A business loan is a good option for getting your start-up off the ground. You need funds to maintain business operations Draymond Green Warriors Jersey , purchasing inventory and equipment, adding a new business line, product marketing, acquiring other businesses Kevin Durant Warriors Jersey , refinancing and the list goes on. It allows an entrepreneur to keep a hold of the proprietorship of his company, without risking the equity of the company in the hands of shareholders. Additionally, a Business Loan provides the flexibility to move the business in any direction you wish.
Every entrepreneur whether small or big, new or old in business Stephen Curry Warriors Jersey , while seeking financing, tend to bargain over interest rate. The interest rate is the actual cost of doing business. Therefore, if interest rates are too high in comparison to the revenue generated by your business within the same tenure; then it鈥檚 not logical to go for a loan in the first place. Different financial institutions have different loan terms, rates Klay Thompson Warriors Jersey , and repayment conditions. Here are three options where a start-up can apply for a business loan
1. Conventional Banks Banks are the world鈥檚 largest lenders and surely the first option that comes to anyone鈥檚 mind in need of capital. Also, most people are familiar with the bank loans. Most banking institutions lend money to a business based on the value of the business. Businesses with substantial collateral and good track record can easily avail business loan from any bank. All you have to present is your ability to service the complete loan amount by making repayments on time and in full. On the flip side, for those companies that are yet establish, their creditworthiness is very difficult for them to qualify for bank loans. Moreover DeMarcus Cousins Warriors Jersey , borrowers should not expect one-on-one customer services from banks. It is one of the major drawbacks of banks.
2. Financial Companies 鈥?NBFCs The non-banking financial companies offer all major banking services while do not possess a banking license. NBFCs in comparison to banks are not as stringent as banks. The loan application is quickly processed, while there is no major difference in the rate of interest offered by banks and NBFCs. However, today NBFCs are offering competitive interest rates to lure more customers.
3. Peer to Peer (P2P) lending It is an alternative option of the traditional financial institution for loans. The P2P Lending platforms provide business loans, ranging from working capital to equipment financing. It follows a crowdfunding model where lender connects directly with the borrowers without the involvement of middleman such as banks. You can borrow a fixed amount of money for a fixed tenure with a fixed interest rate; without any collateral. As a result Draymond Green Youth Jersey , P2P lenders have completely revolutionized the business lending landscape by making it possible to get Low Interest Rate Personal Loan in minimum duration.
If you are a small business owner looking for best loan options then you will find P2P lending platforms most accommodating. You can apply for a P2P loan of up to Rs. 10 lacs for business funding and business expansion. It is the best option for start-ups and budding entrepreneurs to gain short-term finance. With new RBI guidelines, it is perhaps the best time for you to give your business a head start by availing the business financing with
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