Thanks to the numerous banks and other financial institutions in India such as Ziploan that offer easy and convenience business loans, there has been an exponential rise in the number of start-ups and small enterprises thriving in the market today. Taking a business loan is the easiest and most reliable way to not only manage your day-to- day operational expenses and cash-flow but also to grow and expand your business to greater heights. But before you go ahead and opt any loan for your business, have a look at the various types of business credit that are available for both young and established entrepreneurs in our country.
Term loan
As the name suggests, a term business loan is typically availed for a specified tenure, within which the applicant is obligated to repay the entire principal and interest amount to the lender. Such loans usually have a fixed repayment schedule that can be either monthly or quarterly depending upon the plan availed. A term loan can be procured for the purpose of enhancing long-term fixed assets such as real estate, building or production machinery.
Line of credit
A line of credit is one of the most popular working capital loans typically procured for the purpose of small business loan requirements such as protection against stalled cash-flow, purchase of inventory and managing everyday operational costs. It is like a permanent loan arrangement that a business owner has with his/her bank or the lending company.
Collateral-free loan
Collateral-free or unsecured business loans are particularly useful for small businesses as they do not require the owner to surrender a business or personal asset as collateral against the procurement of the credit. Small businesses can typically apply for these loans for financial assistance in both their start-up phases as well as when they have been adequately established. Unsecured business loans can be availed for a variety of purposes including covering everyday operational costs and cash flows, purchase of machinery and inventory, and assistance in business expansion.
Equipment loans
Specifically designed for the purpose of purchasing equipment such as generators and other MSME machineries. Technically, equipment loan is a secured loan wherein the equipment is hypothecated as collateral and the tenure of which is decided upon the nature of the plan and the repayment capacity of the applicant. In case you are looking for a reliable and customer centric business loan provider in Delhi, NCR area, please enquire for a call back or directly apply for a loan on our official ziploan website.
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