Well, my new business is getting on pretty well. I have already started hiring new employees, and now, it is time to expand the floor space of my venture. But! Hey! It’s the month’s end, and I am already out of funds. I need to pay my employees as well as stock up inventory. What do I do?
This is how most new businesses see their ultimate days very soon. So, is there any solution to this impending investment problem? SIMPLE! Opting for a short-term business loan.
However, only the mere mention of a short-term loan will not serve the purpose. Understanding their intricate benefits and potential application areas is imperative to chalk out a credible solution.
Keep possession of your company’s ownership
While equity investments can solve your investment problems, they will demand ownership of a significant share of your company. In contrast, opting for a business loan from reliable banks, or even from dependable NBFCs like Bajaj Finserv will suffice to your financial crises without the need to compromise on your company’s hold.
Although you have to make the necessary repayments on time, yet the possession of your asset remains safe with you.
Don’t fret over emergencies anymore
Be it a small or a large business, every venture is bound to face a sudden monetary hitch at some point of time or the other. So, organizing a small business aptly forms the stepping stones of ensuring a successful run; thus, small business loans come to the foreground.
For instance, a sudden inventory demand can bring up such a situation. Under those circumstances, these loans can help you suffice to the immediate cash crunch and repay the borrowed amount with the generated revenue.
Most reliable banks and NBFCs offer a short-term business loan which is unsecured by nature. This means that you as a business owner do not need to mortgage or hypothecate your asset to get your loan amount sanctioned.
However, to get an unsecured loan approved, a business needs to have an impressive credit history laying testimony to the venture’s repayment capabilities. In this respect, taking a working capital loan seems to be the most credible option and has chances of getting approved at the earliest.
Credible lending institutions like Bajaj Finserv also provide unsecured loan disbursal within 24 hours; thereby, aiding prospects to meet their emergency monetary needs.
Tackle a project breakthrough
Often you may receive a project, completing which may prove to be a breakthrough for your company. Failure to grasp these opportunities due to the inadequate workforce or floor space may transpire into a major setback for your company.
Under such situations, availing a short-term business loan from a reliable financial lending institution can prove to be the silver lining of your venture. Through this monetary boost, you will be able to:
- Escalate your employee base necessary to cope with the current work demand.
- Hire or purchase a larger floor space to accommodate an expanded workforce.
Improve cibil score of your business
Taking a business loan and repaying it within the stipulated tenor helps to improve Cibil Score for business. A good CRISIL score, in turn, makes your business borrow a larger amount from a financial institution as your venture’s credit score will speak on your behalf.
These were some of the unavoidable benefits of availing short-term business loans. So, if you are facing a similar cash crunch, avail a business loan today and drag your company out of the monetary mess.