The Ideal Borrowing Option for Your Business
Posted by HeroFincorp on September 19th, 2017
With the ease of doing business in the country and the various incentives offered by the government, there is a constant growth in the number of startups in the nation. Various types of businesses are emerging that cater to the changing needs of the consumers. In order to expand a business or to make the most of the business opportunity, finance is extremely important. Small business financing is a form of financing suitable for small and medium businesses. A business needs working capital in order to sustain in the industry. In addition, for a business to expand, it is necessary to have adequate funds to reach out to customers in a different geographical market.
Small business loans can be applied for by individuals, public company, private company or proprietorship. The applicant should have completed at least three years in the business and the business should be profitable as per industry norms. In addition, it helps if the applicant has a good credit history. Timely payment of past dues ensures that the applicant has a good credit history that is essential for quick sanction of loans in the future. Small business loans have tenure of 12 months to 48 months, depending on the loan amount and the applicant’s profile.
When it comes to small business financing, there are Banks and Financial Institutions in addition to NBFCs and regional institutions as well. It is important to research and compare the interest rates offered by different lenders in order to find the best rate for your business. The documentation is simple and the entire process is transparent. Documentation for the application includes identity proof, address proof, signature verification, photographs, audited financial statements and pro forma income statement and balance sheet of the business. The decision to sanction the loan will be purely based on the profile of the applicant and viability of the business to generate profits in the future. There is also an option to prepay the loan in the future, thus providing all the flexibility to the borrower. Prepayment of loan will save you from the interest payments in the coming months. With hassle free online transactions, payment of EMI is quick and easy. There are no additional costs involved except for a processing fee of 2% of the loan amount. The entire process is quick and transparent, if the documents are in place; the loan is approved within a period of 10 days.
Small business financing has become a go to option for small business owners who are looking to expand their business and reach out to new customers or to enhance the technology with the purchase of new equipment. In order to achieve the long term goals and serve the business purpose, financial aid in the form of a loan is easily available through Banks and Financial Institutions. The entire process is convenient and hassle free. With a transparent process and a minimal documentation requirement, the loan will be sanctioned in no time.
