Benefits of Business Loan For Your Small Businessby Radha Lakshmi Blogger
When your business is taking baby steps to its dreams and you are in dire need of principal amount, that’s exactly when a business loan comes to your rescue. Getting your hands on an unsecured business loan at the initial stage of business is a complete no-no as being a newbie on the block you might miss out on a high turn-over to support your unsecured business loan. So, bagging a secured business loan puts you in the front rows of approval. Apart from the higher chances of approval, it tags along a plethora of lucrative benefits, too. Let’s run a quick glance through the benefits that you own as you sign up for a business loan for your new business.
1. Strikingly Low Interest Rate
The interest rate of a secured business loan is always kept reasonable as the lender has to bear lesser risk. A business loan for new business with a high-interest rate is utterly unfavorable for the growth of the business because the EMIs would rise up proportionally.
2. Speedy Processing
The primary aim of secured business loan is to get your business going uninterrupted, making up for the shortage of money. In case of a secured business loan, the eligibility criteria is a lot more flexible compared to the unsecured one and so, you obtain the loan amount faster as the only requirement on lender’s end is to evaluate the market value of the collateral before approval.
3. Easy Repayment Terms
The loan tenure stretches longer for a secured business loan unlike an unsecured one. A longer tenure period implies a reduced EMI amount. When your business has just started the journey, it is burdensome to pay a huge amount in the name of EMI. So, before you go for a business loan for your new business, calculate your EMI using the EMI Calculator and succeed in your business with least liabilities.
4. More Capital Amount
For a secured business loan, the loan amount depends a lot on the collateral value at a good extent. Specially, if your business is new or a small one, you still get a chance to avail business loan of a higher amount as valued collateral is aligned with your creditworthiness.
5. Low Credit Score Isn’t A Threat
Talking about a secured loan, lenders tend to give out business loans even if you don’t have a high credit score, as in case of EMIs not being paid, the lender has the option to sell the collateral to manage it.
A secured business loan brings with it several benefits but do keep in mind the fact that it also invites a risk when it comes to your collateral. You need to be very careful about the repayment of the business loan because on being unable to repay the same your asset might slip off your hands. So, while applying for a secured business loan, plan a disciplined loan pay off schedule beforehand.
Created on Aug 8th 2019 13:48. Viewed 302 times.