Running your own business is a really rewarding experience. But it brings along with it stress as well. As a small business owner, you are always busy managing various things just to make sure that your business operations keep running smoothly. It takes a huge chunk of your time to manage various important functions, such as marketing, finance, sales, operations, HR, etc. You need to discuss all the important issues with the relevant personnel and find out the aptest solution.
While you are busy managing the various functions of your business venture, you tend to ignore the most important aspect, i.e. accounts and finance.
Keeping a close tab on the state of your business finances is very important. Otherwise, you might realise that you are facing a shortage of funds. This is important, especially when you are on an expansion spree.
In such a situation, the best option at your disposal is to approach a financial institution to get access to unsecured business loans. There are various financial institutions operating in India that provides the best business loan offers. These offers are tailor-made as per the requirements of the different business ventures.
Private Banks, Public Banks, Private Money Lenders, Gold Loan Companies, NBFCs, and Online Lending Companies are some of the most popular types of financing companies operating in India. With the ease of application and transparency in operations, NBFCs and online lending companies have clearly emerged as the market leaders and a customer favourite for their business loan requirements.
About Online Lending Companies
Online lending companies are those non-banking financial corporations that operate through their online platform only. When applying to them for a business loan, you need to log-on to their website or mobile application. They follow a paper-less procedure where you only need to provide PDFs of your KYC and financial documents to process your business loan application. If your profile meets their requirements, your application would be approved, and disbursals would be done within a few working days.
They follow a flexible business loan eligibility criterion, wherein they have developed their unique methodology to ascertain your eligibility for a business loan. They holistically check your eligibility. Therefore, your chances of getting an unsecured loan increase. Besides, they also offer an online eligibility calculator to help you check your eligibility online easily.
If your business has an annual turnover of over Rs. 10 Lakhs, you can avail an unsecured business loan of up to Rs. 7.5 Lakhs instantly. The maximum repayment tenor that you can opt for is 36 months. Moreover, you also have the option to foreclose the loan account after six months, without incurring any additional pre-payment/foreclosure charges.
What Factors Affect your Business Loan Offers?
Finding the best business loan offer that meets your requirements is not an easy task. There might be some loan lender that gives you a higher amount but with a reduced repayment tenor. However, there might be other loan lenders who would be offering you a lower interest rate but higher APR (Annual Percentage Rate).
In the wake of such instances, it becomes important for you to identify the best business loan offers to maximise the advantages for your business. The following are the factors that you should be considered as they might affect your business loan:
- Estimate your Requirements: You must estimate your requirements accurately. There is no point in applying for an amount which is lesser than what you require, and there is no point in applying for an amount which is more than what you require. Take professional help, if necessary, but make sure you apply for only that much amount which you require.
- Conduct Market Research: There are various lenders operating in the market who offer different types of business loans. Use the internet to find out about the various business loan providers and then check whose eligibility criteria meets your credit profile. This will significantly enhance the chances of your application being approved.
- Identify All Loan Products Available: There are various loan products available in the market from which you can choose. Business loans such as Machinery Loans, Term Loans, Working Capital Loans, and Unsecured Loans are some of the most popular business loan types. You must select the one which is in sync with your requirements.
- Identify the Loan Products that meet your Requirements: Now that you have shortlisted various loan providers, study their offerings in detail, ask any question you may have from them, and only after due-diligence should you select the best business loan option for your requirements.
- Negotiate Hard: There is always scope for negotiations! Remember that even a slight reduction in the interest rates can translate into significant savings for you. So, make it a point to negotiate with your lender for a lower interest rate. After all, there is no harm in trying.
It is important for you to conduct thorough research before finalising any business loan offer; it is a significant financial commitment that you must not take lightly.