Irrespective of the size, every business requires funds to meet various requirements. Money may be needed to meet regular working capital requirements, or to buy equipment, or for expansion.
You need to have an understanding of the different types of business loans to ensure that you are able to avail funds when needed. Here are four primary types of loans available:
This is a customized loan offered for businesses that require funds to meet their working capital needs. This type of loan ensures your business may continue smooth operations without facing any liquidity issues. Working capital loans are sanctioned quickly and do not require any security. The entire process from eligibility to sanction is quick, simple, and hassle-free.
Whether you want to purchase, lease, repair, or upgrade any equipment or machinery, these loans provide you with an easy means of finance. You may avail this type of business loan to expand operations or to buy additional machinery to fulfill a large order. Machinery loans give you the flexibility of acquiring the necessary equipment without additional collateral.
Several women are becoming entrepreneurs and to boost their ventures, lenders now provide special loans to them. Non-banking financial companies (NBFCs) offer affordable business loan interest rates for women who need funds to meet their business requirements. The entire procedure is quick due to minimal documentation and simple eligibility criteria. Additionally, lenders offer flexible repayment tenure of up to eight years to ensure women entrepreneurs do not face any difficulty while servicing the loan. The loan is sanctioned within 24 hours and requires no collateral or guarantors.
The number of micro, small, and medium enterprises (MSMEs) is growing in India due to various government initiatives. Growth in this segment will help increase employment and also boost the domestic economy. To support the growth of the MSMEs, lenders offer small business loan at competitive rates and attractive features. The money may be used for any purpose such as meeting working capital needs, purchasing new equipment, or paying for other expenses. The loan provides you with the flexibility of using only the amount needed and paying the installment only on this amount. This helps in reducing your installment by up to 45%.
A need for funds may arise at any point and it is recommended you stay abreast of the various options that are available to you. Comparing different options offered by the lenders will help you meet your fund requirements without any delay.