What are the Business Loan Benefits & Advantages?

While you may depend on your own funds when starting out your business, not all your business needs have to be met out of your own pocket. One of the ways we can support your business growth, even help meet your initial operating cost, is through a business loan. These products are designed with your business plan in mind so that your capital needs and operating expenses are met in the most efficient way possible. If you are still not convinced, here are a few advantages of business loan:

1. Funds when you need them:

We understand that business opportunities come with a strict deadline. Once you recognize an opportunity, it is essential that you can execute your response quickly. But raising funds from angel investors or venture capitalists can take a while, and the opportunity may not wait that long. Our business loans are processed in a matter of days, allowing you to have the funds within 24 hours of business loan approval. You could also have a credit line with us and never worry about raising funds up to the agreed limit*. Remember that you would only need to pay interest when you use the credit line, and not just for having the option available.

2. The right amount:

An experienced business lender will be able to access your requirements well, and be willing to forward the right amount to you. An additional advantage of using a business loan to fulfill large order is that while the funds you can raise from other sources are limited by practical considerations, we can loan out as much money as you need if you can present a compelling business case.

3. Flexible repayment options:

We understand that each business is different, and the time it takes to generate a return on investment varies from one to the other. We also understand the volatility involved in your business. With this in mind, we will work out a repayment schedule that does not put an unnecessary burden on you – and the repayment can be built into your projected cash flows.

4. Stay in control:

While we understand finance, you know your customers the best. When you raise funds through a business loan, you do not have to give out any equity to us, the lender, allowing you to retain the full control of your business decisions and do what is best for the company.

Today many different types of business loans are available in the market. Each of them addresses a different business requirement. Some of the available options are:

1. Line of credit: a permanent loan agreement that allows you to deal with any business emergency or breaks in cash flow.

2. Balloon loans: pay only interest during the term and the principal on maturity.

3. Accounts receivable financing: Get an advance payment of up to 90% of your unpaid invoices.

4. Purchase order financing: Get finance to fulfill your purchase orders, and repay when the payment comes through.

5. Term loan: a great option to finance large, one-off investments. You can use the Business Loan EMI Calculator at SMFG India Credit to understand the repayment schedule.

6. Equipment loan: designed specifically to purchase equipment for your business.

7. Business credit card: a great way to get a short-term loan.

*Terms and conditions apply. Please note that this article is for informational purposes only. Please click here to know more about the types of business loans offered by SMFG India Credit. Alternately, you can contact us via telephone, email or in person at any of our branches.