All You Need To Know About Small Business Loans

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

1. To buy real estate and for expansion plans
2. To buy the latest equipment or for their upgradation
3. To purchase inventory
4. For working capital i.e. for everyday operations, employees’ salary, cost of maintenance etc.

Features of Business Loans

1. Multiple loan programs: Lenders offer multiple loan programs that can suit your varying finance requirements.
2. Attractive interest rates: They are available at competitive interest rates.
3. Flexible repayment plans: The borrower can choose from different and flexible repayment plans, according to his convenience.
4. 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.
5. Minimum or no application fees: Application fee is either waived for borrowers or a negligible sum is charged.

Types of Business Loans

1. Working Capital Finance: This takes care of your everyday operations.
2. Bill Discounting or Invoice Discounting: It is a quick way to gather funds on the basis of the outstanding sales invoices.   
3. Machinery Loan: This loan is taken to buy new machines or for maintaining existing machines.
4. Loan Against Property: This loan is given against the security of one's property to meet the financial needs of the business.
5. Venture Capital or Private Equity Investments: Funding that investors give to start-ups and SMEs in return of equity and subsequent revenues.
6. 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

1. A business plan entailing a gist of the projections, strategies, and goals.
2. Company constitution documents and registration certificates.
3. KYC of every promoter and director of the company.  
4. 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.