Tips to Develop Your Business With an Unsecured Business Loan
Posted: Aug 29, 2019
If you are a business owner, you will agree to the fact that funds run your business. In case of lack of funds, there is absolutely nothing that seems to go right. A business owner aspires to take the business to new heights and in order to achieve the goal, it is important to have access to funds. Business owners can apply for an unsecured business loan with a reliable lender. There are a number of banks and financial institutions that offer loans for business owners. Due to increasing competition in the industry, the interest rates are coming down and the documentation requirement has also become minimal.
There are two types of business loans available in the market today. One is a secured loan and the other is an unsecured loan. In a secured loan, you will be required to provide a security for the loan. You can use any asset that belongs to you and hypothecate it with the lender. The loan amount and interest rate will depend on the market value of the property. On the other hand, there is an unsecured business loan option for you. As the name suggests, the loan is unsecured and you will not be required to provide any security for the same. You can get the loan without hypothecation of an asset. All you need to do is scout the market for a reliable lender and make an application for the loan.
A sole proprietor, partner and corporation can apply for the loan. All you need to do is fill up the application form and submit the documents. You will have to provide KYC documents for all partners in case of a partnership. You will also have to provide business documents which include a profit and loss statement and balance sheet in addition to the projections statement. The lender will estimate your ability to make the repayment keeping the projected statements in mind. If you have a strong credit score, your loan application will be approved within no time. You need to compare the interest rates before making a loan application. Opt for a lender that offers a low interest rate and has flexible repayment terms.
An unsecured business loan can be used for any purpose in the business. You can choose to expand the business facilities or introduce new product into the market. You can use the EMI calculator to estimate the amount of EMI payable by you on the loan. The calculator is available online and is free to use. You only need to provide the loan amount and tenure in order to get an EMI estimate. Based on the same, you will be able to make a decision on whether you will be able to meet the EMI or not. If you think that the EMI amount is very high, you can change the input to achieve the desired result and then speak to the customer executive to help you with the same.
Hero FinCorp is a diversified financial services provider in India. We are an associate company of Hero MotoCorp Ltd.