Many times expenses come that cannot wait, especially when your business is small. Whether you have to buy machinery or pay the staff, every step requires money. At such times, you need cash immediately to meet your emergency needs.
With the arrival of various lenders in the market, it has become easier to get a business loan in a few days. All you have to do is fill the application form and prove your eligibility. After all this, if your loan gets approved then you will immediately get the money in the bank account. Depending on your convenience, you can choose the repayment period between 12 and 24 months.
The best bet for small businesses is to approach alternative lenders for various types of business loans, ranging from machinery loans to capital business loans. However, due to the many types of loans available in the market, business owners can also be confused. Before choosing a particular loan, find out about your needs and then take a sensible decision.
Let us tell you how many types of business loans are there for small businesses.
Machinery loan is useful in many ways in business. When you run a business, you have to fulfill many requirements. To meet the demand of our products, it is necessary to fulfill our everyday manufacturing targets. For that reason, you have to keep all your machines and equipment updated. There is also a time when you can face financial crisis and you do not have money to upgrade new machinery, then machinery loan saves you.
Machinery loan comes in handy if you need to meet demand or upgrade equipment. Machinery loans can be taken from various banks, NBFCs and other lending institutions. It is so easy for a small manufacturer to take a machinery loan in such a situation.
Working capital loan
Working capital loans are the best way to raise money for a short period. The difference between an existing asset and a liability is called a working capital. Small business needs money to run every day. It cannot be used for property or long-term investment. It is used to meet the short term needs of the company. Such an instant loan is beneficial for those who have experience of fluctuating revenue.
If you have to buy equipment or renovate the office or make any similar investment then term loan is the best option. These loans are provided by banks, credit unions and online lenders. Going to an online lender is a good option for the long-term as they offer fast and easy loans. Also, they have flexible eligibility conditions. Apart from this, you can repay the loan in 12-24 months according to your convenience.
Unsecured business loans or collateral free (non-guaranteed) loans are used in small businesses because the customer does not have to pledge anything to get a loan. Small businesses can apply for this loan to meet financial support and needs. Unsecured business loans are taken for various purposes, including daily operating costs and cash flows, purchase of machines and inventory and assistance in business expansion.
After setting up your business, you can think about growing it. Fund will be needed for this and after putting your money on the company building, you will have very little money left. In such a situation, you can take a capital loan to meet financial needs and to increase business. Such loans are usually taken for a long period. But the repayment period varies from lender to lender.
To take an NBFC business loan, the lender will ask you to fill the loan application form and provide documents. In the document you will need to show:
– PAN and Aadhaar Card
– Personal and background financial statements
– PNL Statement
– Business Certificate & License
– Previous loan application history
– Income Tax Returns
– Bank statement
What is the eligibility for a business loan?
Every lender wants to make sure that the money he is giving to the customer will return it with interest on time. Therefore, there are many such scales of merit through which the lender knows the eligibility of the customer.
What is Eligibility Criteria:
– Last year’s ITR should be more than 1.5 lakh rupees.
– Either home or business premises should be in the name of the business owner.
– Last year’s turnover should be more than Rs 10 lakh.
– Home and business office should be different.
Is it easy to get an immediate loan from another borrower?
Other borrowers should be thanked because the process of getting loan is easy and hassle free. You just have to follow these things.
1. How much is needed: First identify your need and then decide the amount. This is very important because your loan amount will directly affect your finances, which means that if the amount is more than you need, then you will have to pay more interest.
2. Check your eligibility: You can check your eligibility by going to the lender’s website. Keep in mind that you should apply for the same amount, which is less according to your ability and this will increase the chances of loan approval.
3. Fill the application form: Apply for Business Loan
Apply online for For this, you will have to upload the documents demanded by the lender in PDF or soft copies.
4. Processing of the application: After sending the application form along with the documents, the lender will verify the information according to its terms and conditions. Meanwhile, they approve or reject your application.
5. Disbursement of loan: After your application is approved, the amount will come in the account within a few days.