Are you a dynamic entrepreneur whose ultimate goal is to turn your passion into reality? Are you looking at starting or expanding your small and medium-sized enterprise (SME)? Do you believe that all you need is a push to fulfil your dreams? In that case, you can look at any of the several sources of business loans – banks, non-banking finance companies (NBFCs), government institutions, venture capitalists – that are here to work with you as a partner to help actualise your business ideas.
In the current economic climate of India, SMEs are in constant need of funds to expand their businesses, meet working capital needs, or make optimal use of business opportunities. Business loans, either from traditional sources or from FinTech companies such as Capital Float, can provide an optimal solution to meet such financial requirements.
Such loans, besides their obvious benefit of the right funds at the right time, carry several advantages that make their choice a good one. Here is a look at the benefits of availing a business loan for expansion:
1- Helps with the cash flow
Business loans can be either utilized to boost revenues or to gain competitive edge. So a company may look to open a new branch, launch a marketing campaign, add to inventory for seasonal demand spikes, and so on. Any money can be good money, provided it is used efficiently and wisely. You can opt for short- or long-term financing, small loan or large, whichever works well for you. The idea is that the income generated from such avenues goes towards repayment of the loans, and leaves a tidy sum for you to use otherwise. You get to achieve your business goal without having to spend your cash.
Banks are generally the first choice when it comes to applying for loans. Their primary advantage lies in their accessibility and familiarity, especially for long-term customers. Although it is tough to get a loan approved, you carry home the satisfaction of getting away with lower interest rates. Also, unlike venture capitalists and angel investors, you need not part with either ownership or profits from businesses.
2- Simple and speedy loan disbursal process
New age FinTech companies in comparison are catering to a huge demand for business loans by focusing on start-ups and SMEs. With government support and positive economic outlook working in favour of such ventures, there is massive scope for funding new businesses or expansions. Digital lending platforms tap this market by providing business loans, which work well for the borrower as well as the lender. The loan processes are simple, friendly and hassle-free. Capital Float is one such company that offers small business loans in a simple 4-step electronic process, ensuring enhanced customer experience.
All you need to do is fill up the online application form by visiting www.capitalfloat.com from anywhere, anytime, and upload the required documents. The minimal, hassle-free, and user-friendly documentation process is followed up with on-time finance disbursal to borrowers. Specialised companies like Capital Float ensure that your loan is disbursed within 72 hours.
3- Customised solutions for SME needs
Business loans can give the ultimate boost to your company in an efficient and effective way. Banks as well as Fintech lenders like Capital Float believe in the uniqueness of every business, and provide a wide range of flexible, tailor-made loan products that cater to the specific business needs of SMEs in India. You can choose the most suitable option that meets your requirements.
The repayment options are equally flexible. Based on your financial needs, most lending companies provide you business loans ranging from Rs 1 lakh to Rs 1 crore for varied tenures. For example, you can avail business loans for a tenure of 1-12 months with no pre-closure penalties and extremely flexible repayment options (ranging from 12 months to 36 months) from Capital Float. These features are designed to specifically cater to the needs of SMEs in India. SMEs taking loans against receivables can repay it in a single “bullet” instalment at maturity, while those taking unsecured loans can repay through EMIs.
4- Competitive interest rates
Not only banks, certain NBFCs and other lending companies can also offer business loans at competitive interest rates. Capital Float for instance provides business loans to small and medium businesses in India at very competitive interest rates, nominal processing fees, with absolutely no hidden charges. These features make FinTech companies like Capital Float some of the most preferred lenders in the present small business loan market.
5- Collateral free finance
Business loans provide financial support to a very wide range of SMEs, such as B2B service providers, manufacturers, traders, or distributors. Companies like Capital Float work as a partner to provide seamless support to SMEs in fulfilling their dreams. You can avail collateral-free finance, which doesn’t require you to pledge any property or asset to get a business loan. Your business is evaluated based on the strength of your cash flows and expected receivables. Any SME with a minimum of one year of business operations can avail of such business loans.
Very few lenders really believe in embracing new ideas with open arms. New-age lenders however are more willing to invest in new ideas. Capital Float, for instance, provides small business loans to new-age businesses in India along with financing the needs of traditional businesses.