Every business owner wants his business to grow and run successfully. For this, he sometimes avails a business loan as well. A loan for business is easily available due to the number of financial lenders operating in the market. However, the problem arises when a business owner is not able to repay his loan on time. It only makes more sense to avoid the late payment of loans as it can negatively affect the credit score. And a low credit or CIBIL score can adversely affect the loan availing ability of the business owner.
Some loan lenders have strict rules, while some have lenient eligibility criteria for a business loan. It is worth mentioning that if the borrower delays in repaying the loan amount, a penalty or fee is added to the amount. Read on to know the crucial ways of repaying the business loan amount on time.
Avail one Loan at one time
The best way to repay the loan for business on time is to avail a loan at one time. This method is always useful as it does not overburden the borrower with EMIs of multiple loans; paying multiple EMIs at one time can be difficult. Thus, the business owner can easily manage his loan account.
Minimizing Daily Expenses
Loan EMI can be repaid easily by diminishing daily expenses. It will enable the business owner to manage the EMI payment conveniently. By minimizing daily costs, we mean to reduce unnecessary expenses. The business owner needs to identify the expenses which won’t hinder the normal functioning of the business. Nevertheless, the expenses which will impact the daily operations of the business should not be minimized as they might impact negatively on the business functions.
Plan EMI Carefully
A business owner can avail a business loan from any bank or NBFC. However, he needs to be careful when planning the EMIs. He needs to ensure that he can afford the EMI amount he agrees for. A business owner can also take the help of EMI calculator to determine the monthly installment amount. Nevertheless, a few business owners offer the facility of rescheduling the EMI amount; it will help in planning the EMIs according to the pocket.
If your business is more than two years old and you want to expand it, you can avail an unsecured business loan of up to Rs. 5 lakhs from ZipLoan. It is an RBI registered NBFC that offers business loan without collateral at easy to meet eligibility criteria and minimal documentation.