Benefits of Business Loan For Your Small Business
by Radha Lakshmi BloggerWhen 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.
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Created on Aug 8th 2019 13:48. Viewed 729 times.