Small Businesses play an important role in the development of the economy. To offer a helping hand, the Government of India is funding small businesses through various schemes and programs aimed at encouraging entrepreneurship. Government of India is taking these initiatives as economy of any country depends on its service sector but small businesses add value to the overall economic growth of the country.
Before you apply for a small business loan, its important you to know the following types of loans you can avail.
These are long-term, government guaranteed loans.
Business Term Loan
Just like a traditional bank loan, you can borrow an amount, which will be given to you upfront. However, in this type of loan you will have to return that money within a specified period.
Small Business Start-up Loan
It provides capital new businesses the capital to grow. Business credit cards loans and equipment loans are great startup loans to boost your business.
Personal Loan for Business
These loans are helpful for individuals who run companies that have no financial history. Plus, personal loans have lower rates of interest than business loans.
With equipment financing, the lender helps you front the cash for purchasing equipment for your business.
Small business loans help you secure your finances, while you keep your entrepreneurial spirit high.
Before you apply for a loan, here are a few tips for small business loans that you should be aware of:
Find the right lender
You can approach your traditional banks or other popular online lenders that offer fast business loans.
Sort out Details
Prepare a report that includes your business model, business investments, growth graphs, etc. This helps in gaining the confidence of your lender and also reflects your authenticity.
Get Help Online
Various loan providers like Finserv MARKETS have financial experts who can guide you to fetch the right loan for your business.
Now that you have an idea of the different loans available for your business, and the important tips to keep in mind before you take one, it is equally important to know when to take a loan.
Following are a few scenarios when you can consider applying for a loan:
For future emergency
When your business is doing well, additional funding could be used as a back-up.
Upgrading or buying new equipment
To make your business more efficient, invest in equipments. You could apply for an equipment loan as well. For example, if you run a retail store and use trucks for delivery, a low-cost loan to buy new trucks would help you enhance your service.
While expanding your Business
If your business is running smoothly and your finances are good, you could use the additional funding to expand your business and open branches in various parts of the country.
For recruitment services
Physical expansion of any business requires hiring new employees and this can’t be done unless you have a very good ROI. By taking a loan, you will not only be able to hire people, but also pay them on time and this will help in boosting your profits, through which you can easily repay your loan.
For a cyclic business
When a company sees regular fluctuation in their profits, boosting the inventory is the best option. This can help in keeping the business afloat.
A good business idea must be backed by strong financial support. It is only then that a business booms and large-scale profits are achieved. Loans have come around as a saviour for the small businesses and therefore, you shouldn’t hesitate before applying for one.
A Bajaj Finserv Business Loan at Finserv MARKETS is quick, easy, convenient and comes with a host of other features and benefits that you can easily avail. Finserv MARKETS provides its customers with features such as flexible tenure, attractive interest rates and a host of benefits of business loan. So, if you are looking to grow your business or setting up a new one, apply for a business loan with us and let us help you realise your dream.
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