Flexi Business Loans: The Easy Way To Manage Business Finances

Flexi loans are convenient and the best source of finance for a small business. It offers plenty of growth opportunity to the business by providing funds to fuel growth. Under this facility, the business owner gets the highest loan limit that he qualifies for. The borrower can borrow the amount as and when required up to the limit and within the loan tenure. He does not require to file new loan applications every time or wait for a long time to get access to funds.

So, whether the business owner requires funds to meet some unpredictable expense or there is an urgent cash requirement, the Flexi loans can be highly beneficial. Let’s take a look at why Flexi business loans are the most convenient way to manage business finance.

Loan limit is the maximum amount borrower qualifies for

The Flexi loan limit is the maximum that the business owner qualifies for. Thus, it provides sufficient finances to meet all range of purposes. For example, if the borrower is starting a restaurant business, he may require money to build a kitchen, hire chef/cook, add décor to the restaurant, etc. Besides, there may also be a need for a cashier’s computing system, point of sales system, and an accountant to help in managing finances.

To meet all these expenses, a Flexi loan is an ideal option as it has no restrictions regarding how much money to withdraw and use.

Instant Funds at the time of Need

One of the best features of the Flexi business loan is that it lets the borrower borrow money as and when required. It offers quick financing at the time of need. For example, a business owner may meet a spike in demand during a particular season. He can use a Flexi loan to fund his seasonal needs, such as payment to suppliers, purchasing raw material, hiring additional human resource, etc.

The interest is charged only on the amount that is utilised and not on the loan limit that is sanctioned. This one of the primary advantages of this loan type that the business owner has to pay interest only on the loan amount borrowed and not the entire limit sanctioned for him.

For example, if a manufacturer is sanctioned a Flexi loan limit of Rs. 5 lakhs and borrows only Rs. 2.5 lakhs from it, he will have to pay interest only on the amount used, i.e. Rs. 2.5 lakhs. This saves from paying interest on the entire loan amount the borrower is eligible for, unlike other business loans. This makes the loan for business affordable while having the security of money readily available always to meet future needs.

Makes EMIs Affordable

This instant business loan also gives the choice of paying EMI, which includes the principal plus interest component or just the interest component. This makes EMIs affordable and cash inflow easier for the borrower. And if the borrower chooses to pay the interest component only, the principal amount will be paid at the end of the loan tenure. Thus, the typical loan repayment tenure can be chosen when the borrower expects the business to start generating revenue to support EMI payment.

Withdraw and Repay Easily

A Flexi business loan also offers the freedom to borrow/withdraw money as many times the business owner requires. It allows the borrower to make part repayments of the loan when he has excess funds. Further, this also allows the borrower to re-avail the funds when in need. This flexibility makes it the ideal choice for business financing.

The advantages mentioned above make Flexi loan one of the best and ideal financing option for the business owners. It can be used to scale up the business, pay salaries, buy machinery/equipment, to fulfil working capital requirements, etc. The loan can be applied online through the loan App easily.

Sheena is an experienced and knowledgeable financial advisor, ready to work with you to ensure you and your business future. She also emphasizes the need to adjust investment plans as your goals and needs change. https://ziploan.in