Receiving a small-business loan is a wonderful experience. It might lead to new prospects for growth and keep you ahead of the competition. 

But what comes next?

The answer you provide to this question will have far-reaching consequences for your company. You must assess your long-term objectives as well as your present financial demands to ensure that you are spending your money effectively. This article will show you how to leverage your small business loan to grow your company.

How to Expand Your Business

The guiding philosophy is to focus on items that promote development and expansion and make prudent spending selections that result in a Return on Investment (ROI) on borrowed funds. The worst-case scenario is if you use your loan inefficiently and end up having to borrow additional money later.

If you’ve gone through the small business loan application process, your goals are probably quite clearly stated. You’ll have had to demonstrate efficient business management to be accepted; make sure your expenditure matches this!

Don’t spend because you can, and don’t let the flush sensation lead to overspending on the business credit card.

How to Use a Small Business Loan

Here’s how to make the most of your company financing:

1. Invest in modern equipment.

Many production, distribution, and R&D firms, as well as other enterprises, might profit financially from the installation of new equipment. You may be able to provide new goods, simplify your processes, or reduce your material or labour expenses, for example.

2. Improve your internet visibility

A small business loan might be used to upgrade an old website or to incorporate new e-commerce features. You might also invest in advanced lead-tracking or customer relationship management (CRM) software to create new business from prospective and existing clients.

3. Increase brand awareness

A loan can also be utilised to hire a dedicated worker or collaborate with an outside firm to boost present advertising, public relations, and other marketing initiatives. A well-planned branding campaign may raise client awareness and create the groundwork for future sales.

4. Introduce a new product line

It costs money to create and advertise a new product. Consumers may request that you extend your present product range, or your study may reveal an unmet market demand. In any case, investing in a new product line might be a wonderful strategy to propel your company forward.

5. Expand your inventory

Successful entrepreneurs understand that they cannot sell a product or service that is not in stock. Retailers, in particular, confront the seasonal difficulty of ordering adequate products ahead of peak seasons. Service organisations understand the importance of having enough workers to take care of their clients in a timely way.

6. Break into a new market

Now may be a good moment to create a new store, office or warehouse in a different area. Alternatively, you may recognise a potential for your company to service a new vertical market, such as healthcare, education, or government. A small-business loan can help you make the choice to enter a new market, which can pay off handsomely in the long run.

7. Renovation or expansion of your facility

Expansion of your office, modernisation of your store, or the addition of customer-friendly facilities may all help your business flourish. This sort of capital investment might be an excellent match for your new loan.

8. Overcome the “growth gap”

Successful firms understand that there may be a 30-day, 60-day, or even longer wait between selling a product or service and getting money. This can be a significant difficulty for a developing business whose present spending is expanding to serve a greater consumer base. A company loan can assist bridge this gap, allowing you to keep moving forward without worrying about cash flow.

How to Get the Most Out of Your Loan

The administrative aspect of things is less exciting than your new bank account balance, but staying on top of it ensures that your small company loan is used wisely and effectively and minimises frequent business spending blunders.

Here are the top three suggestions for you:

Keep the loan in a separate account from your regular business account and transfer funds as needed.

This phase adds another layer of thought to purchases, making it difficult to spend impulsively. The worst-case situation is expenditure creep, in which daily business spending consumes the loan and limits your ability to make large investments.

Don’t spend the entire loan at once.

An unexpected infusion of income may be thrilling and powerful for small company owners, but it is critical to maintaining discipline. Consider each projected expenditure and compare it to your business objectives. Maintain a budget so you can see where your money is going. If managed effectively, extra money is a tremendous chance to take your business to the next level.

Maintain a positive working connection with your lender.

Maintaining communication with your lender and paying back timely (or ahead of schedule if circumstances allow) is an excellent strategy to maintain a positive relationship. A solid rapport gives a better platform for this sort of communication if you need to borrow more at a later time, temporarily delay payments, or address any other unanticipated situations.

Way To Go

Whatever you decide, think of a company loan as an investment that will pay off in the long run. You’ll be utilising the cash wisely as long as you focus on strategies to enhance your income and profitability.
FlexiLoans has years of expertise assisting small business owners in taking their operations to the next level. Contact us if you have any concerns regarding how to qualify for a small company loan, how to spend your loan wisely, or how to avoid typical business spending blunders. We will gladly answer your inquiries.

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Small companies have exploded into a variety of industries in recent years, notably retail, e-commerce, and hospitality. While festivals obviously boost these industries, individual company owners must nevertheless examine their effect. 

Other than personal loans, there were few choices for businesses previously. Loans, generally, used to be secured, with the borrower required to furnish assets as collateral for the amount borrowed. Yet, as the variety of start-ups and enterprises evolves, lenders are giving the option of unsecured business loans in order to capitalise on the rising demand. 

Unsecured commercial loans, on the other hand, carry much higher interest rates than standard loans. It is one of the main reasons why many firms are hesitant to seek an unsecured loan. However, few individuals are aware that the benefits of obtaining an unsecured company loan outweigh the drawbacks.

Here Are The Benefits Of An Unsecured Business Loan:

There Is No Collateral

As the name implies, these commercial loans are unsecured in character. You are not required to offer collateral in exchange for credit. This option is especially advantageous for new enterprises who do not have any tangible assets to provide as security. As a result, obtaining unsecured company funding becomes considerably more viable for young entrepreneurs or businessmen who are just starting out.

Simple Application Procedure

Most lenders have made it simple for applicants to obtain a business loan. You may now request for an unsecured commercial loan on the web pages of these lending institutions easily from your own home or workplace. These sites are incredibly user-friendly, with online guidelines that show borrowers how to obtain a business loan. These web pages also provide different features and deals on their financing options. A borrower can review the many business loan alternatives accessible online and select the one that best meets his or her business demands.

There Is Little Documentation Required 

The documentation required to apply for an unsecured business loan is modest. A borrower must primarily supply scanned copies of his identification evidence, address proof, SPDC, and a cancelled cheque. However, certain loan providers may additionally need confirmation of business existence, bank account statements, and appropriate financial documentation to assess your company’s age.

Rapid Disbursement Of Funds

The online mode for application simplifies the processing of any commercial loan application. If the applicant fits all of the qualifying requirements established by the business lending institution, the application form may be completed considerably quicker and the bank loan may be sanctioned immediately.

Loans With A Shorter-Term And More Flexible Repayment Plans

Unsecured business loans are often granted as short-term credit by lending institutions. An unsecured loan usually has a repayment period of 12 to 60 months. This allows company owners to take a break from paying long-term Instalments for repayment. The short loan term also makes it easier for debtors to maintain a positive cash flow situation. Many company loan providers now give customizable loan repayment alternatives to make the repayment processes considerably easier.

Can A Business Loan Be Linked To The Holiday Season?

The solution is straightforward. Small and medium-sized firms are the most vulnerable to market volatility, and this effect is amplified when the business owner has invested all of their savings into the venture. This might result in the owner’s capital being gradually depleted. Unsecured loans and can help by giving cash assistance, and even if the firm experiences a downturn, the businessman is not deprived of his or her assets.

Another aspect of the holiday season is the increase in demand for goods and services. During the holiday season, the rate of buying and selling continues at an all-time peak. . Because of the increased demand, company owners make every effort to expand output. This rise in output will undoubtedly necessitate some more money for increasing the stock of gear and the necessary machinery. A company loan is a viable option in this situation. There is no requirement for the entrepreneur to contribute from his/her personal pocket when the facility of an unsecured loan is available.

The Advantages Of Obtaining A Small Business Loan During The Holiday Season

Small businesses might profit greatly from obtaining a loan since it helps promote sales, particularly during the holiday season. The most obvious benefit of obtaining a small company loan is increased sales. These loans give the much-needed financial assistance that SMEs require to increase their festival outreach.

Similarly, there are several other advantages to obtaining a small company loan over the holiday season, including:

1. Small company loans enable SMEs to develop their product lines while also pursuing tax breaks and other perks.
2. Aside from tax advantages, SMEs can gain financially from referral schemes offered by many lenders during festivals.
3. Small firm loans made accessible throughout the holiday season enable owners to purchase more equipment and machinery, as well as grow their business assets and production.
4. If guaranteeing assets is difficult, owners can obtain unsecured loans that do not require security and achieve their short-term aims throughout the holiday season.
5. SME mortgages also have a quick and easy application process that requires no security and little documentation.

To Summarise

When applying for an unsecured loan, a firm owner should consider aspects including- interest rates, prepayment penalties, and loan offer documentation. Be careful to consider all of the advantages and drawbacks of a business loan and determine whether what the loan provider is providing you is in line with your business goals. If you really are optimistic about the success of your firm and believe you can handle the increased interest rates, then asking for an unsecured commercial loan stands to reason.

FlexiLoans have low-interest rates and may be obtained quickly online with minimum paperwork. Apply immediately and enjoy unlimited withdrawals based on your business size with no further part-payment or prepayment fees.

The post How can an Unsecured Business Loan, SME Loan, Help You Grow Your Small Business This Holiday Season? appeared first on FlexiLoans Finance, Business Loan Blogs, Tips & Guide.

• Business expansion
• Purchasing equipment
• Maintaining inventory
• Starting a new venture
• Meeting working capital requirements

Getting a small business loan today is much easier than ever before. There are a number of lenders in the market who are competing to garner the attention of borrowers. Therefore, before narrowing down the options it is necessary for the applicants to learn everything about small business financing. Thus to help you gain an insight this comprehensive SME Business Loan Guide will reveal the all essential information.

HERE IS A STEP-WISE GUIDE TO SMALL BUSINESS LOAN IN INDIA

Before applying for a loan, you need to figure out the exact reason. The reason for which you need to avail finances will drive your choice of loan type. So, take time to ascertain the need for financing. Here are some categories of business loan types:

LINE OF CREDIT

The line of credit financing works like a credit card for your small business. Under this credit facility, the financier issues a pool of fund for your business. Depending on the seasonal requirements of your business you can withdraw the funds. And interest would only be levied on the money withdrawn. Soon after you pay back the borrowed amount along with its interest you are again entitled to use those funds. Thus, the line of credit business loan is a viable choice for businesses that have fluctuating capital requirements.

MERCHANT CASH ADVANCE

If part of your business revenue is generated from credit or debit card payments, then a merchant cash advance is the best funding option for your business needs. Based upon the monthly sales volume the lender purchases a part of your credit card sales. Repayments under this funding are made by extracting a proportion of your revenue obtained through credit card sales. Many SMEs find procuring merchant cash advance an easy funding option as under this the repayments can be made on a daily basis without any hassle of hefty monthly EMIs.

WORKING CAPITAL LOANS

A working capital loan intends to meet the everyday demands of your business. These are short term loans that cover operational needs. These loans can be used for financing offline as well as online businesses. The working capital loans are appropriate solutions for the ventures that face the short term cash flow issues.

So, this was a quick roundup about the types of business loan offered. Moreover, since the number of females entering the entrepreneurial market is taking a steep surge. We at FlexiLoans support women entrepreneurs as well. We believe that all kind of business owners should get a fair chance to achieve their dreams. Therefore, in order to help the industrious ladies to meet their capital demands, we offer collateral-free business loans for women. Furthermore, the lending landscape discussed below will serve as a guide on small business loans for women entrepreneurs.

WHAT SHOULD YOU CONSIDER BEFORE APPLYING FOR A BUSINESS LOAN?

Before heading to apply for a small business loan in India you need to consider the following factors. Based on these your lender would evaluate you and your business performance:

CREDIT SCORE

A good personal and business credit score plays an important role in acquiring a business loan. However, a bad credit score will not necessarily rule you out but it can impact the terms of your loan. It can affect the interest rates levied. While contrary to this a good creditworthiness will help you fetch loan faster and sooner.

CASH FLOW

Cash flow is one of the focal indicators of your business success. It provides the lender information about your financial capacity of paying back the loan. The stronger is the business’s income and cash flow are the more easily you are likely to obtain the funding.

BUSINESS PLAN

Most of the lenders look for an effective business plan to disburse the finances. Your business must present a clear picture about every aspect and should be sufficiently viable to secure funding.

BUSINESS TENURE

Getting a business loan is much easier with longer tenure. Based on your experience in business the lender evaluates the consistency of your business. Thus, longer is your track record easier would be the financing.

STANDARD DOCUMENTS NEEDED TO APPLY FOR A SMALL BUSINESS LOAN IN INDIA

Applying for a business loan will require you to submit specific information about you and your business. The list of documents that would be required to validate the information about you and your business include:

• Identity proof
• Residential address proof
• PAN cards of the business and other operating personnel
• Certificate of Incorporation or the Partnership Deed
• Financial statements of at least the last three years, including Profit & Loss Accounts, Audited Balance Sheets, and Reports.
• Personal & Business Tax Returns for the last 3 years.
• Last 6 months bank account statement (business and self)

THE TAKEAWAY

As a small business owner in India you have ample of options to secure funding, but just don’t go astray. Refer to this small business loan guide to understand what type of loans are right to serve your business purpose well, and what do you need to apply for them. Remember, each kind of loan can provide you cash but only the right choice could take your business to the next level.

HOW TO APPLY FOR A SMALL-BUSINESS LOAN

If you are an Indian resident and own a legitimate business which has been in operation for 6 months or more, then you can apply online for small business in as little as a few minutes.

• Fill an online application.
• Upload documents.
• Receive a lending decision within 48 hours.
• Get funds credited to your nominated bank account on the following business day.

It’s that simple!

Hope, this guide has accorded you with all of the information needed to acquire the right funding for your small-business venture.

Then, why wait for more log onto www.flexiloans.com click to apply and get funded!

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It has been found that 80% of SME loan applications are rejected by banks and other institutional channels due to lack of collateral, poor financial history or nil credit rating. Due to this, SMEs which have a good business record never used a credit card or own assets in the name of an older family member find it very difficult to access loans without collateral. Hence, in order to service such SMEs, FlexiLoans.com offers timely and adequate small business loans to fund their working capital requirement, seasonal inventory cash flow, upfront invoice discounting and equipment purchasing.

FlexiLoans.com gives an internal rating to the SMEs based on their cash flow documents assess their repayment capacity. Thereafter, if all the documentation is in place, the loan is approved within 48 hours. FlexiLoans.com has also tied up with various e-commerce players such as Flipkart and ShopClues to access data, reviews, and ratings on small and medium sized business owners who can be potential borrowers. It has even partnered with a finance company, banks, and point-of-sale machine manufacturing companies to reach out to the maximum number of SMEs who need small business loans.

So far, none of the borrowers have defaulted on FlexiLoans.com platform, barring a few delayed payments. FlexiLoans.com plans to expand its reach from 70 to 200 cities in the next 18 months and more than double loan disbursals to around Rs500 crores.

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