Small Business Loans: Major Perks for Startups Businesses
Startups in India have emerged as the backbone of the economy. With the government taking initiatives to provide a seamless funding pool and banks introducing low-cost loan options, startup businesses are thriving in India. A detailed study of 2014-2023 suggests that there have been more than 122,000 tech companies and startups alone.
The biggest factor contributing to their rise has been the emergence of easy and quick small business loans. Keep reading as we discuss how startups can benefit from small business loans that go beyond capital funding to establish the business.
Small Business Loans Benefitting Startup Businesses
Small business loans are designed to address the needs of startup businesses while also providing flexibility for tailoring the amount and tenure. Here’s how taking a small business loan can help your startup grow:
- Launch your Business
India is a country with smart minds and unique ideas. The biggest challenge is the lack of capital outlay to practically implement the ideas. This is where a small business loan comes into the picture by providing initial capital funding with minimal interest rates and flexible tenure.
- Expand your Business
Owning a business is one thing and running it for profit is another. Often a lack of capital stops business owners from expanding their business ideas with marketing, setting up a new factory or even buying updated machinery and equipment. A small business loan is designed to offer a considerable amount, depending on the business level, to implement expansion strategies and repay at a flexible pace.
- Tailored to Meet Your Needs
Possibly the biggest advantage with these loans is that they can be tailored to meet specific business needs. Whether you need a loan to establish your business, expand it or to meet monthly expenses to run the company, a small business loan is ready with a modest amount.
- Quick Application, Approval and Disbursal
The exhausting experience of waiting for months to get a loan sanctioned is one of the biggest hurdles startups in India face but with small business loans breaking these barriers, loans have become an easily accessible aspect. You can apply for a loan online and get the verification done while sitting in the comfort of your house. Additionally, for a small business loan with a reputed financial firm like Lendingkart, approval and disbursal are done instantly to ensure a smooth flow of your startup.
- Collateral-Free Options
When you start a business, one aspect that appears non-negotiable is keeping control of your business. Small business loans are provided without collateral to ensure that the business is within your control. These types of loans are also called unsecured loans and you do not have to provide any security to get a loan sanctioned.
- A Window to Enhance Credit Score
Credit score plays a vital role in helping you secure business loans in future for a rather huge amount. Repaying your small business loan timely enhances your credit score thus expanding the window to easily secure additional loans in future.
The Bottom Line
Now that you know the perks of applying for a small business loan the next step is to find a credible lender who believes in your dreams and provides financial help without putting you under an extreme repayment and interest rate burden. For instance, Lendingkart provides business loans up to ₹2 crore with a flexible tenure and a disbursal within 3 days of getting approval.
Additionally, now you can explore different types of business loans like working capital loans, Commercial loans for small businesses, Line of Credit Loans etc.
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