As a small business owner, you need funds for professional purposes at regular intervals. While you may be tempted to finance these using existing cash reserves or savings, it is important to note that using other sources, such as a business loan from a worthy lender, can help you save your reserves for a rainy day.
In recent times, Non-Banking Financial Companies (NBFCs) have entered the mix, which helps small business owners like yourself enjoy benefits like flexibility and affordability when it comes to borrowing finance. First and foremost, focus on selecting the right lender. Knowing where to look for a loan is an important process in itself and can ensure that your borrowing experience is rewarding.
Here is how you can seek out the right business loan lender for your company's needs.
Research the market: Before you borrow a loan, ensure you research and review various lenders and the benefits that they offer. This will help you select a lender that offers you a loan that meets your needs perfectly, with maximum benefits.
Compare the various rates of interest: Ensure that the lender you choose offers a nominal rate of interest. This can make a world of difference as far as making repayment affordable goes.
Review the additional features: Apart from the low interest rate and a choice of tenor, ensure that your lender offers you benefits that enhance your borrowing experience. This could include features like online loan management or online loan application.
While the aforementioned pointers will help you choose the right lender, take a look at the features that this loan offers, that make it a better option as compared to other loan variants.
Offers quick access to funds:
Business needs often require finance urgently. You could need funds within a span of a day or two to put down a deposit on a larger office space. In such a scenario, a business loan is handy as it allows you to apply online. It only takes up to five minutes of your time and eliminates the hassle of visiting the branch and waiting in long queues. Further, the loan is approved immediately, and you can get access to funds in as soon as 24 hours. In fact, the funds are disbursed straight to your account, so you don't have to worry about cashing a cheque.
Most importantly, business loan eligibility criteria are simple, which means you don't have to meet a host of requirements before applying. You must be between 25 and 55 years of age with a business vintage of at least 3 years. Besides this, ensure that your business' Income Tax has been filed for at least the past 1 year, and a chartered accountant has audited the previous year's turnover.
Has a low cost of borrowing:
As a self-employed individual, if your business is still young, you might want to refrain from acquiring costly debt. However, when you opt for this loan, especially from an NBFC, you can ensure that you get the loan at a low rate of interest that doesn't weigh down your business. Besides, you can expect complete transparency about the fees and charges. Apart from paying basic charges, you can enjoy perks such as not having to pay to access loan statements, which further reduces your costs.
Also, most lenders offer this loan to you without any collateral. As a result, you can keep your personal and business assets protected from risk. Moreover, if you own a relatively new company without any assets to your name, you can still opt for this form of financing.
Comes with convenient repayment terms:
Not only is it affordable to borrow, this loan's repayment terms offer convenience too. You can choose a tenor between 12 and 96 months to repay the loan, based on your company's financial capabilities. Choose a short tenor to clear the loan quickly, or opt for a long tenor to make the most of low EMIs. Besides this, when you choose a business loan, you can also make the most of prepayment and foreclosure. This is because you don't have to pay an extra fee when you exercise these options.
Take a Collateral free Business Loan of up to Rs.30 lakh from Bajaj Finserv and enjoy all these benefits. When you choose Bajaj Finserv, you can also avail the loan as a Flexi Loan. Here, you can use funds from the total loan amount as per your needs and pay interest only on what you use, as opposed to the total sanction. You also have the choice to pay interest-only EMIs and repay the principal at the end of the tenor. This also makes repayment easy for your business, especially if you're awaiting payments from clients or are dealing with working capital shortfalls.
Offers easy loan management:
You might seek information regarding the progress of your loan from time to time for business records and tax purposes. This could include wanting to view interest statements, principal statements and balance details. Most modern loan providers allow you to access this information via an online portal. All you have to do is log in with your allotted user ID and password and you will have all the information at your fingertips.
This information will help you choose the right lender and evaluate various business loans based on their features to arrive at one that closely matches your needs and repayment ability.