How SMEs Benefit from Online Business Loans

 Did you know that SMEs contribute to nearly half of India's exports? An SME, also called Small and Medium Enterprise, are categorized broadly into two categories - manufacturing and services. A company is classified either as a 'Small' or 'Medium' enterprise based on the investment amount. If you're the SME owner, you will require funds at regular intervals to keep your business running. In today's day and age, an online business loan is an excellent way to arrange for the needed funds. As long as you meet the eligibility criteria and have the necessary documents, applying for an online business loan shouldn't be too difficult. This article lists four ways you can benefit by taking out an online business loan.

1.Flexibility in Usage

Once your lender approves your application for an online business loan and you receive the funds, you can use it to meet various business requirements. No matter who your lender is – a bank, NBFC or FinTech company – they won't dictate how you use the funds. All they care about is you repaying your loan EMIs on time. So, you have complete control over how you can utilize the funds. You can purchase necessary equipment, buy inventory, or even use the money to pay employee salaries and utility bills. Every SME is different and based on your business, you will have additional expenses to take care of. An online business loan doesn't restrict you from doing so.

2.Quick and Convenient

Availing of an online business loan is much more convenient and gives you the funds quicker than if you had to approach potential investors. After zeroing on a suitable lender, you need to create your profile, submit relevant information, and upload the required documents. Then, all that's left to do is apply for an online business loan on their platform. There may be various loan products you can choose from, with varying loan amounts and repayment terms. Choose the loan you're comfortable with and apply. Depending on your lender, the funds will be transferred directly into your bank account within a few hours. The entire process – from registration to disbursal – will hardly take two to three days.

3.No Need to Share Profits

To get financial support for your business, if you bring an investor on board, they will expect you to give them a share of the business profits in return. As an SME owner, you may not be too comfortable with that, which is why we recommend you opt for business loan companies. Regardless of how much profit your company makes (due to the financial support you received), there is no expectation to part with your profits. All you need to do is repay your online business loan EMIs on time.

4.No Collateral Required

Another advantage of opting for online business loans from business loan companies in India is the absence of collateral. Suppose you're a new owner of an up-and-coming SME. In that case, you'll find this especially helpful because your primary focus will be growing your business. You will not be in a position to arrange for collateral of any sort.

In Conclusion

The four points mentioned above tells you why an online business loan is much more helpful than an investment firm. However, before applying for a business loan, be sure of three things – the loan's purpose, your loan eligibility, and your repayment capacity.


Popular posts from this blog

All You Need to Know About Unsecured Business Loans

Business loans are sanctioned to existing business owners or budding entrepreneurs looking to start their own business. The business loan amount helps them get their idea off the ground. Existing business owners can use the funds to take care business expenses. The loan amount includes the principal amount which is paid with interest in monthly installments. How affordable/reliable is a business loan? Can you, as a business owner honour your installments on time? Other than loans from banks and NBFCs, you can get personal loans for business from FinTech lenders as well. In this article, we discuss business loans in detail. Business loans are broadly categorized into two types - secured business loans and unsecured business loans. What is an Unsecured Business Loan? The main difference between secured and unsecured business loans is that the latter requires the you to offer collateral while an unsecured loan does not require you to pledge any security. For a lender, secured business lo
Read more

3 Advantages of Consolidating Debt Using a Personal Loan

Whenever you’re faced with a financial emergency, taking out an instant personal loan is sure to be among the top choices that you would usually consider, in terms of coming up with the required funds. This is primarily due to the convenience they offer, from the reduced TAT and loan disbursal time, to the minimal documentation required. Today, it is very easy to get an instant personal loan, owing to the vast number of banks, NBFCs, and FinTech companies that provide them. Whether you need a personal loan in Bangalore, or a personal loan in Chennai, you can get one in a matter of minutes.  While it is always a good idea to borrow only how much you require, it may so happen that you end up taking a number of such personal loans in quick succession. In such cases, your financial goals are sure to take a hit, because a lot of debt accumulation has now taken place. While keeping track of numerous EMI payments can be tough, there is an option that can make your life easier – consoli
Read more

Tips to Get a Personal Loan with Low Credit

If you’ve ever borrowed a personal loan before, you’ll know exactly how important your credit score is for your personal loan’s approval. Your credit score is the gold standard against which all lenders across the country evaluate your loan approval. They use this to decide how risky it would be to sanction your loan. If you have a high credit score, you’d be a low-risk applicant for your lender. If your credit score is low, you’d most probably represent a high-risk proposition for your lender. Your credit score is a three-digit number that illustrates how financially responsible you are. It summarises how much credit you’ve availed of until now, your repayment behaviour, and your credit history. By now, you must be thinking that applicants with a low credit score cannot get a personal loan . But that’s not true. Here are four tips you can try to get a personal loan despite a low credit score: 1.Prove That You Have Good Repayment Capacity When it comes to getting a low credit personal
Read more