Types of Business and their loan requirement
by Finway FSC Empowering People FinanciallyThe
nature of the business determines the goals and the funding required. The
bigger the goals are, the larger the sum of money will be needed. So if you are
in Delhi and wish to expand the business in other parts of the country, you
will still access Business Loan in
Delhi only as it is here that you operate. Other than the location, Loan Against Property is also an
option for secured loans where you need to submit a collateral. Let us
elaborately understand the types of loans required for various businesses:
1. Sole Proprietorship: As the
name indicates, this is a solely owned business. In this type of business, a
secured loan or an unsecured loan is possible. However, all that depends upon
your personal credit score. You will be surprised how a personal credit
score remains vital even though it is Business Loan. In this case, since you
are a Sole Proprietor of the business, the creditworthiness of the business is
dependent on your personal credit score.
2. Partnership Firms: When a
sole proprietorship is expanded and divided into two firms, such an agreement
is called a Partnership firm. Even in this case, the loan can be secured or
unsecured, but the credit history and worthiness of the partners will be
scrutinized by the lenders. Only when the credit history of both the partners
is proved appropriate and within the prescribed limit, a Business Loan In Delhi or if you are operating in Mumbai
will be sanctioned.
3. Public Limited Companies:
Such companies are usually if a large scale and have shares floating in the
share market. Such companies garner finances by selling their shares. They also
apply for Loan Against Property;
however, that is usually for personal reasons and only founders do that. The
founder's actions do not affect the firm in any way and the company can enjoy
the status quo.
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Created on Oct 12th 2019 01:22. Viewed 495 times.