It is the cash flow that determines the health of a manufacturing unit. And in situations when there are insufficient funds, a business loan for manufacturers can be availed. It is common for business owners not to have enough funds for sometimes the expenses exceed income. It can create hindrances in business operations. However, temporary holding the operations is not a solution. This way, the enterprise would suffer as there can be revenue lost as well.
An unsecured business loan for manufacturers can be availed. It is an unsecured loan for business where there is no need to pledge any security. Thus, small business owners can also have access to loans for business. Also, with the advent of online lenders, it has become easy to secure business funding.
Here’s Everything That You Need To Know About Business Loan Eligibility
How to Apply for a Business Loan for Manufacturers?
FinTech companies have become most-sought after source for unsecured business loans. FinTech lenders are essentially the Non-Banking Finance Companies that are a tech-enabled platform. They use digital techniques to receive and process loan applications. Also, they disburse the loan amount within three days. These companies or NBFCs have made the Indian credit industry more competitive.
The small business owners can now afford to avail credit facilities without hypothecating collateral. The eligibility requirements are also very flexible that the SMEs can easily meet. Typically, a digital lender offers an online loan application. The applicant can fill the application on the official website of the lender in less than 10 minutes.
The applicant can also upload the soft copies of PAN card, ID proof, ITR, and bank statement. Within minutes of the loan application submission, the FinTech companies process the application. If the application is approved, the loan amount is disbursed into the applicant’s bank account within three days.
Types of Business Loans
An unsecured business loan for manufacturers can be availed to buy machinery or increase working capital. The latter is the funds that are used to finance day-to-day business operations. An SME can avail a business loan up to Rs. 5 lakh to start operations at a new location or to add a new product line.
Understanding the Loan Fee
The loan fee is a crucial aspect to consider while comparing loans. Lured by low loan interest rates, applicants end up signing for expensive loans. Some loan lenders do not mention the total fee of the loans on their website or brochure. They also talk about Terms & Conditions in tiny letters.
It is vital for the applicant to know about all the fees associated with the loan to be able to make a sound choice. He should know about processing fee, file charges, documentation fee, etc. Also, see the repayment tenure of the loan to determine the EMI cost.
In the business of manufacturing, especially the one that produces perishable items, time is money. Buying equipment or raw material cannot be delayed. An unsecured business loan fills the gap in cash reserves almost instantly. If you run a manufacturing unit and are looking for a business loan for manufacturers, you can avail the services from ZipLoan. We are an RBI registered NBFC that offer loans for business at minimal documentation and basic eligibility criteria.