despite their credit problems. Some other benefits of this loan type are listed below:
- Short application process
- Collateral is not required
- No risk of having your valuable asset taken away
- Easy eligibility criteria
- Short repayment deadlines
- Availability of smaller loan amount, etc.
Have some more queries? At TI Lending, we aim to support all the business runners running different businesses with our expertise on financing. We always consider the best option to render hassle free application for our customers so that they can avail collateral free business loan within the shortest time possible.
Are There Work-At-Home Business Loans?
Work-At-Home concept is fairly new to the world. However, it is growing with a high speed. Naturally, this has given push to the Work-At-Home Businesses. Unlike other businesses, these are not registered under the specific laws of the country. Though this flexible and comfortable business style is a new form of business, which will keep on growing. However, government does not provide any aid to such businesses as it prefers to support enterprises which generate employment and income that includes start-ups, small businesses, etc. Further, banks provide Business Loans to organizations who comply with their set guidelines. Do not worry; even if you cannot get a Business Loan, there are several ways to get the right financial assistance.
How Can A Work-At-Home Business Get Good Financial Assistance?
It is not an easy task but such a business can get a loan. However, it will not be a Business Loan. One can opt for the below mentioned loan options to support their home based business:
- Personal Loans: The best solution to the financial difficulties of a home based business is personal loan. As a work at home business does not require a large some of investments, one can rely on small loans. Getting a personal loan is much easier than getting a Business Loans in general.
- Home Equity Loans: If personal loan is not enough to support your home based business or you are working on a big project, you can always opt home equity loans. With just a small equity left on your property, you can easily avail inexpensive financing for your work at home business. Not just this, the repayment of this loan is longer than personal loan, which reduces the sudden burden off you. The cost is significantly lower as the rates associated with this type of loans are usually competitive.
- Loan Against Property: It is a secured loan disbursed against the mortgage of your property, it has competitive interest rates. Such rates are exceptionally lower than personal loans. The property can be residential, commercial or even a piece of land.
We know the journey is hard but we believe that the above mentioned options will make it easier for you to carry on. You can choose the MSME Business Loans that fits your need perfectly to support your home based business by relying on a qualified financial expert. What are you waiting for? It is time to increase your capital and reach the new heights of success.
