Why A Business Line Of Credit May Be Better For You Than A Business Term Loan
A business line of credit makes it much easier for you to manage your cash flow. Find out why it’s better than an average term loan.
A business loan is your best option when it comes to enhancing the output of your business venture. It comes with low interest rates so that you can manage your finances much more efficiently, without the constant worry of having to repay the loan amount too fast or at an exorbitant rate of interest. You can choose from a variety of flexible repayment options and select the one that meets your current financial requirements most efficiently. A business loan does not require you to set up any asset as collateral, and neither does it ask for a co-signor to act as a guarantor when you apply for it. Additionally, it comes with a range of add-ons that are provided to enhance your overall customer experience, like online account access and an easy-to-use Business Loan EMI Calculator.
However, the best attribute of a business loan is the unique Line of Credit facility that not only offers all the benefits of a business term loan, but also comes with a slew of additional facilities that make it ideal for a business owner.
Why you should select a business line of credit over a term loan
If you choose to acquire a Business Loan from Bajaj Finserv, you get the unique opportunity to avail a Line of Credit facility, which is also known as a Flexi Lone. The financing company offers this facility to all its business loan applicants, through which you qualify for a fixed loan limit for a pre-determined duration.
When you select the Line of Credit option, your monthly instalment will only include the interest amount to be paid, without the principal component, which comes attached with all payments in the case of term loans. Through the Line of Credit, you only have to repay the principal amount of your loan at the end of your tenor. This makes it infinitely more convenient for you to handle your cash flow. Without the need to repay the principal component at the end of each month, you can dedicate the same amount to improving your business and consequently to boost your profits.
The impressive features of a business line of credit
Here’s a list of reasons why a Line of Credit should be your go-to option when considering an additional loan:
- Unlike any other term loan, your monthly instalment through the Line of Credit facility equals only the interest amount charged for that month.
- It is possible for you to access all of your loan-related information online, and also carry out any transactions through the exclusive customer portal.
- If you wish to part-prepay your loan amount, you can choose to do so anytime you want, throughout the year, without incurring any additional charges whatsoever.
- If you wish to drawdown or make withdrawals, you are entitled to do so without being subject to any extra charges.
- At the end of the year, you can opt for the bullet repayment option if you wish to pay off your loan faster.
- In case you already have a term loan but wish to convert to a Line of Credit, you can do so at any time of your choosing.
- You can also determine the exact interest you are required to pay at the end of each month with the Line of Credit Calculator.
Find out more about the benefits of the Line of Credit facility, and apply online.