In the financial year 2020, the number of MSME units in the country was more than 63 million. This sector constitutes a significant part of the Indian economy and contributes around 49.66% of its total exports and 29.7% of GDP. Despite the sector’s economic significance, one of the massive challenges faced by its enterprises was the lack in the availability of formal financing options.
As a small business owner, it is difficult to apply for a loan because financial institutions often consider it to be a risky investment due to the absence of collateral and credit history. Nonetheless, to encourage the growth and expansion of this sector, some top financial institutions extend collateral-free credit amounts of up to Rs.45 lakh with a host of other benefits.
Individuals can apply for an online business loan by fulfilling the requisite eligibility requirements avail of the credits within 24 hours of approval. Following are a few pertinent reasons to apply for these funding options and how they can help in bolstering a business’ growth.
Expand Business and Increase Inventory
These customized loans are specifically designed to expand a business’ scope of operations, upgrade equipment, increase working capital and more.
Further, maintaining inventory is one of the fundamental requisites to keep a business’ operations afloat. This online business loan will allow you to purchase inventory and run your business efficiently through the season. Since this advance comes without end-usage restrictions, it can be utilized to meet these ends effectively.
Recruit New Employees
Upgrading a business does not solely involve integrating technological advancements into its operations. Business owners must also hire employees who can handle the upgraded equipment proficiently. Availing a business loan without collateral can help to settle the salaries of existing employees and pay for the cost of hiring new individuals for the business.
Improve Cash Flow
It is common knowledge that a business can become stagnant if there is an irregular cash flow. According to a report, 82% of businesses fail in foreign countries due to poor cash management. If your business is facing such obstacles, you will need a business loan option to keep the cash flowing, encouraging you to continue the operations unhindered.
Move your Business to Another Location
Your business might be flourishing at the current location, but your current position’s demographics might have changed, and you might have better prospects elsewhere. Needless to say, the shifting of business includes hefty expenses like hiring movers, cost of the new location, cost of paperwork etc. This is where an online business loan comes in handy.
Upgrade Business Equipment
To successfully run your business, it is essential to have proper operating equipment. Upgrading your business equipment can have a significant impact on your business’s cash flow. For small business owners, purchasing or upgrading equipment is not the only option. They need to consider whether they should choose equipment leasing or equipment loans to make the right decision for their business.
Hence, based on these reasons, businesses may require a hefty loan amount for their operations. To this end, applicants must look for borrower-friendly terms to optimize their benefits.
For instance, one should look for pre-approved offers extended by NBFCs like Bajaj Finserv to expedite and simplify the credit application procedure. Such offers are available on an array of financial products such as business loans, credit card loans, personal loan and more. One can check his/her pre-approved offer by providing a few information like name and contact information.
Moreover, to avail of this loan, one should also maintain the eligibility parameters specified by lending institutions. One of the basic parameters that borrowers should meet to avail of a a business loan is to ensure that they have a robust credit score.
With these factors in consideration, borrowers can apply for such a credit online and avail of a substantial loan amount without pledging collateral.
Shelina being a mother of twins spends her day with Deny and Dania. She love to read books and write blogs. She has also been actively volunteer participating in ladies fighting breast cancer.