In a competitive business environment, growth is the key to a successful enterprise. To bring about growth, we as entrepreneurs are in constant need of resources. Finance is the fuel that drives business. Whether we wish to expand to a new location, purchase more technologically enhanced machinery for higher production, or hire more manpower to start a new unit, we need more finance. Sometimes we may have personal sources for such finance. But if our sources are exhausted, we always have the option to avail of a business loan from a traditional bank or a non-banking financial company (NBFC).
A business loan is an unsecured loan. That essentially means it does not require any type of collateral. It is given based on the creditworthiness of the borrower. As of today, several banks and NBFCs offer such loans at competitive interest rates to eligible borrowers after completion of a simple procedure and filing of necessary documents.
There can be several benefits of availing a business loan. Some of them are as follows:
- Business expansion: Infusion of more cash makes it possible for us to expand our business. For instance, we can develop and introduce new products in our existing market, or we can promote our existing products in a new market through a marketing campaign. The working capital requirements can be met by availing of a business loan.
- Full control and no profit-sharing: If money is raised through equity holders or partners, they may interfere in business decisions. Moreover, they will also take a share in the profit. Banks and NBFCs on the contrary, don’t dictate how we use the loan money and are only interested in the loan repayment on the basis of the agreed terms and conditions.
- Improve credit score: As borrowers, if we make our payments on time and in accordance with the agreed terms and conditions, our credit score improves. This helps us to get more financing at lower rates of interest in future, if the need arises.
- Hassle-free application, no collateral and low interest rates: Applying for an unsecured business loan is a hassle-free process. A business loan can be approved within a few hours if all our documents are in place. There is no requirement of collateral and banks and NBFCs charge a very competitive interest rate. Moreover, many NBFCs also offer loan options with no pre-payment charges or processing fee.
- Flexibility: Most lenders offer a variety of options such as business loan, term loan, machinery loan etc. We can apply for either one or more of these loans, depending upon our requirements. We can also opt for a repayment schedule that is most suitable for us. The rate at which monthly payments are made can also be increased or decreased depending upon profitability of our business.
- Tax deductions: The interest payable on a business loan is often tax-deductible, depending upon the interest limit and eligibility which can be checked at the time of applying for the business loan.
Many of the aforesaid benefits can be availed of by applying for a business loan from Finserv MARKETS which provides loans of up to Rs. 75 lakhs at low interest rates to meet our short or long term funding requirements. Finserv MARKETS offers a wide range of business loans and flexible plans that are easily accessible after a fast online process and without any collateral. For more information or to apply for a business loan online, you could log-in to the Finserv MARKETS website.