Advantages of Getting A Business Loan
Your innovative business idea requires appropriate financial backing to help you build it to its fullest potential. But if you don’t have the capital to start with, a business loan is your best option. We tell you why.
Whether you’re laying the foundation for a new business or need capital to maintain inventories, facilitate an expansion or purchase equipment, a business loan can help your business venture transition into a bigger enterprise fluidly. While you can’t have full control over a lot of factors that affect your business, you can secure it financially with a business loan.
Also Read: What is Business Loan: A Beginner’s Guide
Take a look at 5 reasons why opting for one is a wise move:
Low Interest Rates
First and foremost, when evaluating any source of credit, do take a good look at the interest rates. As compared to credit cards or any other sources of credit for that matter, business loans are offered to you at extremely low interest rates, making them an excellent choice for your business venture. Also, compared to other sources of credit, a business loan offers access to a higher sum of money. If business loan interest rate is a major cause for concern, fret not, because this source of funding amounts to minimal financial burden.
No Need to Put Up Collateral or a Guarantor
If you thought getting a loan involved putting up collateral against the amount of your loan or nominating a guarantor to share the financial risk, we urge you to explore business loans that don’t require you to do either. While putting up collateral or providing a guarantor may have been a norm in the past, there exist business loans today that put your needs ahead and give you easy access to credit without the additional worry of procuring collateral.
They Offer Great Versatility
Right from the amount you want to borrow and the tenure of the loan to business loan repayments, they can be fine-tuned to suit your needs perfectly. Additionally, market fluctuations and the stability of your business are key factors used by institutions to determine charges and fees to make them a viable and fair credit option for every entrepreneur.
Access to Pre-approved Offers
On the basis of your credit history, promptness with regards to payment and your income and cash flow, several business loan providers will present you with pre-approved offers. If your financial practices are stable, these offers give you access to top-up loans and a reduction in the rate of interest from time to time. For an entrepreneur who has financial discipline, this comes as an added advantage.
Benefit from Flexi Loans
Depending on the credit provider you choose, your business may even stand to benefit from a Flexi Loan. For example, at Bajaj Finserv, you can sign up for a Flexi Loan Account that gives you more liquidity and enhances your savings in the long run. These accounts give you a fixed sum of credit in your name and you pay interest only on the money you actually end up using. Additionally, this flexible option also gives you the opportunity to pre-pay the loan with idle funds, eliminate part-payment charges and get access to seamless online transactions.
If you’re comparing business loan providers, one excellent option is partnering with Bajaj Finserv. They offer all the benefits of a flexible loan, and give you access to funds from Rs 5 lakhs up to Rs 30 lakhs, with a tenure that ranges from 12–48 months. Moreover, considering that they don’t require any collateral or guarantor, your access to funds becomes that much easier.