Entrepreneurship is exciting, but risks are inherent to it. Establishing a small business and running it successfully is a challenging task for most. So, putting a small scale business on a growth curve often requires immediate and sufficient funds.
A short term business loan can bridge such cash flow gaps. That said, it is imperative for you as a business owner to be aware of the inherent advantages. Here’s how short-term loans can give them access to immediate cash preventing further interruptions.
Fast capital for conducting various operations
Getting quick cash to carry out several operations of a business is one of the key benefits of these loans.
There are multiple challenges in small businesses, especially over the period of their business cycle. Apart from helping owners stay competitive by expanding their firms, it also serves at times of emergencies.
For instance, one can purchase machinery, hire employees, and even buy new software to get an edge over one’s competitors. So, catering to a plethora of needs, short-term business loans can make a difference in one’s business resources and overcome crisis too.
The application process is shorter than the usual ones
Getting an approval within a few hours after applying is another principal advantage of this loan. With an easy application process, the loan amount is disbursed within a period of 24 hours.
So, getting immediate liquidity is no more a week/month-long activity. A borrower can cover all his business-related expenses by applying for this short-term loan.
Easier to qualify
These short-term loans have remarkably high approval rates. Thanks to the simple business loan eligibility criteria which comes with the following norms:
- A borrower needs to be from 22 to 55 years during the time of application.
- He/she must be a citizen of India.
- He/she needs to have a business running for at least 3 years.
Involves hassle-free paperwork
Additionally, these loans require relatively minimal paperwork. Following are the documents one needs to furnish while applying for the credit:
- KYC documents.
- IT returns files of the business for minimum the past one year.
- Lastly, he/she requires providing the last year’s turnover audited by Chartered Accountants.
Lastly, a short-term business loan doesn’t require pledging any asset. As there is no fear of property seizure, a borrower enjoys a tension-free life. So, owing to its unsecured nature, this loan variant makes way for the borrower to stay focused on organising the small business accordingly rather than managing debts.
Availability of Flexi Loan facility
Flexi Loan facility is a new-age feature which allows a borrower to withdraw money as per a pre-set loan amount. The significant benefit is that he/she can pay the interest amount as the only EMI. This scheme allows the borrower to repay the principal amount at the end of the loan tenure.
This is just one of the ways how short-term business loans can be a convenient choice to meet unexpected expenses or grab a business opportunity. However, you may have to pay a little higher business loan interest rate, if you don’t possess a good CIBIL score.
Leading NBFCs like Bajaj Finserv offer short-term business loan designed for entrepreneurs. They also provide pre-approved offers on short-term business loans, personal loans, home loans and a host of other financial products & services.
You can check out your pre-approved offer by submitting a few essential details on their online portal. With fast and simple steps, this is indeed an easy and time-saving process.
Note: Try to maintain a healthy credit history and a high CIBIL score always so that you get a loan approved at the earliest.
Having a good credit score helps to fetch the short-term business loan even if you have existing debts. Therefore, manage your finances well by availing this loan and expand your business successfully.