As a business owner, understanding business funding is a key aspect of your role. In fact, it is as important as knowing the nitty-gritty of where your business spends money on a daily basis. If you don’t know much about business funding, or taking a business loan, take some time to learn the nuances of how it can help. It is definitely one of the habits that you should cultivate as a small business owner.
To get started, find the answers to the doubts and questions that you may have about business funding.
While a business financing is certainly a driving factor behind your business’ growth phase, you can also use it to finance a host of other expenses such buying raw materials, boosting capital finance, consolidating business debt, meeting seasonal demand, hiring additional staff and/or experts, expanding your business, diversifying, buying or leasing machinery, paying for utility materials, etc. In a nutshell, you can use it for any and all business expenses.
Yes, there are. Depending on your needs, you can opt for customised business loans. These usually include machinery loan, working capital loan, business loan for women, loan for traders, loan for manufacturers, loan for service enterprises, MSME/SME business loan, etc. When you choose specific, tailor-made business funding, you can rest assured that it will match your needs closely.
No. In fact, it is cheaper to get a business loan than share ownership and profits by taking on a partner or availing venture capital. All you need to be careful of is ensuring that you choose the right lender. Choosing an NBFC, such as Bajaj Finserv, will help you get a Business Loan on the most affordable terms. You can qualify and apply easily, and get up to Rs.30 lakh at a nominal rate of interest, with no hidden costs. You can also use the EMI calculator to see exactly how much you will have to spend towards the business loan each month.
You don’t have to go through the trouble of securing the business loan with collateral. Most lenders offer finance to you on a collateral-free basis, allowing you to keep your assets safe and secure.
While the tenor for repayment varies from one lender to another, broadly speaking, you can choose a window of up to 5 years, depending on your company’s finances. If you anticipate having sufficient funds soon, choose a short tenor. Your EMIs will be high, but you will be able to be debt-free quicker, and will have to pay less towards interest in total. On the other hand, if affordability is paramount, choose a long tenor. Here EMIs will be low, but total interest payment will be relatively higher.
This depends entirely on you, and whether you opt for a term loan or a Flexi Loan. A term loan is one where the sum is disbursed to you in one go, and is ideal to buy or lease machinery, for example. This is because you will know exactly how much you are going to spend. But, for needs such as renovating your office, which may require periodic payments or may have unexpected expenses, a Flexi Loan option is better. In this format, you can borrow from the total sanction in parts, as and when you need to. Pay interest only on what you use and choose to repay the loan using interest-only EMIs. Then, repay the principal at the end of the tenor. When you avail business funding from Bajaj Finserv, you can opt for the Flexi Loan facility and save up to 45%.
A business loan will only be handy if you can one in a jiffy. This is why most lenders offer approval within 24 hours, with equally quick disbursal. So, if you need to repair machinery, for example, you can rely on quick business loan wholeheartedly.
Most loans come with eligibility criteria, but when it comes to business funding, lenders ensure that these criteria are simple, so that everyone can access finance. When you take this business financing from Bajaj Finserv, for example, you only have to meet the following criteria:
You must be between 25 and 55 years of age
You must have a business vintage of at least 3 years
You should have filed your business’ tax returns for at least the past 1 year
Your business’ past year’s turnover must be audited by a chartered accountant.
Then, all you have to do is submit a handful of basic documents along with a simple online application form.
Now that you know just how easy and beneficial it is to apply for a small business loan, ensure that you add this resource to your arsenal to tackle planned and unplanned expenses equally swiftly.