Benefits of Collateral Free Business Loan

Benefits of Collateral Free Business Loan

13 Aug 2020
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It is no easy task to establish and run a business. At all times, there are a number of priorities to be considered, factors to be accounted for and resources to be managed. As a result, business owners often find themselves face to face with a variety of different challenges. For most entrepreneurs, a prime challenge among these is that of meeting financial requirements. Be it for a long-term or a short-term goal, businesses are always in need of a trustworthy source of finance to ensure that operations run smoothly.

In today’s age, this need is fulfilled by trusted online business loans, such as those available on Finserv MARKETS, that can be conveniently availed and customised to suit the requirements of your business. These loans offer various lucrative features, such as nominal business loan interest rates and flexible tenures, that make them an ideal form of credit for businesses at a wide variety of stages. However, the feature that helps them stand out among other options is that they are collateral free business loans.

So, what are collateral free business loans and how can they benefit your business? Let us take a closer look.

What are Collateral Free Business Loans?

In order to help entrepreneurs meet the various expenses related to running a business, there are a number of business loans available in the market. However, a factor that keeps many business owners from considering business loans as an option is the requirement of collateral ie. submitting your valuable assets as security. It is in response to this dilemma that collateral free business loans have emerged as a popular lending option.

Collateral free business loans require no security from the business owner, and there is no need of nominating a guarantor. As long as your business is verified and has all the essential legal documents and income proofs in place, securing these collateral free business loans are a simple and straightforward affair. On reputed platforms such as Finserv MARKETS, you can avail such collateral free business loans at nominal business loan interest rates as well as a host of other useful features.

Benefits of Collateral Free Business Loans

Now that you have a better understanding of what collateral free business loans are, let us explore the many distinct advantages they offer over other forms of credit. Here are the benefits of collateral free business loans:

●  Requires No Security:

 As the name goes, collateral free business loans are free from any requirements of collateral from the borrower. They do not obligate the business owner to place his or her valuable assets and possessions at risk in order to benefit the business.  Therefore, by doing away with this obligation, these collateral free business loans allow entrepreneurs to rest assured and utilise the loan amount for business purposes without the fear of exposing their assets.

● Improves and Builds Credit History:

Since collateral free business loans do away with the need of pledging security, an emphasis is placed on another aspect for the borrower: credit history. Since these loans are unsecured, most lenders approve collateral free business loans only on the basis of the borrower’s clean credit history and a good credit score. Therefore, the opportunity of availing collateral free business loans is an excellent incentive to pay close attention and make the most of your credit history.

If you are a first-time borrower, collateral free business loans might also be a great place for you to get started working on your and your business’ credit score. You can avail this loan without pledging any security, and by making timely EMI repayments you can build your credit score over time and become a suitable borrower for larger loans in the future.

●  Makes Loan Approval Quicker:

When the lending process involves a security pledged by the borrower, it takes more time to process than a collateral free business loan. This is because a fair share of time is spent in evaluating the value of the asset or possession submitted as collateral and thereby determining the loan amount.

By doing away with this requirement, the lending process becomes simpler and therefore, your business loan amount can be approved and disbursed much quicker. With reputed platforms such as Finserv MARKETS, your collateral free business loan can be approved in a time frame as short as 3 minutes and be reflected in your bank account in just 24 hours

●  Minimises Documentation:

Business loans that require collateral often require the borrower to submit essential documents regarding the assets being pledged as security. This can make the entire application process quite cumbersome and lead to additional paperwork. On the other hand, collateral free business loans are designed to be as hassle-free and convenient to avail as possible, which includes doing away with the obligations of excessive documentation. In the case of collateral free business loans such as those available on the Finserv MARKETS platform, there is only minimal documentation required and the process can be completed entirely online.

● Offers Flexible Payments:

With traditional business loans, not only are you required to pledge security but are often also restricted by limited payment options. Most financial institutions and lenders that offer collateral free business loans today also offer entrepreneurs a variety of options to make repayments as seamless as possible. Collateral free business loans on Finserv MARKETS, for example, offer flexible loan tenures ranging from 12 to 60 months at nominal business loan interest rates.

Conclusion

Pledging security for business loans has long been a deterrent for business owners looking for credit and collateral free business loans have become the popular solution to this dilemma. By doing away with this requirement, collateral free business loans offer entrepreneurs the capital they seek without placing their assets at risk in the process. They also offer the opportunity to build credit history and experience the loan process with quicker approval and minimal documentation.

A notable example of a platform to offer such  business loans is Finserv MARKETS, a digital financial marketplace trusted by more than 100 million clients across the country. The collateral free business loans available on the platform are also accompanied by useful features such as flexible tenures and super-fast online loan processing.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition -- Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.