Traditionally, when a business needed loan, the owner had a few limited options. The first was reaching out to their traditional lenders and these lenders asked for collaterals, guarantees and so on. Another option was to take loan from local lenders, who charged astronomical high interest rates.
While, the times have changed now and so has the usage, a lot of small business are still stuck in the same decades old loop of traditional lenders and local lenders which is hampering the business growth by not allowing the small businesses to reach the deserving heights.
Today, there are many other ways to find the best business loans for your small business. Here, we discuss some best ways to get the business loans for your small business.
Identify your Needs
The first key step is to identify your needs and goals and be clear in why your small business needs a business loan. Some key questions to ponder over are- Is the requirement to cover working capital loan? Is it a short term requirement or a long term requirement? The answers to these questions will set a base for us to look for the right type of loan that is needed specifically for the business.
How would you like to Repay?
Another critical question that needs to be answered is how you would want to repay the business loan that you are looking for. Are you interested in paying in regular instalments? Ordo you wish to repay as and when your client pays? These answers will decide what type of business loan suits your requirement. A credit line is more apt when you are looking for bulk repayments as and when your client pays you back and a term loan or short term loan works better when you wish to pay in instalments.
Search for the right Digital Lender
A quick search online will help you find the digital lenders who have a right product for you, that suits your needs and your repayment modes. One needs to check how many other businesses from same industry have opted for the lender, reading through the reviews will help one to make the right decision. The benefit with digital lenders is that they offer quick online business loan in India that does not needs collaterals or guarantees and is based on your own business transactions.
Choose the right product
The digital lenders have several products for specific business types. The top digital lenders like Indifi have specialised products for businesses like Retail Shops, Restaurants, Hotels, Travel Agents, E-Commerce Seller and Small Vendors. These business loans are custom made for these businesses and even offer flexible repayments that are connected to their business transactions. This provides a complete flexibility to the small businesses to run their business and effectively utilise the amount for business growth.
Go Through the Terms
A lot of small businesses do not bother to understand the terms and conditions of the business loans. Although the online business loans in India offered by leading platforms like Indifi offer transparent business loans, still one should understand some top terms like prepayment penalties, which some lenders charge if a business wants to close their business loan earlier than scheduled, other concerns to be checked are possibility of getting a top-up as a lot of lenders offer benefits like a loan top-up based upon the good performance of the business loan. Some other important terms are checking the processing fee and any other hidden charges a lender may ask for.
Indifi is one of the top digital lender which offers quick and simple online business loan in India for specific businesses and depending on their requirements it offers short term loan or a long term business loan. They also offer loans without any prepayment penalty or other hidden charges which makes it the preferred digital lender for more than 10000 small businesses across the country. Indifi offers online business loans in India for small businesses from INR 50 Thousand to INR 50 Lacs and have a quick processing time unlike the traditional lenders. They are known to process small business loans as quickly as within 24 hours basis basic business and KYC details.