Business loan advisory in Ahmedabad, Gujarat, India

A company's growth is essential. In this competitive environment, a company cannot exist without increasing revenue and profit. There are numerous strategies to boost revenue, ranging from new solutions to performance marketing. However, all of this requires a significant amount of money.

A business loan from the lending organizations is the ideal option to fund such ambitions. In India, there are several types of business loans, each of which is tailored to a certain situation.

A business loan is one that is meant solely for commercial needs. It entails the formation of a debt, which will be repaid with interest, as with all loans. Bank loans, mezzanine finance, asset-based financing, invoice financing, microloans, business cash advances, and cash flow loans are among the several forms of business loans available.

In India, there are various sorts of business loans, each of which is applicable to different types of businesses, has its own set of business loan qualifying criteria, and serves a specific function. To make things easier for you, we've put together a list of the most common forms of business loans and their perks.

Loan types

1.Term Loans

A term loan is a frequent method of obtaining business funding. A secured or unsecured loan is possible. The amount available is determined by the company's credit history, with terms ranging from one to five years for unsecured business loans and up to 15 to 20 years for secured business loans. A term loan is typically used for capital purchases. The lender disburses the authorized amounts in one lump sum.

2. Start-up Loan

A start-up loan is for new firms that are just getting started. Applicants for such loans may not have a solid credit history due to a lack of company experience. As a result, while evaluating the loan application, the lender considers both the borrower's personal credit history and the company's credit history. When determining the loan amount, length, and interest rate, turnover data and other criteria are taken into account. The business must be set up and running, and the applicant must show proof of its existence and license.

3. Working Capital Loan

Working capital loans are small business loans that are used to supplement a company's cash flow. It establishes the crucial cash flow balance required to run a business. This loan can be used to cover cash shortages during off-seasons or to meet customer demands during peak seasons. Working capital loans are frequently used by service providers, producers, distributors, merchants, and traders who deal in exports and imports.

4. MSME & SME loan

A type of loan specially designed to fund operations of any micro, small, or medium-sized enterprises.

5. Machinery loan

A type of loan, which helps enterprises obtain funds for buying new equipment or machinery and enhance productivity.