One of the most important factors for any business to be successful is the steady flow of funds and having funds when the need arises. It’s also crucial for business owners to know the right time to secure funds for the growth of their business. As the MSME sector is growing rapidly, it’s becoming common for entrepreneurs and new business owners to secure business loan for new business. In the current market small collateral free business loans are becoming the preferred financing choice for many, as these loans offer quick and easy approval, flexible repayment tenor, and are collateral free.
The most important thing still is to know the best time to secure a business loan for new business, which is what we have discussed below.
Read on to know more:
At the time of imminent expansion:
The constantly changing economic scenario of India allows ample room for small businesses to expand and grow. And funds are recurred for the growth of any business. There are a lot of financial institutions like Bajaj Finserv which offer unsecured loans at attractive terms, thus allowing business owners to focus more on the growth of their business and not worry about funds.
During economic opportunities:
Using the opportunities presented by the ongoing economic condition is a sign of sound business reasoning, for example, a lot of live entertainment artists and venues have gone digital since the last pandemic to stay afloat in the market. This has in turn required them to invest funds in new equipment like cameras, microphone, editors, etc.
Purchasing new stock:
In the present market scenario where most things are being done digitally. It is a good practice for businesses to have enough inventory so that they can keep up with the market demands. Not lose out to competition when market conditions become normal again.
With unsecured business loans, business owners can increase stock before a busy season. Thus be able to achieve growth during peak seasons.
Procuring New Talent:
The success of any business depends on the people who run it or in simple words the employees of a business determine its success.
A working capital loan allows you to hire a talented workforce that allows you to get the talent you need to achieve the projected growth in the market.
Upgrading Machinery and Technology:
Technology plays a big role in modern businesses, having the latest tech. Machinery allows businesses to stay above their competitors and deliver quality products to their customers.
But new technology is often very expensive and their procurement requires a large amount of funds. Collateral free business loans for new business allow entrepreneurs to fulfill their technological needs and achieve the growth they want.
Research & Development:
In the current market scenario, research and development play a very important role in the growth of almost all businesses. Constant innovation is required so that businesses can offer the best products. Services to their consumers in order to stay relevant in the current market.
But, like all things related to growth, the process of research and development requires a large sum of funds. Business owners may always have the required funds.This is where collateral free small business loans are of help allowing businesses to stay up to date on the current market trends and offerings.
It is easy to qualify simple business loan eligibility laid down by most of the leading lenders. The general business loan eligibility criteria are as follows:
- Applicant should be of age 25 to 65 years old.
- He must have business vintage of minimum of 3 years
- Must have a healthy CIBIL score
The above-mentioned eligibility parameters are the common ones and might differ from lender to lender. It is important to do a thorough research about the lender specific eligibility criteria to avoid rejection.
Leading lenders like Bajaj Finserv offers business loans with easy to meet business loan eligibility criteria and minimal documents. This NBFC also offers pre-approved deals on its products such as business loans. Personal loans, home loans to expedite the loan availing process.
