Business Loan

Are you planning to apply for a Business Loan? Here are the 5 must ask questions before applying for a business loan. 

In the current market, business loan interest rates range from 6-48% per annum.

It is important to check your business loan eligibility criteria before making a business loan application. Banks and lenders have certain business loan eligibility criteria and all applicants have to meet these before a business loan is sanctioned. The eligibility criteria differ across lenders and usually depend on the applicant’s profile. 

Here are the top ways in which a business loan can improve your manufacturing business

A commercial loan is offered to business units by banks and NBFCs. These loans can be used for any purpose of the business like buying an asset or machinery or for meeting working capital requirements.

Vendor financing is a type of finance facility provided by a lender to eligible borrowers so that they can buy products or services of a specific vendor. It is also known as deferred loans or supplier finance or trade credit. Under this type of financing the loan is provided directly or indirectly by the vendor. These loans usually have a higher rate of interest and the borrower also has to provide collateral. 

Indian has become a booming valley of start-ups in the recent past and to promote the start-ups there are many schemes and incentives to the entrepreneurs that make financing the start-ups an easier path today. Most banks provide business loans to entrepreneurs to start a new business but require collateral to take such risk.

Equipment financing is the loan option available to businesses for the purchase of any machinery or equipment that is essential for the upgrade or extension and expansion of the business. These loans are provided to small businesses as well as large companies and giving them tax benefits too. 

POS is a Point Of Sale where the customers can buy any goods and services at agreed prices. The customers can make payments for their purchases through the available payment modes. The customers will get a digital receipt for the payment made. 

Microloans are in the nature of short-term finances that are available to self-employed persons, small businesses, start-ups, etc. These loans have a low credit requirement. This type of finance is especially helpful to those eligible applicants that have little to virtually no access to financial assistance. Given below are a few basic details of the microloans.

A merchant cash advance is a form of business finance available to eligible business houses to provide them with the necessary funding whenever needed. This loan is then repaid in the form of a percentage of future credit card or debit card sales.

Fullerton India is a Non-Banking Financial Company registered with the RBI. The business loans of the NBFC are one of the many loan segments provided by the bank. Few basic details of these business loans are provided hereunder. 

IDFC FIRST Bank Business Loan is an unsecured business loan offered to businesses (MSMEs and non-individuals), to meet their varying business needs like expanding to new markets, buying new equipment, meeting working capital, and so on.

GST Business is a collateral-free loan that is available to businesses (MSMEs), on the basis of their GST Returns with no requirements of other financial documents. Such loans help in quicker loan financing resulting in better cash flow and enhanced business operations.

A business loan can be used for working capital management, especially one that is immediately disbursed and provides sufficient cash for business operations. Working capital management is essential for day-to-day business functioning and can define business profitability in the long run. 

Lendingkart Finance is a Non-banking Financial Company (NBFC) that offers various business and working capital loans to Small and Medium-Sized Enterprises (SMEs) across India. Lendingkart provides online access to loan applicants for a hassle-free documentation process.

A payment gateway is an online payments service that can be integrated into an e-commerce platform. It acts as a channel for making and receiving payments. Payment gateways are used to receive an endless number of payments securely. This allows a quick and convenient payment process and aids in multiple payment-related tasks.

Some of the top banks that give business loans easily are mentioned below along with the business loan type offered

650 is not a ‘Great' credit score, but it is a ‘Fair' score. It can get you a business loan if you are able to submit substantial documentary proof to support your repayment capacity. 

Mudra Shishu scheme offers loans up to Rs.50,000 as collateral-free loans to eligible businesses.