For any business owner, managing finances becomes difficult whenever there are numerous financial inflows and outflows. In any case, your end objective would be to grow your profit and expand your business. You save some part of your earnings and invest the other part towards your business growth. However, once the business gains speed, it might become difficult to manage your everyday expenses.
This is where a small business loan kicks in. A business expansion loan is an unsecured source of finance that can help you manage your everyday expenses and stabilise your daily operational needs.
Clix Capital helps businesses and entrepreneurs who need capital to manage their costs with flexible repayment terms through the online loan application facility. Such a facility can help businesses manage their expenses well while improving their money management.
What is a Small Business Loan?
A small business loan is an unsecured loan that you can avail of to grow or expand your business, build capital, or meet your everyday operations. Whether you want to hire new employees, expand your workplace, buy inventory, upgrade equipment, or invest in marketing, you can fund it with an SME loan and repay it in easy EMIs spread across several months or years.
At Clix Capital, you can choose a loan repayment tenure of 12 to 36 months, which can be 12 to 48 months for self-employed professionals.
Once you avail a small business loan, you are free to use the loan amount the way you like, for any purpose related to your business. With simple eligibility conditions and minimal documentation requirements, you can easily avail an SME loan if you have a credit score of 700 or above at Clix Capital. You can use a business loan to manage your finances well without pledging any collateral, security, or guarantor. With immediate loan disbursal, you can use your loan amount to cover any of your planned or unplanned expenses.
Business Loan Eligibility Conditions
Applying for a business loan has become extremely easy these days due to online application procedures. At Clix Capital you need to fulfil the following business loan eligibility criteria:
- You must be minimum 21 years of age at the time of loan application
- You should not be more than 65 years of age at the time of loan term end
- Your business must have a minimum turnover of ₹ 1 Crore
- Your business must have at least 3 years of vintage in the current work area
- The majority of your business should be routed via the banking system, reporting audited financial statements for the last 2 years, or capturing turnover in the last year through GST returns
Business Loan Documentation Requirements
Online business loans have minimal documentation requirements that you can easily fulfil from the comfort of your home. To apply for a small business loan from Clix Capital, you need to provide the following documents:
- Completed loan application form
- Passport size photograph
- Identity Proof, which may be your Aadhaar Card, PAN Card, or Government ID if you are a government employee
- Address Proof, which can be your Aadhaar Card, passport, driving license, voter ID card, or utility bills for the last 2 months
- Proof of Ownership
Financial Documents, which include the following:
- PAN Card for a firm, company, or individual
- 6-months bank statement
- Copy of the most recent Income Tax Return form
- Computation of income, audited balance sheet, and profit & loss account for the last 2 years
- Proof of continuity of the business of 3 years, which can be your sales tax certificate, establishment, ITR, or trade license
Using a Small Business Loan to Cover Expenses
1. Budget Management Made Easy
Businesses have a fair share of expenses you need to fulfill regularly, including rent, bills, equipment, inventory, marketing, and others. A business expansion loan can help you manage these expenses and much more without worrying about your finances. However, keep track of your finances, avoid overspending, and plan your expenses well to stabilise your financial future.
2. Financial Security Guaranteed
By managing your expenses well and paying your EMIs on time, you can guarantee financial security for your business. Take stock of your capital and savings and set your credit expenditures using a small business loan.
However, if you do not take care of your EMI repayments on time, debt may accumulate over time and harm your credit. Therefore, one assured way of managing EMIs is to choose a repayment tenure wisely with EMIs you can easily afford within your budget.
3. Increased Focus on Financial Needs
A business loan can improve your business finances, and its regular payment can grow your finances over time. Regular payment of your EMIs helps you concentrate better upon your other financial needs and fulfil them. Accordingly, you can select your repayment tenure and EMIs. Such planning makes it easier to use a loan during your financial needs, be it to buy inventory, upgrade machinery, expand the workplace, or other expenses.
If you are unsure how to manage your expenses, take a small business loan and get the needed finance. With no end-use restrictions, an online business loan makes it easier for a business owner to focus on their financial needs.
A business loan from Clix Capital increases your efficacy in times of financial instability and helps you better manage your everyday business expenses. We offer business loans of ₹ 5 to 50 lakhs that you can use to cover your intended expenses. By calculating your EMIs using a Business Loan EMI calculator, you can choose a loan term with EMIs you can easily afford within your monthly budget.