What makes corporate loans safe for your small business? - How Webs

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Thursday, April 11, 2019

What makes corporate loans safe for your small business?

What makes corporate loans safe for your small business?

Loans - As a small business owner, you may not have any assets that you can pledge as collateral for taking out a secured loan. That is why financial institutions offer their unsecured loans as an alternative. You do not risk losing your assets in the event that you do not meet the loan.



A business loan is such an unsecured loan that provides you with the necessary funds necessary for the continuation of your business. Whether you start up or expand, these loans can help you in various ways.

In addition, business loans are now more accessible to the public due to the growing number of fintech companies in India. Competition between these lenders has also introduced various tailor-made business loans; you can get one based on your company's requirements.

That is why business loans are one of the safest gambling games when it comes to financing your small business. Below are some of their functions that justify the same:

They can generate enough money for your company
Small businesses can get these loans up to Rs. 30 Lakh that can be used as starting capital or working capital.
Entrepreneurs need capital to set up their business. On the other hand, existing companies need investments both for expansion and for financial crises. Whatever the reason, a business loan is your go-to solution for getting sufficient funds.
These loans have no usage restrictions
Lenders do not impose restrictions on the use of these loans. You can therefore use the amount for any business requirement without any problems.

5 of the many uses of business loans include:

Buy / upgrade installations / machines
Machines and installations are a must when setting up a production company. You may also need to upgrade them in case they have undergone significant depreciation.
That is why these loans can help you with both purchasing and upgrading machines and installations.
Buying resources
To produce products, you need resources and business loans are perfect to provide that financial assistance.
Re-inventory inventory
Since the interest rate for business loans is low, you can easily use it to rebuild your inventory before you reach the order level.

Debt consolidation

Sometimes you get into debt due to slow business operations and limited cash inflows. You must pay your suppliers in time to ensure that you maintain healthy contact with them.
In such situations, business loans help you to consolidate your debts.
Working capital
Companies need a constant cash flow for daily expenses such as utility bills, rent, wages, etc. A working capital shortage can therefore be an obstacle to business operations for which you can opt for a loan.
You will have sufficient time to repay the loan
NBFCs such as Bajaj Finserv have a duration of 12 to 48 months, and also a competitive interest rate for business loans. You will therefore have ample time to repay the loan without having to worry about it.

Moreover, Bajaj Finserv offers pre-approved offers for these loans that make the financing process run smoothly. These offers also come with mortgages, personal loans and various other financial products and services.
You can view your pre-approved offer by just providing some necessary documents.
You only have to hand in a few documents

Business loans can be used by providing only the following documents:

KYC - Aadhaar, PAN, passport, voter ID, etc.
Proof of address - Latest energy bill or a KYC document containing the permanent address.
All documents or certificates that verify the proof and existence of the company.
Account statements.

You must meet minimum selection criteria for these loans
The eligibility criteria for business loans are the following:
You must be between 25 and 55 years old.
Your company must have a vintage of at least 3 years.
You must file income tax returns for at least the previous year.
You must check your business revenue by a CA at least the previous year.

In addition, you may need a credit score of 750 or higher to apply for these payday loans.
These are the reasons why business loans are one of the safest and easiest forms of financing and organization of your small business. Choose these loans today and provide the necessary financial support for your business expansion.

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