Whether you’re laying the foundation for a new business or need capital to maintain inventories, facilitate an expansion, or purchase equipment, a small business loan can help your business venture transition into a bigger enterprise fluidly.
A small business loan may not be your emergency but it will be a great investment for your startup. It is so, you can invest a bit more in the latest technologies, and try your luck on a separate portal of marketing.
While you can’t have full control over a lot of factors that affect your business, you can secure it financially with a business loan. These loans may bring you the resources to boost up your sales. Moreover, sometimes the commercial loan rents are pretty decent. Take a look at 5 reasons why opting for one is a wise move.
1. Low-Interest Rates
First and foremost, when evaluating any source of credit, do take a good look at the interest rates for a business loan. As compared to credit cards or any other sources of credit for that matter, business loans are offered to you at extremely low interest rates, making them an excellent choice for your business venture.
Also, compared to other sources of credit, a business loan offers access to a higher sum of money. If the business loan interest is a major cause for concern, fret not, because this source of funding amounts to a minimal financial burden.
The low-interest rates are also paired with comfortable tenure where the businessman can easily pay the loan back. However, there are some banks which take a mortgage of their business They often tend to involve closely in the matter of property and business.
2. No Need to Put up Collateral or a Guarantor
If you thought to get a loan involved putting up collateral against the amount of your loan or nominating a guarantor to share the financial risk, we urge you to explore business loans that don’t require you to do either.
Most of the small business loan does not have to get the approval of any guarantee. For companies which are already established with the banks, are the strongest applies for this kind of loans?
While putting up collateral or providing a guarantor may have been a norm in the past, there exist business loans today that put your needs ahead and give you easy access to credit without the additional worry of procuring collateral. There are various ways to obtain unsecured business loans with bad credit score. It may be through short-term loans, equipment financing, or a business line of credit. For lines of credit, the trick is to withdraw only the certain amount you need and repay weekly or monthly until it reaches its maturity.
3. They Offer Great Versatility
Right from the amount you want to borrow and the tenure of the loan to business loan repayments, they can be fine-tuned to suit your needs perfectly. And these loans often do not feel so much because you pay in installments with minimal interest because of the commercial loan rate.
Additionally, market fluctuations and the stability of your business are key factors used by institutions. These fluctuations and balances of your company, determine charges and fees to make them a viable and fair credit option for every entrepreneur.
Small business loans are very much flexible according to the tenure, commercial loan rate, and modes of payment. That makes these loans so desirable to small business owners. However, some small business loan also requires a mortgage. In that case, you should see if there are other flexible options for you, before going for the mortgage loan.
4. Access to Pre-Approved Offers
On the basis of your credit history, promptness with regards to payment, and your income and cash flow, several business loan providers will present you with pre-approved offers. If your financial practices are stable, these offers give you access to top-up loans and a reduction in the rate of interest from time to time.
For an entrepreneur who has financial discipline, this comes as an added advantage. Entrepreneurs actually invest in shares of a lot of companies, so in this way, their credit history always remains balanced.
This gives them an added advantage in small business funding from banks. When there is a healthy relationship between the bank and its customers, it is easy for the bank to give pre-approved loans. These pre-approved loans also provide to be much more helpful in getting small business funding in emergency situations.
5. Benefit from Flexi Loans
Depending on the credit provider you choose, your business may even stand to benefit from a Flexi Loan. For example, at Bajaj Finserv, you can sign up for a Flexi Loan Account that gives you more liquidity and enhances your savings in the long run. Bajaj Finserv is often also known as a loan company with a reasonable commercial loan rate.
These accounts give you a fixed sum of credit in your name and you pay interest only on the money you actually end up using. The profit is not there for you which helps you to expand your business more. With your credit history settled with the banks, getting small business funding will be much easier and quicker.
Additionally, this flexible option also gives you the opportunity to pre-pay the loan with idle funds, eliminate part-payment charges and get access to seamless online transactions for your small business loan.
If you’re comparing business loan providers, one excellent option is partnering with Bajaj Finserv. They offer all the benefits of a flexible loan, and give you access to funds from Rs 5 lakhs up to Rs 30 lakhs, with a tenure that ranges from 12–48 months.
Moreover, considering that they don’t require any collateral or guarantor, your access to funds becomes that much easier. However, if your business is growing, that means that you may also have to take further loans.
In this case, if you pay your previous loan in time and maintain a good credit history. Doing this will provide you with loans with low or reasonable commercial loan rates. Business funding often generates company revamps on some of their poor marketing tricks.
This is the reason why many small business owners can easily pay back the loan with interest. Please leave a comment in the comment section below to let us know about your feedback on this article.
Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences in this blog. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you. Follow him on Instagram, Twitter & LinkedIn