The concept of evolution is not only to survive different conditions but to thrive in them. To evolve means constantly striving to become a better version of ourselves. It has been ingrained in all aspects of life – be it for a person or a business.
For a small business, to evolve means to grow, diversify, and maximize its reach to become successful. Thankfully, they can always rely on Small Business Loans to strengthen their efforts and accomplish various goals. These loans are collateral-free, which means a business can get additional finances without having to put up any asset(s) as security.
Here are the top features of a Small Business Loan:
- No Collateral – Firstly, most Small Business Loans in India are collateral-free, which means no security is involved in availing of the loan.
- Quick Loan Processing – The entire loan processing journey from application to disbursal is quick and hassle-free.
- Flexible Tenure – The repayment tenure of a Small Business Loan ranges from 12 to 36 months. This offers greater flexibility to SMEs and MSMEs for paying off the loan via convenient EMIs.
- Affordable Interest Rates – Nowadays, most Small Business Loans can be availed of at competitive interest rates.
- Better Loan Management – You can easily manage your loan thanks to better accessibility and enhanced digital servicing channels to track repayment.
- Pre-approved offers – Pre-approved offers are available for quicker disbursal.
Now, let’s find out how you can use a collateral-free Business Loan to seize growth opportunities!
- Boost Working Capital – Maintaining steady cash flow is important to keep a business running smoothly. For that, you need to maintain adequate working capital. With a Business Loan, you can add to your working capital reserves, and use the extra savings during emergencies.
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- Invest in New Technology – With Small Business Loans, you can keep up with competitors by investing in the latest technological advancements. It will allow you to pick up the pace and improve your production capabilities.
- Purchase New Inventory – You can purchase and stock your inventory with a Small Business Loan. This will also allow you to meet an increase in demands during busy months and avoid any last-minute hassles.
- Improve Business Marketing Efforts – You can easily improve and enhance your business marketing strategies to reach a wider set of audiences with a Small Business Loan. The more people you reach, the greater will be your brand awareness. This will also lead to the creation of a positive brand image in the eyes of your customers.
- Upgrade Business Infrastructure – Install new plants & machinery, equipment, and software with a help of a Small Business Loan. The extra cash flow will not only upgrade your business infrastructure but improve its overall operational capabilities as well.
- Expand & Diversify – You can use Small Business Loans to fund the expansion and diversification of your business and explore potential growth opportunities. Find new markets or places where you know your business can thrive and watch it reach new heights of success with a Small Business Loan.
Small Business Loans – How to Apply?
There are a few things you need to make sure of before availing of a Small Business Loan. Here are the details for applying:
- Minimal Documentation – Small Business Owners can furnish basic KYC documents to apply for a Small Business Loan. The list of documents can include:
- Company PAN Card or Director/Proprietor PAN Card
- Address Proof
- Business Address Proof
- Financial documents
Note: This list of documents is indicative and may vary between lenders.
- Simple Business Loan Eligibility – The business loan eligibility criteria for Small Business Loans are easy to understand. The eligibility criteria could include the following:
- Age of business owner: between 22 and 65 years
- Citizenship: Indian
- Business Vintage (Years of operation): Minimum two years
- Annual turnover: Over ₹9 Lakh
Note: This list of documents is indicative and may vary between lenders.
Conclusion
Small Business Loans are an excellent form of financial assistance for SMEs and MSMEs to seize growth opportunities and improve operations. With these financial products coupled with other factors, businesses can scale up and increase their profits in virtually no time. Also, the simple Business Loan eligibility makes it easily accessible. To know more, visit www.poonawallafincorp.com
