Grow Business with Small Business Loans

A business is driven by passion and hard work but the foundation majorly depends on the capital. So, fund accumulation is the most essential factor whether you are setting up a new business or expanding an existing one. Business loans can be one way to ease the capital accumulation burden. Be it a small, medium, or large business, loans are a continuous requirement.

A business loan serves multiple purposes for a business. Funding new equipment, expansion of ventures, maintaining inventory, and so on. Let’s understand all about business loans and how they can be beneficial for you.

Explore the Multiple Benefits of Business Loans

The business loan procedure can be a complex task but the myriad of benefits is worth it. Affordable business loans can propel your business towards the right direction of growth. That’s just one benefit to mention. Read on to learn about the multiple benefits of a business loan:

• Business Expansion

The business expansion idea that seems out of reach can be achieved with a small business loan. Yes, capital gives you the opportunity and the power to navigate your business in the desired direction. Business expansion includes various aspects like purchasing new machines and equipment, hiring more employees, paying off debt, payment of bills and salaries, opening a new venture, and so on.

A business loan also keeps your equity preserved. You do not have to shed equity to investors in order to get capital access. A loan can suffice the fund requirements that you may pay off over time.

• Cash Flow Purposes

It’s obvious for businesses to face liquidity challenges at times. However, a persistent shortage of liquid funds can be a problem. With small business loans, this problem can be solved. Liquid funds are crucial for businesses of all sizes, be they small or large. Various ongoing processes require instant capital. So, it is essential to maintain sufficient cash flow to meet the daily expenses of your business. A business expansion loan can be the solution you are looking for.

• Upgrade & Advancements

Machinery, equipment, and human resources are the quintessential requirements for any business. Over time, machines and equipment require replacement and servicing, and new ones are also required. In either case, funds are required.

Expansion of a business also requires upgrading inventory. As a business grows, the need for advanced equipment arises and so, inventory becomes an essential component. Here, a business loan can be quite helpful!

• Marketing and Advertising

In today’s time, mastering the art of marketing and advertising is a must. The cutting-edge competition in modern times demands your brand’s all-around presence, from online to traditional marketing platforms. Digital marketing has become the need of the hour as traditional marketing alone cannot suffice the needs.

Like every other aspect of a business, marketing and advertising also require funds. Digital marketing services pay-per-click advertisement and strategic social media marketing need capital! So, seeking a business loan can be extremely valuable for advertisement purposes.

• Financial Flexibility

Financial flexibility is always a win-win for a business. While certain business processes are pre-planned, some unexpected and unplanned expenses may occur. To fund these immediate requirements, you must have an emergency fund saved. A business loan amount gives you the flexibility of maintaining an emergency fund. Along with this, you may also pay off debts to make your business more stable.

Key Highlights of Business Loans

A business loan can turn your idea into reality. In today’s time, the process of obtaining business loans has become quite easy and quick. Before you learn how to take business loans, it’s essential to check your eligibility. Below are the key highlights of a business loan that you must be aware of:

Eligibility and Amount

If you are planning for a business loan, make sure to check out the eligibility criteria. For a small business, the eligibility for a loan amount is usually easy to fulfilll. Here are the eligibility criteria you may need to fulfill and the amount you are eligible for:

• Who is eligible to apply for a business loan?

Any business whose goal is profit-making is eligible for a small business loan. Whether you are planning to set up a new business or expand an existing one, small business loans can be borrowed. However, there are certain criteria that you may have to fulfill, like:

• A business must be operational for the past 6 months or more
• The business must have a minimum of ₹90,000 turnover for the past 3 months
• It is essential that the business is not listed on the blacklist/excluded list for SBA loans
• The location of the business may also decide the eligibility. Lendingkart restricts certain locations that may be considered high-risk.
• What is the maximum amount one can take as a business loan?

Businesses can get a small business loan ranging from ₹50,000 to ₹2 crore at Lendingkart. Depending on your eligibility criteria and loan requirements, you may get the desired amount. We assure quick disbursements of loans so you can begin your business expansion without further delays! 

Credit Score and Application

Your credit score can play a crucial role in the approval of your loan application. Learn more about the impact of credit score and the business loan process:

• Is a good credit score required for business loans?

Credit score may be a factor to consider when it comes to business loans. Lenders may prefer borrowers with a good credit score. A high credit score is the testimony of your repayment habits. It reflects the trustworthiness of a borrower. Usually, a score above 750 is considered a good credit score. Those below 500 may find it challenging to secure ideal business loan terms. If your credit score is low, there are various ways to increase it.

• How can one apply for a business loan online?

A common question that may come to your mind is “how to apply for a business loan”. At Lendingkart, the process is quite easy and quick. Check out the steps you need to follow to finance your business with our small business loans:

• Check out your eligibility for our small business loans
• Click on apply now to start the business loan process
• Fill out the application form with essential details 
• Attach the required documents and upload the same
• Submit your application to us and we will quickly revert after assessing your application!

Conclusion

Execution of a business idea requires strategic planning, smart minds, and essential resources. To fund resources, business loans can be quite helpful. Facilitating business growth ideas becomes easier with business loans. In today’s time, accessing business capital is not a tough task. You can borrow the required loans within a few clicks and less paperwork. So, start planning your business expansion without hesitation. Explore and find the right business expansion loans to fund the growth of business today!

FAQs

• What are small business loans?

Small business loans are the financial products that can help your business with the required capital. Various banks, NBFCs, and government schemes let you access small business loans. You may use it for business expansion, purchasing new equipment, cash flow purposes, bill payments, etc.

• Who can get a small business loan?

Anyone seeking to expand or establish a business can apply for small business loans. Depending on the lender, the eligibility criteria may differ. Your credit score, business idea, capital requirement, etc., may play a decisive role.