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Small Business Loans: The Basics

By Finserv MARKETS - Apr 23,2019
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What is Small Business Loans

A business loan for your small business nowadays has become a necessity. Loans are the best way to ensure that your business has enough funds, not only for a good start but to run its operations smoothly, and perhaps even expand later on.

There are a lot of misconceptions regarding small business loans. Some say that there are a lot of benefits in business loan sanctioning while others are of the opinion that it is very hard for sanctioned. Let us take a look at the basics on how to secure a loan for a small business.

How to Acquire a Small Business Loan?

A Business Plan

The first step that every small business owner should keep in mind is to have a well-written and detailed business plan in hand. It should have details regarding the source of funds and should be approved by a professional accountant. The business plan should include a market study and feasibility analysis to show that you have done the necessary research to ascertain that your business will be successful.

Debunking Common Myths

There is a common myth that it takes a long time to apply for a loan and get it sanctioned. The truth is, most banks can approve loans quite quickly. Unsecured loans for example, may take as little as 24 hours to be approved. The eligibility criteria for loans is also not too difficult to attain; you may only need as many as 2 documents in order to acquire a small business loan.

A perfect credit score is also not needed to secure a bank loan, although banks do make concessions and approve your loan requests considering your financial situation and business plan.

The Right Loan for Your Business

Most banks and financial institutions will allow you the flexibility to choose the type of loan that is right for you.  As a small business owner, you should weigh your options, considering the needs of your company and the funds that are required. Think about how much you would need to invest in infrastructure, machinery repair and maintenance, expansion of operations, staff salaries, etc. and then pick the best option for your loan.

It is wise to select flexible plans that allow you some leeway on the EMI repayments without putting you in a financial crunch.

Try to opt for Collateral-Free Loans

Some banks offer loans that do not require you to put up any collateral as security. This means that you do not have to put your business or financial assets on the line to take a loan. Moreover, since there is no process for approval of your assets, the loan sanctioning will be much faster and more hassle-free.

Small Business Loans: The Right Way Forward for Your Business

Small business loans are a lifesaver for any new business owner. They give you the option of focusing on the running of your business without worrying constantly about funding. Moreover, you do not have to stress about paying back your friends or family and you can keep your lifetime investments safe without digging into them for your business activities. Apply for a small business loan and secure your business today.

So why wait? Head over to Finserv MARKETS and apply for business online with us, today!

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522