While it’s true that not every reason is a good reason to go into debt for your business, that doesn’t mean that good reasons don’t exist. If your business is ready to take a leap, but you don’t have the working capital to do so, here are six reasons you might re-consider applying for a small business loan online in India.
- Speedier: Arguably, the online option is THE fastest way to get business finance. Eligibility evaluations are algorithm based and take a matter of minutes, sometimes seconds. What’s more, you do not submit bulky documentation up-front but only once your application has been submitted and approved. This also provides you the comfort that copies of your valuable documentation aren’t floating around needlessly. Verification of documentation is also done digitally as far as possible, which also saves considerable time. The speed of processing is especially useful if you need an emergency loan – offline sources would not only be slower but would also prove more expensive given your desperate need.
- Wider Choice: When you approach one type of lender, you get off the shelf products. When you apply on an online marketplace, you get a wide pool of lenders with multiple products. The one that is most suitable to your need is mapped and if all goes well, you proceed to the next stage. So, at the onset itself, you have picked the most appropriate loan rather than being forced to take what’s on offer. Essentially, the online lending marketplaces put you, the borrower, in the driver’s seat and match your business with the right lender and provide you with loan options to select from.
- Flexibility for Usage: Unlike equity investors, lenders like banks and NBFCs don’t interfere with how you run your business. They don’t dictate how you should use the business loan money; they’re just concerned with timely repayments. Therefore, a business loan is the best option to retain full control over how you spend funds.
- Easy Availability: There are schemes from the lenders, where a business can avail collateral-free loan up to INR 2 crores. with the emergence of fintech companies, the process of availing business loans has become much easier and efficient.
- Cash Flow: A business loan may be needed to get over a temporary shortfall in money. Normally there is a time-lag between when a business raises an invoice and when it gets paid. At the same time every business will have to make some payments at any given point in time. This needs to be managed carefully, but any delay in receiving money or the payment date has been rescheduled to a time earlier than the current scheduled time, this can lead to a stress on the cash flow.
The pre approved loan online is generally used by businesses to meet their working capital requirements. It can be used to finance equipment purchasing, operation expansion. inventory, renovating office space, attend to cash flow issues, and so on. Almost all banks and financial institutions have one or more business Loan products to cater to customer’s needs.