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Things to Consider While Getting a Small Business Loan

By Finserv MARKETS - Mar 20,2019
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Things to Consider While Getting a Small Business Loan

Entrepreneurship is a dream that many wish to achieve. However, the groundwork that goes into making this dream a reality requires a lot of planning across one’s business model, staffing needs, financial requirements etc. Of all the above factors, availability of ready finance is the most important and critical to achieve success. So, if you are looking forward to establishing your own start-up, you will have to analyze the various financing options available to fund your business endeavour. There are a lot of benefits of business loan. But, before you dig into comparisons, there are certain things that you must take into consideration while applying for a small business loan. Some of those are mentioned below:

• Clarity of Vision
• Check your credit score beforehand
• Understand secured and unsecured loans
• Check the withdrawal and repayment option precisely
• Working capital loans

Clarity of Vision

For your fund request to be supported by a financial institution, It is essential that you have a clear idea about the purpose of availing the loan. Some of the purposes for availing a loan could be: hiring employees, getting new equipment, renting office space, etc. You must make a note of all such business requirements before applying for a business loan.

Check your credit score beforehand

A good credit score can boost your chances of getting a quicker loan approval. Additionally, it also affects the cost of borrowing by providing a loan at a lower interest rate. Therefore, before applying for a Bajaj finserv business loan, you must have a clear understanding about your credit score. It is advisable that you regularly check your credit score to ensure that any mistakes / errors are rectified and a healthy credit score is maintained.

Understand secured and unsecured loans

Financial institutions provide both, secure and unsecured loans. Secured loans come with collaterals, which act as a security measure to protect the financial institution in case the borrower is unable to repay the loan. Whereas, unsecured loans are collateral-free loans and do not require a guarantor.

With leading Non-Banking Financial Companies (NBFCs) like Finserv MARKETS, it is possible for small and medium enterprises to avail a collateral-free loan. Easy online application process and quick approval are some of the added advantages with NBFCs.

Check the withdrawal and repayment option precisely

While you apply for a business loan, make sure that its repayment doesn’t lead to financial instability in the long term.  Avail for a loan that offers you the best interest rates along with flexible repayment options. It is recommended to review the repayment terms carefully before applying for one.

Working capital loans

Out of the various business loans available, working capital loans are the most popular ones that can help finance the daily expenses of a small or medium scale enterprise. Apart from funding the day to day operations, working capital loans also act as a cash cushion for the business.

Online application, flexible repayment options, and minimal documentation are some of the other key benefits of availing a Bajaj Finserv Business Loan from Finserv MARKETS. All these features and benefits provide Finserv MARKETS an edge over other financial institutions in the market. Now that you are aware of all the important things that you must consider before applying for a business loan, you must make the right choice and settle for a loan that best suits your needs.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and 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