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Top 8 Business Loan Benefits for MSME

Clix January 21, 2021

 

Any business requires a constant inflow of funds for the maintenance and management of its working capital. Businesses require capital to boost their profitability and ensure smooth functioning. That is why applying for a business loan is a common phenomenon among businesses. Entrepreneurs and business managers can use the funds received for a variety of purposes, like:

    • Increase working capital.
    • Expand physical location.
    • Build credit for the future.
    • Purchase business machinery or equipment.
    • Invest in business marketing.
    • Buy inventory.
    • Add a new product line.
    • Hire or train workers.

To meet financial needs for any of the above purposes, businesses avail business loans from different financial institutions. Earlier, most business owners approached their bank to avail a loan, but banks do not provide loans that easily. They can take a lot of time, effort, and paperwork to approve even a small amount of loan. But fortunately, this has changed, as there are NBFCs that have made the process of application for a business loan and approval simple.

 

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Many business owners think that taking a business loan can drag them further into debt. But in reality, business loans can actually benefit your finance. Here are a few ways how.

What is a Business Loan?

Business loans are unsecured loans that financial institutions offer to businesses. By availing such loans, businesses can meet their business expenses. These are small business loans in which the loan amount up to ₹ 1 crore. You can apply for a business loan to overcome your financial crunch on an everyday basis, as they generate a balance in your cash flow required for smooth business operations.

Whether you are short of cash due to off-season, or you need more capital to meet the demands during peak season, you can avail of a business loan to benefit your finance. Whether you are a trader, retailer, wholesaler, service provider, or manufacturer, avail a small business loan and get going.

Financial Benefits of Business Loans

If you are a business owner, you already know how important finance is to your business. You would require adequate amounts of money to fund different business operations and expansions. Whether you want to buy new inventory, open a new office location, or even pay salaries.

Although businesses can use their loan amount for a variety of purposes, they still contemplate whether to take it or not. If you believe that a bank is the safest place to take a business loan, it’s time to rethink. SME loans taken from reputed NBFCs like Clix Capital can be beneficial for your business in many ways. Let’s see how.

Create a Robust Infrastructure:

As a company, your ultimate goal is to provide uninterrupted, seamless services to your customers and clients, for which you need a well-defined infrastructure in your business. You need to possess sufficient funds to make that happen. Some of the most essential infrastructural amenities include delivery channels, payment gateways, storage houses, etc.

Flexible Terms:

Business owners can apply for a business loan up to ₹ 5 – 50 lakh, depending on the financial requirements of their business. The loan term can be 12 to 36 months, depending on the loan amount and repayment terms. If you are a self-employed professional, you can avail an even longer repayment period of 48 months. As a business owner, you can choose the tenure as per your business predictions and estimations

Management of Working Capital:

When your business needs funds to fulfil its working capital requirements, business loans can make sufficient working capital available at your disposal. Using this capital, you can maintain your cash flow during both good and bad phases. As economic conditions are bound to change, a business loan can help in strengthening your financial stability.

Collateral-Free Business Loan:

Since the business loan is collateral-free, the business owner does not need to put any asset at stake. This makes it convenient for you to avail funds for your business without putting anything of value on the line. In addition to that, document requirements are minimal, thereby making the application and approval process faster and easier than ever.

Build Credibility:

Business loans are a great way to build your business’s credit record and improve business credit rating. When you repay your business loan EMIs regularly on time, your credit score gets a boost and your business is considered eligible to avail a higher loan amount in the future.

Debt Restructuring:

As a business, your funds might be coming from multiple sources, such as your bank, local lenders, family, and friends, all at different interest rates and loan terms. Consolidating all these loans into one that can cover them all at a single interest rate can help you save money. This way, you can repay your loan in a manageable and timely manner.

Business Growth:

A business needs several essential things for smooth operations, including technology, manpower, and finance. Among them, finance is a crucial aspect that can ensure the satisfaction of all other requirements. Therefore, cash flow is extremely crucial for your business growth and expansion. You may speed up your business by purchasing the latest equipment, hiring more employees, or arranging another facility for expansion. You may use your loan amount as per your business needs.

Hence, a business loan can provide several financial benefits. You can apply for a business loan and use it in your own way to enhance profitability of your business. However, it is imperative to choose the right loan provider through whom you can secure your funds faster. Clix Capital is one of the most reliable loan providers that offer lucrative plans on collateral-free business loans with an easy and quick application and approval process. Apply here: https://www.clix.capital/business-loan/

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You can also reach out to us at hello@clix.capital or call us at 1800 200 9898

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