A business loan for traders is offered by many loan lenders in India. There is an adage in the world of business, “it takes money to make money.” And to help small traders to grow their business, a trader’s loan scheme is very much needed. Even after maintaining adequate cash reserves, there are times when arranging for cash can become challenging, especially for small traders in India.
Most SMEs and MSMEs initiate their business with a low level of the fund. They face competition with already established players in the market and also deal with seasonal sales cycles. As a result, small traders may not be able to generate enough funds from sales even if the trading unit is performing par from expectations. Additionally, additional funds are also required to hire experienced staff, purchase updated technology, and maintain good inventory levels.
Cash cushion is necessary for both survival and growth of the trading unit. For this, an unsecured business loan for traders can be extremely helpful as it offers a number of advantages. However, there are certain challenges as well of availing trader’s loan.
Challenges in Obtaining Loan
There multiple loan lenders operating in the financial market. However, there are few who are focused on helping small and medium enterprises in the marker. However, these lenders ask for security to back the business loan. And this is the biggest challenge faced by small traders in India while availing a trader’s loan.
Having said that, the advent of NBFCs have offered much relief to the small business owners. The biggest relief is that they offer business loans without security. So, there is no need to offer collateral to avail a loan. Thus, small traders can also have access to additional funds in a convenient way.
Solutions to Overcome Challenges
As talked earlier, NBFCs and unsecured business loans are a relief to business owners. This type of loan comes with customized terms. Additionally, NFBCs are not very strict with their terms and conditions. They have completely transformed the Indian lending industry and have quick and fast funding a reality.
They have an array of SME loan, MSME loan, machinery loan, term loan, and working capital loan that helps the business owner to meet his different needs. Apply for a loan is very hassle-free because of its online loan application. It is completely customer-centric and they are continuously working towards making it more convenient for an enterprise to apply for a loan for a business.
How to get a Business Loan?
also read: how to get an instant loan for business?
Availing a loan from FinTech companies (NBFCs) is absolutely a hassle-free task. Those businessmen who are still unaware of the FinTech word, a combination of Finance and Technology, can perform a quick search online. As the name suggests, FinTech companies use digital technology to make access to a business loan for traders really convenient and easy.
Any SME and MSME can avail the facility of NBFC unsecured business loans online. They have lenient eligibility criteria that make more and more small traders become eligible for loans. Additionally, they also do not have the requirement of piles of documents- they require minimal documents to grant loans for small business.
The trader can apply for a loan online through the lender’s website or mobile App. He can easily fill the loan application with all the required information and submit online. The next step is to upload the required business loan documents online. Once these two steps are done, the lender’s representative will do next. They will process your application further and also keep the borrower updated through SMS and e-mails.
How to pay back the Loan Amount?
Most loans are repaid in EMIs- Equated Monthly Instalments. And the trading business operator can also repay the loan amount in EMIs. However, most lenders have a pre-defined repayment tenure that does not necessarily suits every borrower. The NBFCs in India offer flexible repayment tenure that enables the traders in India to repay the loan as per their revenues.
Now that you know how to get a business loan and repay it is a hassle-free manner, you can also take the best advantage of an unsecured business loan for traders and grow your small business.