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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 ARE THE REASONS BEHIND REJECTION OF BUSINESS LOAN?

Posted on Friday February 11th, 2022

It involves a great amount of money that has to be invested from time to time to run a business smoothly. Many of the business owners who just had started their business or had a small business don’t have ample amount of cash to ensure the smooth operation of the business and they have to Apply For Business Loan. Sometimes, it is not easy to get approved for loan and borrower face a rejection by the lender. Here, we have mentioned some common reasons behind a rejection of business loan:

Company’s Credit Rating: This factor plays a major role in availing a loan against business as it reflects the creditworthiness of business person. Every lender account on the score, business credit rating as well as individual credit score. The rating depends upon the financial history of business, tax return details; business registration details, personal credit score etc. Therefore, low rating of business unit as well as owner’s low credit score brings a greater chance of loan rejection for business.

Insufficient Collateral: It could be a major reason behind the rejection of business loan for small scale industries. Most of the lenders require any physical asset of an equivalent weight age to loan money to ensure the repayment of the loan but small scale industries don’t have adequate collateral to offer as a guarantee. As the loan quantum depends upon the value of collateral and insufficient collateral makes the lender to step back from giving you a business loan.

Poor Documentation: To avail any loan, an applicant has to provide all the necessary documents. In case of business loan, one has to provide the papers regarding company’s account statements, contracts, business plan, tax return details, legal documents, financial statements etc. Sometimes, businessmen are not able to provide accurate papers which may lead to the rejection of business loan. Hence, loan applicants have to be precise about the paperwork before they Apply For Business Loan Online or offline.

Inadequate Cash Flow: Every lender takes an account of your cash flow earned through business before approving a loan to you. Generally, small scale businesses and start-ups often struggle with adequate cash flow to fulfill the loan terms and conditions and lender may reject your loan application as your financial situation risks your repayment ability. Therefore, new and small production units need to manage their cash smartly and in better way by sharpening their accounting skills to avoid any kind of loan rejection.

Small loan quantum: Most of the times, small scale industries apply for a smaller loan amount as they don’t have a need of too much cash and their operational units are easily manageable with less funding but the lower loan quantum is not profitable for most of the lenders when it is compared to expected return. Every lender wants to go for larger loan amount as it is earns more profit for them. Hence, a loan seeker needs to evaluate all the necessary aspects of their company and underwrite the loan amount for which they get easily approved for.


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HOW SHUBHBANK WILL FUND YOUR NEEDS WITH A BUSINESS LOAN?

Posted on Wednesday December 22nd, 2021

With the advent of 2022, we are entering into a new year. Hopefully, this year would be time for innovations and new ideas. Generally, every year, people tend to plan for similar things as their new year resolutions. Some of the business owners or self employed are trying to improve their services and profits while salaried employees are struggling to achieve their targets. Many people are making strategies for new financial year whereas some are planning for relief at exotic locations. Therefore, everybody is looking for a new beginning.

The world is growing at a fast pace which is bit hectic for everyone to match the frequency but the after effects of Pandemic has given us a reality check. Nowadays, people the importance of good health and wants to be physically and financially healthy. Since the past era, mankind has not witnessed any pandemic that brought the entire globe under lockdown. Whether a country is grown or under-developed, every working person is sitting at home and trying to be safe by following social distancing.

In past times, we have observed a drastic change in terms of how business companies are using upgraded technology and data. The digital platform is used to communicate, buy, and sell the products and services by giving the customers an experience at their personal space at their fingertips. The e-commerce sector is already expanding pace and growth in the market with each year such as Fintech and many more.

With the Corona virus Outbreak, some sectors have continued to show improvements like education, entertainment, e-commerce and IT firms. With their significant efforts, our country’s economy has continued to move upwards. Nowadays, entrepreneurs have taken note of this and they have understood their need to improvise their business to be assessed with online world. However, everybody wants to grow their business but there are some restrictions, most significantly funds which can be fulfilled, if you Apply For Business Loan that helps you to access the required funds easily.

ShubhBank is one of the renowned fin techs in the country to distribute all types of loan solutions. We disburse number of loans such as Personal Loan, Business Loan, Home Loan, Mortgage Loan, Loan against property and many more. Our NBFC has a presence across every city in Pan India. We have witnessed how the world is upgrading digitally and hence launched our website ShubhBank.com to utilize the online space to expand ourselves and help our clients and channel associates nationwide.

If we look into past decades, it has been proved that humans have always defeated the grave disasters, thus Covid-19 pandemic will not be an exception. While we sit in home working in lockdown, some of us would be filled with some innovative ideas that they would like to pursue in coming days.

You will be amazed to know that we at ShubhBank, wishes to tell you that if you have a robust idea for your business, we also believe in you. We are aimed to source your plans financially to expand your growth in the market when you Apply For Business Loan Online. Hence, visit our branch or get an access online to ShubhBank.com and share your needs and ideas with us.


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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.