What’s The Fastest Way To Get A Business Loan?
Every small business or startup require funds as it progresses. As the business grows, sales grow and more inventory is required. Further growth necessitates more expenditure on workspace, human resources, marketing, etc. On the other hand, unexpected expenses also commonly arise that require ready cash. For all these reasons, a business loan is the need of the hour. Getting a business loan is now easy with many banks, financial institutions and non-banking financial institutions providing small business loans in India. As a business owner, you can also think of raising a personal loan for business if the startup does not have the required history.
It is important to ensure that your business is well funded to enable it to take advantages of new business opportunities.
Here are various options for getting a business loan quickly and assess their viability too:
Use Your Pension Fund
A quick way to fund your business is by using money from your retirement fund. There is no need to approach a lender so the age of the business or the credit score of the business owner does not matter. This loan can be treated as an unsecured small business loan from the business owner and can be acquired easily. After all, it is the business owners’ money. For these loans there are no penalties or interest levied so the cost of using the money is the lowest. The major drawback to this unsecured small business loan is that the business owner is using money from his or her retirement fund. In case the business does not grow as planned or is unable to repay the personal loan to the business owner it can create havoc in the business owners’ retired life.
Use Credit Cards
A credit card is often the first place that most business owners look to for immediate purchases when they are strapped for cash. While the money is easily available, the credit card comes with high interest costs, which can cause a lot of stress to a startup. On the flip side, if the business needs to find a solution to its immediate cash crunch the credit card can be helpful. Responsible use of a credit card is also a great way to build a good credit score for the business.
Use Your Assets
If the business owner is a homeowner or if the business owns the premises that it operates out of, small business loan providers can use any of these assets to provide a low interest line of credit or loan depending on the business needs. Keep in mind that in case the business owners’ house is being used as collateral, and if business is unable to repay the loan the owner stands the risk of losing his house.
Also Read : What To Do, To Get An Online Business Loan
Borrow from loved ones
This is not the most business-minded strategy, but as a business owner you will be surprised how much faith your family and friends have in your business. Interest can range from 0% to a competitive rate depending on the lender. Typically, no security is required. This is perhaps the best way to find immediate cash even if it is for a short period of time. The problem with such funds is that there is no surety that the funds will be available when your business needs them. Some lenders may also be temperamental and assume that have a say in the way things are being run. So be careful when borrowing from friends and family.
Take a Business Loan
Consider getting a business loan from a bank or non-banking financial institution. Though most lenders have prerequisites such as the age of the business, profitability and cash flow, among others, most often you will not have a difficult time in getting a business loan. As long as you or the business has been maintaining a good credit score and has a good loan repayment history, getting a business loan will be an easy and convenient way to grow your business.
When your business needs immediate funds come home to the specialists. Modern lenders like Bajaj Finserv understand the needs of a small business and address the requirement of additional capital with the lowest interest rates and easy repayment and prepayment options.
From a hassle-free online application process and interest charged only on funds that are being used by you and not on the entire loan amount, applying for a business loan from Bajaj Finserv may be just what your business needs.