Business loans are your ticket to never-before success!
If you harbour a dream of becoming an entrepreneur or are looking to take your business a notch higher, chances are you would need a considerable amount of capital to kick-start the process. In such a situation, a business loan can help you achieve your dream.
And, here’s everything you must know about business loans.
Why people need business loans
- To buy real estate and for expansion plans
- To buy the latest equipment or for their upgradation
- To purchase inventory
- For working capital i.e. for everyday operations, employees’ salary, cost of maintenance etc.
Features of Business Loans
- Multiple loan programs: Lenders offer multiple loan programs that can suit your varying finance requirements.
- Attractive interest rates: They are available at competitive interest rates.
- Flexible repayment plans: The borrower can choose from different and flexible repayment plans, according to his convenience.
- Hassle-free loan disbursement: Good credit score and possession of all required documents mean that there will hardly be any bottlenecks in getting the loan approval. Such loan requests are processed quickly.
- Minimum or no application fees: Application fee is either waived for borrowers or a negligible sum is charged.
Types of Business Loans
- Working Capital Finance: This takes care of your everyday operations.
- Bill Discounting or Invoice Discounting: It is a quick way to gather funds on the basis of the outstanding sales invoices.
- Machinery Loan: This loan is taken to buy new machines or for maintaining existing machines.
- Loan Against Property: This loan is given against the security of one's property to meet the financial needs of the business.
- Venture Capital or Private Equity Investments: Funding that investors give to start-ups and SMEs in return of equity and subsequent revenues.
- Medical Equipment Financing: This is a lot like machinery loan but is meant for doctors, diagnostic centres, and nursing homes for purchase of medical equipment or for expanding/ renovating an existing healthcare facility.
Documents required for obtaining a business loan
- A business plan entailing a gist of the projections, strategies, and goals.
- Company constitution documents and registration certificates.
- KYC of every promoter and director of the company.
- Bank statements, profit and loss statements, balance sheets, income tax returns, and registration certificates.
Hero FinCorp, a trusted brand, is one NBFC where you can get quick, easy and hassle-free business loans. Working on the motto of ‘Finance Made Easy', it's a go-to place for many big and small firms.
