It is a universal truth that no small business owner ever has enough cash at his disposal. No matter how many years you have been in the business, you face a shortage of funds at one point of time or another. This does not mean that you never have enough cash, but it is very much true that due to cyclical fluctuations, you are sometimes left staring at the bottom of the barrel with bare minimum funds to sustain through the lean period.
In such a situation you tend to try and cut down on your expenses and scale down your operations, so that you can somehow sail through this period but at what cost? In the present-day competitive scenario, you risk losing out your customers to the competitors in no time.
Well, there is no need to let it come down to this, especially when you have an option of availing services of financial institutions who come to your rescue with varied loan offers for small business. The various financial institutions that you can contact are Banks, NBFCs, and online lending companies. Due to their unique product offering and transparent system of working, online lending companies are becoming the preferred borrowing option for small business owners facing a temporary liquidity crunch.
About Online Lending Companies
Online lending companies are basically specialised NBFCs that offer their services to small business owners seeking business loans through their website. These online lending companies offer a wide range of specialised business loans to meet the particular requirements of every business. You can log on to their website and access crucial information like MSME loan eligibility criteria, interest rates, repayment tenor, terms and conditions, and various other important aspects. With such knowledge at your disposal, you can easily take an informed decision.
Online lending companies follow a flexible MSME loan eligibility criteria wherein your business loan application will be approved even if your CIBIL score is low, depending on various other financial aspects of your business. With their paperless process and minimal documentation requirements, most business loan applications are approved and disbursed within a few working days. With high value loans of up to Rs. 5 Lakhs and an extended repayment tenor of up to 24 months, you can meet your liabilities in a timely manner and continue enjoying an excellent reputation in the market.
All you have to do is to log on to their website and apply using the online business loan application module with basic KYC and financial information to get the process started. For your convenience, they offer the facility of doorstep collection of documents as well.
Benefits of Availing Small Business Loans
Gone are the days when business loans were considered bad by most small business owners. In this era of high competition, you need to maintain your competitive advantage by whatever means possible. Financial institutions with loan offers for small business are offering you an excellent opportunity to supplement the finances of your business without stressing your cash rotation cycle.
Here are some of the major advantages of small business loans that you stand to benefit from:
- Supplementing Financial Strength: Small business loans help to strengthen the finances of your business by offering you the option of taking care of your financial urgencies in a timely manner and then repaying the amount through convenient EMIs. You can use the money for any business-related requirement without any need to inform the lender regarding the end use of the money so borrowed.
- Tax Benefits: Instead of borrowing from money lenders who not only charge you an exorbitant rate of interest and demand lump-sum payments, small business loans allow you the option of repaying the loan in easy EMIs. Moreover, the interest component of the business loan repayment made is eligible as a business expense and therefore, helps reduce your tax liability.
- Flexibility: Small business loan allows you the much-needed financial flexibility for your business. The money borrowed can be used as per your requirement for any business-related purpose that you want, such as payment of bills, payment of wages, payment to suppliers, etc.
- Easy Repayments: You need not make any lump-sum payment towards the loan amount. Pay through the EMIs as per the loan schedule. Moreover, if you have the funds with you at a later stage, you can foreclose the loan without incurring any additional charges.
- Build a Credit History: Small business loans are an excellent option to build a credit history. Paying your EMIs on time will help you improve your credit score and would in-turn build a credit history for your business, which would help you get higher loan amounts in the future.
With such amazing benefits to be availed of, small business loans are exactly what you need to take your business on the fast track to growth.