When you make that transition from being an employed person to becoming a small business owner, it is undoubtedly the most exciting phase of your professional life. On one side, there is a fear of uncertainty. You might want to reconsider your decision about starting a business. On the other side, you feel the excitement of being your own master and that you will get a chance to do things your way.
In most cases, the excitement of being a successful entrepreneur is more powerful than any other aspiration that you might have. It is the ultimate dream for the business owner to become a successful businessman. This dream will lead you to leave the security of a job, invest all the savings, and start working wholeheartedly to achieve the ultimate goal of running a successful business venture.
After a while, when the initial investment is consumed in the business, you will need to look for alternative sources of funding to support the growth and financial requirements of your business. There are numerous options at your disposal when you are selecting the best borrowing option. But none serve the needs better than online business loan companies.
The online lending companies are necessarily NBFCs that have the entire process of application and MSME loan disbursement online. That is, you can complete the whole loan process online from the comfort of your office or home.
About Online Business Loan Companies
Online business loan companies have become extremely popular among business owners in recent times. One of the primary reasons for this is strict eligibility criteria and collateral requirement of the banks. Banks follow a tiresome and document-oriented approach. It ultimately results in the business loan application to get approved in months. This is where online business loan companies are ahead of the banks.
Here are some of the most amazing features of online lending companies that you must be aware of:
Flexibility: the loan amount borrowed under unsecured business loan can be used for any activity related to business. You don’t have to inform the lender about how the money will be spent. Moreover, the online lenders offer different types of business loans, such as capital loans, working capital loans, machinery loans, and term loans.
Relaxed Eligibility Criteria: online lending companies follow relaxed and straightforward eligibility criteria. They assess the application for a business loan holistically. They have their eligibility assessment process in which they do not merely depend on the CIBIL score and report but calculate the borrower’s creditworthiness completely by considering other factors as well.
High-Value Loans: a business owner can avail an unsecured business loan on an instant basis if the annual turnover of the business is more than Rs. 10 lakhs. As said above, the amount can be used for any business-related requirement. So, it is an excellent option to supplement the business finances through a business loan.
Extended Repayment Tenor: what makes availing the unsecured business loans from online lenders the best and ideal option is that you can repay the amount in easy monthly instalments (EMIs) of in up to 24 months. This option ensures that the amount of your EMI is affordable and budget-friendly, and it does not affect the business cash rotation in any way.
Hassle-free Application Process: there is no need to fill-up lengthy application forms; you just need to fill up a basic loan application form. All the necessary information must be correct and duly filled. Then, upload the soft copies (PDFs) of the business and personal documents to process the application. Online companies follow a paperless application process. It allows the applicant to fill the loan application conveniently from a computer or a smartphone.
Quick Processing: The paper-less procedure followed by online business loan companies for MSME loan disbursement ensures that the business loan applications are processed quickly. In most cases, the loan application will be approved the same day. Besides, the approved loan amount would be credited in the applicant’s account within a couple of working days.
Flexible Repayment Options: you can opt to foreclose your loan account or prepay the loan amount as per your financial strength. That is, if you have spare funds, you can foreclose the business loan account after the payment of 6 EMIs, without incurring any additional charges. This option helps to save a considerable amount of money, which otherwise was to be spent as interest costs.
Competitive Interest Rates: business loans from online lending companies come with cost-effective interest rates. The NBFC business loans are offered at lower interest rates as compared to other options, like banks, private money lenders, and credit cards.
Transparency: online lenders follow a transparent process to process the business loan application. Here, you receive regular updates over SMS or Email regarding the status of the loan application. Therefore, it completely eliminates the need to visit the bank or NBFC office to know the status of the application for a business loan.
With numerous benefits on offer, availing an unsecured business loan from online business loan companies is undoubtedly the best option. It effectively helps in taking care of the urgent expenses without affecting the routine business operations.