The Indian market ranks as one of the fastest growing on a global scale. Other than the positives of a fast increasing urban populace, the national economic scenario is on the verge of a financial transformation.
As a business, this can be a highly profitable turn of events but, your company may also end up facing the following:
Your business has ample customer base and a healthy turnover with an adequate surplus. Now, you are looking for ways to grow your operations and expand.
Your business is facing a financial crisis. Severe competition may have disrupted your turnover. Numerous enterprises come across such situations and end up filing for bankruptcy because they don’t have access to funds when required.
For both the situations mentioned above, a short term business loan can help you in more ways than one. It is unrestricted and can be used for various purposes that can aid your company to move forward. Also, these loans can help you if you are looking to set up a new branch.
Check out the following to determine whether such a loan is right for you.
What features do these business loans come with?
- A large amount of financing
Financial institutions like Bajaj Finserv provide Business Loans with financing up to Rs. 30 Lakh. They also have pre-approved offers that lower the time taken for availing financing by making the process simplistic.
Pre-approved offers also come with personal loans, home loans, and several other financial products. You can find your pre-approved offer by providing some basic details.
- Quick approval and disbursal
These loans can be approved and disbursed within 24 hours, making them easily available in times of urgent financial needs.
- Uncomplicated documentation process
A short-term business loan only requires minimal documents for approval. You have to furnish the following:
- KYC documents (Aadhaar, PAN, Passport, Voter ID, Driving License, etc.).
- Proof of business (any valid certificate or registration).
- Address proof (any KYC document containing the permanent address or latest utility bill).
- Bank account statements.
- Income tax returns for at least the previous year.
- Audited business turnovers by a CA for at least the previous year.
Easy-to-fulfil eligibility criterions
Eligibility requirements are minimal when availing a business loan. You have to be between 25 and 55 years of age and run a company with a vintage of at least 3 years.
Prolonged repayment tenure
You can repay the loan within 12 to 48 months. Thus, it doesn’t become a financial burden, and you can concentrate on your business operations freely.
For what can these loans be used?
- For purchasing new equipment
Out-dated equipment will only cause difficulty in your operations. Hence, a short-term business loan can help you buy new ones and achieve the performance you seek.
For purchasing plant and machinery
Business loans can supply you the funds required for buying plant and machinery when establishing your company.
For restocking your inventory
You can never let your inventory run out of stock. It will otherwise cut-off the production line and bring your business to a standstill. Instead, you can utilise the loan to restock and continue enterprising.
For buying or leasing new business premises
One of the superb ways of using business loans for business expansion is by buying or leasing new premises in another location. As a short-term business loan comes with higher amounts, you can avail sufficient funds to execute your expansion plans.
For consolidating debt
Businesses under considerable debt can look for these loans to consolidate the same. Piling debts can slow business operations and hamper valuable relations with suppliers. Opting for financial assistance can help owners relieve the burden.
Note: You can also utilise this loan as a form of refinancing. Take advantage of the low business loan interest rate and clear the debts with high rates of interests quickly.
Acquiring a new company will expand your business remarkably. For that, you can apply for business loans and utilise the funds for the acquisition.
For marketing your business
Calculative marketing campaigns are essential for reaching out to potential customers. So, utilise the business loans to finance your small business marketing plans effortlessly.
These are just some of the ways how a short-term business loan can help you in times of need. You should consider all of the above to determine how to utilise the credit for your company.