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WHICH ARE THE BEST AND FAST BUSINESS LOANS?

Posted on Monday April 18th, 2022

Funds always gear up your business whether its micro-scale, startup or big industry, liquidity is equally important for each one of them. However, availing a business loan is easy these days but all loans are not made equal. Some of them need stringent credit history and heavy paperwork and some have high rates of interest. There are multiple lending institutions that provide business credits where choices can get confused.

Sometimes, business needs are urgent and require instant funding hence here we will talk about some of the options that provide quick funding for your business. Therefore, before you Apply For Business Loan you might know about the risks to ensure yourself to yield out positive returns from borrowing. One can know the total loan cost by using an EMI calculator available on various digital lending platforms.

The borrowing cost and estimated EMI will help you to adjust your loan amount according to your repayment capacity. Well, we have opted out some of the best and fast business loans that can be helpful for your business needs. Go through the options listed below:

Peer to Peer loans: This type of lending is growing rapidly because it has no middleman. However, these loans have higher rate of interest but more suitable for those who require urgent funding. The P2P lending market works through digital platforms that connect borrowers and lenders directly.

The upswing in P2P lending process is due to simple processing as it is very streamlined and the whole process is done completely online with minimal eligibility requirement. The rate of interest payable and loan size depends upon the borrower’s credit score.

Micro loans: If someone owns a small business and looking for funds to expand his/her business, then the micro-loan can perform well here. This loan is provided at comparatively lower rates of interest and has a short tenure making it ideal for small business needs.

These loans are available with non-profit sharing funding options that work the same way as the traditional business loan works. You can freely use the funds secured as per your requirement but lender can ask you for a robust business plan to ensure the loan repayments. The average tenure of the micro loans range from 2 to 5 years.

Business line of credit: This option works like a credit card where you can use your line of credit as per your need and convenience without applying over and over for a new loan every time. The limit allotted to the borrower generally depends upon the profile, business profit as well as repayment capacity.

One can only borrow up to that amount and have to repay it as long as he/she go over the maximum limit and make minimum repayments. You are charged a monthly interest on the loan amount you use as in terms of credit cards.

These are some of the quick funding options for business requirements mentioned above for which you can Apply For Business Loan Online to get approved in less time with minimum documentation and hassle.


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HOW TO REPAY YOUR BUSINESS LOAN FASTER?

Posted on Wednesday March 9th, 2022

However, closing a business loan definitely boosts you to focus more on your business growth but if you are worried how to repay your loan faster and this stress is weighing you down then this blog post really going to work for you.

It is the convenient way to Apply For Business Loan to get your all business requirements to be fulfilled but repaying it is more important to maintain your creditworthiness. Here, we are discussing some methods to repay your business loan faster to enhance your credit profile.

Do part-payments: Well, paying an EMI once in a month is gross but you can also use your extra income to pay off your debt faster. It may charge you some fees but helps you to repay your loan early. Remember, this facility usually comes with secured business loan but if you have opted an unsecured business loan, it is good to know prior about the loan terms and conditions.

Increase your monthly installment: If it is possible for you to cut out your monthly expenses or you have acquired profits from business, then you can ask your lender to increase your monthly installment by certain percentage. The possibility for this remedy will also depend upon lender norms and conditions as well as on the type of loan you have secured.

It would be good to use EMI calculator before applying for the specific loan to plan out your tenure and budget conveniently.

Refinance your Business Loan: In case, you get another better deal and low rate of interest from different lending institution than current one, you can consider an option of balance transfer of a business loan to that lender. Remember, check all the benefits you are going to get before you refinance your business loan.

Most of the lenders allow their clients to foreclose a loan after paying certain number of installments and can also charge you a fee over outstanding loan amount. In addition to that, new lender may also charge you processing fees and other hidden charges. Therefore, it would be good to take into account the total expenses before refinancing a loan.

Set an auto-debit on EMIs: When you Apply For Business Loan Online you can enjoy the feature of auto-pay which can help you to repay your business loan faster as it ensures you not to miss a single repayment, thus saving you from penalty. Some of the financial institutions also offer discounts when you pay through auto-debit feature.

Be wise while borrowing: Borrowing something and returning it on time is really important to maintain your reputation and credit worthiness, so don’t over borrow as if you won’t be able to manage your repayments then it can lead you to huge repercussions. Hence, it is necessary to borrow the money that you can repay easily without hitting your business cash flow.

Other thing to take care of is to avoid unnecessary operational costs till you are serving your loan. Manage your resources and work constantly on the above mentioned methods for early repayment of your business loan.


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WHAT EXPENSES ONE CAN MANAGE WITH BUSINESS LOAN?

Posted on Thursday November 25th, 2021

A business needs a lot of cash for following the changing market trends. These funds are not only required for the survival of the business but also to handle other expenses which are required to maintain the smooth business operations. Therefore, every business must maintain a high level of working capital as it ensures the effective and efficient running of the firm without any obstacles.

In some cases, when you find the working capital is low or shortage of funds, a business owner can Apply For Business Loan and use that loan money to cover the different expenses of the unit. In this post, we have discussed some expenses which you can fulfill with the help of a business loan:

Cost of location: Every business set-up requires a location that is beneficial for both the supplier and the market. Besides that, it depends upon if you buy or rent the place too. Once you set up your firm then your expenses can be related to the maintenance and expansion of the business required as per needs. These things require a lot of money where a business loan can help you with all these.

Cost of assets: When you run some business unit, you need some assets that will help you to achieve success in production and manufacturing as well as increase efficiency. To upkeep these assets and to purchase the upgraded ones, you can secure a business loan. The loan quantum from this loan solution will help you take care of all expenses related to purchasing machinery or equipment.

Costs of employees: Your office staff is very important to mark your business operations. So, you need to take good care of them and offer those bonuses and other benefits. These benefits can range from high remunerations to health schemes, to gifts and provident funds or sometimes with vacation etc. If your business unit has more labor, then you may require a higher amount and hence a business loan will make you sure to take care of employees related expenses.

Costs of security: It is very important for a good survival of your business by keeping your location, machinery/equipment, your production unit and your employees up to the mark. However, it is also very significant to ensure your firm is safe from any theft or malpractices. To get a high level of security, it needs a higher cost where again a business loan can help you to cover such expenses.

Having an eye for all such things while running a production unit is very important. It enables you to identify any flaws and needs to take corrective steps. In case, your profits or working capital is not enough then you need to worry about it. All you need to do is Apply For Business Loan Online or offline via ShubhBank and by securing a good loan quantum; one can clear all these expenses. First, check your loan eligibility for getting an approval on loan and then compare the interest rates on it to secure a best deal ever.


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WHAT ARE THE RISKS IN BUSINESS LOAN?

Posted on Monday October 25th, 2021

A business loan helps the business owners to turn their dream of business ownership into a reality. Most of the lenders in the market offer the business loan to provide necessary funds to the businessmen. However, when you finalize your decision to Apply For Business Loan which helps you to get business off the ground but it has certain drawbacks which we have mentioned below:

Weary Application Process: A business loan has a tedious application process with lots of complexities as compared to other loans. Every lender checks and validates each and every required document that business person puts in application. The lender judges your loan eligibility whether you are eligible or not for business loan which could be an extensive process.

Chances of Rejection: Every lender imposes strict rules and conditions on the business loan approval. Not all the businesses will meet the eligibility criteria fixed by the lending institution. It is always good to know how lender analyze your application before sanctioning you a loan.

Don’t waste your time in application if there are no chances of it being accepted d dealing with rejection can be difficult and left you wondering, where you should go ahead to get funds for your business needs.

Collateral: Every lending institution requires some form of asset as a security before lending you the loan money. Hence, you have to put any of your personal assets at risk if your purpose doesn’t get fulfilled. You may face the possibility of losing not only your business but also the asset you pledged for loan.

High Interest rate: The rate of interest on business loan can be very high which can defer your business development and growth as your business needs to gain profit from the loan money and manage the cost of high interest rate. Moreover, this extra cost makes it difficult to plan other sound financial strategies.

Credit Score: Some of the lending institutions will let you peek at the loan money depending upon the rate of your credit report. Whether you Apply For Business Loan Online or offline, you have to permit the lender to access your credit report and it will always drop your score by few points.

Applying the loan with multiple lenders put your creditworthiness in a worse place than you applied it for first time. If you want to secure a bigger loan quantum, you have to maintain a good credit score by being regular in your repayments and shedding off the debt load.

Loan Approval: Above mentioned factors wouldn’t be an accurate list of setbacks but it’s hard to get a business loan in some instances. Few lenders offer shorter and streamlined ways to get required finances but renowned lenders still ask the business owner to submit a lot of financial paperwork, tax returns as well as marketing plan to get into the door.

It can be almost impossible for new venture to get a business loan as lenders ask for the profit records of last two or three years. Therefore, start ups choose to look for other methods of funding.


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WHAT ARE THE ADVANTAGES OF UNSECURED BUSINESS LOAN?

Posted on Wednesday August 11th, 2021

With COVID-19 restrictions changing daily, every business person is under great deal of stress by disruptions in supply, lower cash flows and increasing overhead costs. Nowadays, many lenders are offering secured and unsecured business loans to keep your business healthy as well as help you to provide the customers, a quality services and products. Being a new business person, when you don’t have much of assets to pledge for loan, you can also Apply For Business Loan without collateral.

Yes, such loans are called unsecured business loans especially for those who don’t have any assets to offer as collateral. It could be great if your firm is growing and you require funding to cover new costs. Collateral is a main difference between secured and unsecured business loan which have a great impact on loan terms which we will discuss in detail.

→ Loan Amount: As there is no requirement of security, the loan amounts sanctioned by lenders are small for unsecured business loans as there is more risk involved to default on payments where as secured loans will generate you a desired loan quantum.

→ Loan Tenure: Unsecured loans are always offered for a short tenure as compared to secured business loans. As there is more risk involved for lender to recover the loan money but if your repay the loan as per predetermined EMI schedule, you can secure other loan for longer tenure easily because of your trustworthy business.

→ Interest rate: Most of the lenders charge higher interest rate for an unsecured business loan than a secured one. Providing a lender with no security makes you more vulnerable to loss in case of default, for which they charge high rates to compensate for that.

There are some advantages linked to unsecured business loans which are mentioned below:

→ No collateral: A secured business loan always demands for some form of collateral but in unsecured loan, one does not require collateral. It means even if you default in case of such loan, one does not risk losing any security to the lender.

→ A chance to grow: If you don’t have any asset to provide a lender, it should prove as a barrier for your business. Therefore, unsecured business loans are great way to build a good credit score as well as these loans have shorter tenure, one can borrow small quantum, repay them quick and can secure another business loan qualifying you with larger loan amounts.

→ Quick processing: The loan processing and disbursal time for unsecured business loan is less as lender does not have to spend time in verifying the value and legitimacy of the asset you offer them. These business loans generally require minimal documentation which reduces its processing time. If you have a good credit history, strong business plan and business documents in hands, you can easily process a business loan within few days.

If you want to Apply For Business Loan Online or offline, start your unsecured business loan application with ShubhBank today. You will experience a zero hassle and zero hidden charges on our business loans.


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ENTREPRENEURIAL FINANCING – THE BEST SOURCE FOR THE GROWTH OF THE INSTITUTION

Posted on Thursday September 20th, 2018

A business loan is typically a type of financing that can be availed by the financial institutions in order to fulfill the urgent requirements of the institution. This credit is also referred to as entrepreneurial finance. Normally, for the growth of enterprises, owners require qualitative machinery and smooth production. It basically involves generation of funds, which will be reimbursed with a certain amount of interest. There is a variety of financing including- trade cash advances, mezzanine, asset-based, micro-financing, bank credits, cash flow credits and invoice. If you require a huge amount of funds for the growth of existing employment.

Advantages of business financing
Promoters usually avail entrepreneurial funding for a variety of reasons. These may include- financing new machinery and equipment, acquire more inventories, expansion to the great extent, sustain operations and many more.
These kinds of credits sources are very advantageous for meeting the capital requirements and for the overall growth of the institution or company. Here is the quick list of advantages of availing financing are as follows-
● Flexibility
● Easy to avail
● Affordable costs
● Lowest interest rates
● Secure process
● Fast payment
● Convenient repayment options
● Sustain and growth of the enterprise

It has several advantages and promoters must assess their trading requirements before applying for this credit. It is necessary to know all the terms and conditions before applying for any type of credit in order to prevent complications in the future. After applying for the particular entrepreneurial credit, you will get immediate access to the funds. If you are looking forward to starting up new venture but do not have sufficient funds. Get a business loan for new business and raise funds for your enterprise easily.

Eligibility criteria for entrepreneurial financing
It is necessary to fulfill “Business Loan Eligibility” criteria
You can avail credit by meeting certain eligibility criteria-
● Age limit- owners age should in between 25 and 55 years old.
● Your enterprise or company should 3 years old.
● Your company’s previous year turnover must be audited by a registered chartered accountant (CA).
● Your company must have its income tax returns filed for at least last 1 year.

Documents required for entrepreneurial business
Owners or promoters must fulfill all the necessary requirements in order to obtain the growth of the enterprise.
Here is the complete checklist of documents required for business loan are as follows-
● Identity proof- PAN card/ Driving license/ voter ID card or passport.
● Residence proof- (electricity bill/ ration card/ passport/ trade license/ sales tax certificate/ lease agreement).
● Bank statement of last 6 months
● Latest income tax return (ITR) along with balance sheet and profit and loss statement for the last 2 years.
● Continuity proof.
● Audited financials of last 3 years
●Other essential documents including- sole proprietorship declaration, certified copy of memorandum and articles of association.

Entrepreneurial credit is very favorable for small-scale, medium or large scale enterprises. It is provided by the money lending companies on interest. The business loan interest rate normally varies from one financial institution to another. To apply for this credit, fulfill eligibility criteria and submit required documents along with the application form to the selected financial institution. .