Are you an entrepreneur who is looking for funds to start or expand your business enterprise? Do you face financial crunches while releasing employee salary, buying stock for the festive season, waiting for the payment from corporate clients, renovating, opening a new outlet or purchasing new equipment? For all these cases, a business loan can be your financial savior for stabilizing or while commencing your venture.
There are several sources of business loans such as banks, NBFC’s, Venture capitalists and government institutions- which work aside your business to secure its profitability. Apart from these conventional sources, there are digital lenders like Indifi which help you to convert business opportunities into success.
Online Business loans not only provide funds at the right time but they also come with a bouquet of other merits. Here is a look at them in detail:
Loan disbursal is hassle-free: You can avail a business loan without much hassle as digital lenders, as well as modern FinTech companies, are following a simple and secure loan disbursement process. In fact, business funds can be availed online without involving a collateral or guarantor. The borrower can fill up an application anywhere, anytime and upload the required documents on the lender’s website. After which the loan gets disbursed within 72 hours.
Accommodate different business requirements: Each business is different, and its requirements will also vary from its peers. You may require funds for further expansion, or for replenishing the working capital of your business. In such a case an unsecured working capital loan might be your answer to cope with operational expense challenges. No matter what the need there are exclusive loan product options for SME’S which have flexible repayment facilities and no penalties are charged on pre-closure of the loan.
Low-interest rates: Earlier taking a loan involved paying huge interest rates. But with the trend of SME financing business loans are being offered at low-interest rates. Financial bodies such as banks, some NBFC’s, government institutions as well as digital lenders like Indifi are facilitating business loans to small and medium companies in India at comparatively low-interest rates. In addition, Indifi charges a nominal amount as processing fee with zero hidden charges. Thus making Indifi, a trusted and preferred loan provider in the SME loan sector.
Useful for strengthening creditworthiness: Small and medium scale business ventures that wish to secure large-scale funding in the future, should opt for short-term business loans to strengthen their credit history. This is because young ventures usually face a hard time qualifying for big loans if both the owner and the business don’t have a strong credit report. Starting with a small loan amount backed by regular payments will construct a firm credit history of your business.
This practice will also help you to build your relationship with your lenders, thus giving you a medium to go back to your lender for a bigger loan amount. However, be careful about taking on more loan which you can’t afford. Delay in payments of a smaller loan may worsen your chances of securing future funding from your lender. Also, this situation will be unpleasant than the time when you had not applied for a loan at all.
Tax benefit: Borrowers (i.e., SME’s) have to pay interest on business loans which is a surcharge paid to the lender for utilizing the loan amount. Apart from this Business loans in India come with tax benefits such as Tax deductible expenses. The deductible expenses are mandatory expenses which are deducted from the revenue of the business before calculation of the total tax liability.
Overall, an online business loan has numerous benefits, and it can be availed quickly without any hassle. However, borrowers must pay heed to payment deadlines and make payments on time. Otherwise, they may jeopardize their future chances of getting a loan. Owners must be aware of their loan requirements and must also evaluate the condition of their business before opting for a loan.