Business loans can offer wings to a new venture, especially in its early stages. Any business, big or small, requires funds to sustain and grow. Financing your business through a loan instead of selling its stake for capital funding may be a wiser option. We loans also offer a host of tax benefits and the flexibility in repayment makes it easier for businesses to sort their finances out. However, many entrepreneurs have several misconceptions about business loans. One such common notion is that business loans are only meant for bigger requirements and it is difficult to get them for smaller amounts. In contrast, smaller amounts, in balance with the businesses’ earnings and cash flow, have a higher chance of approval. For bigger loan amounts, we may ask for additional information and set criteria that may make it difficult to get the loan approval.

Business loan approval also depends on the stage in which the business is. Businesses with proven track records have a higher chance of loan approval when compared to emerging ventures. However, a higher chance is not always a guarantee. New businesses, with better fundamentals, are likely to get approval for their loan, in sync with their business requirement.

The rise in lender options, in addition to the established firm, has also made it easier for budding businesses to get loans. We offer loans at a lesser rate than banks. However, We are willing to take the risk and chances of loan approval are comparatively in the case of a new business.

Another common myth about business loans is that you must have an existing business to avail of the financing options.

You may avail of a business loan for starting a business. We encourage entrepreneurs and offer business loans for new ventures as well. Because we believe in the business prospects and the pitch, may approve business loans.

The business owner’s financing position also plays a key role in the prospects of loan approval. Having said that, it doesn’t imply the borrower must have a clean credit history. Well, having one always helps but it may not be guaranteed. The credit score requirement of the applicant varies depending on the kind of loan they are applying for. For short terms business loans many lenders may take the chance even if the borrower’s credit score is lower than what is considered ideal.

While bigger business loans may require the borrower to pledge collateral, they may not be applicable for all cases. Several small business loans can be availed without any collateral requirements. These include unsecured lines of credit, merchant cash advances and business credit cards, and unsecured business loans among others. In such cases, if the business owner defaults on the loan, they will be held accountable and need to repay the amount from their pockets.

The entire process of getting through with the loan application has become simpler with digitisation. This also allows you to compare the different options available in the market and zero in on the best deal.

Business loans help raise capital for expanding a business and starting a new company. Read on to learn how to get a business loan

Growth is imperative for a business. Without increasing revenue and profit, a business cannot survive in this competitive climate. From innovative solutions to performance marketing, there are many ways to increase revenue. But sizeable capital is required to do all that.

The best way to fund such plans is through a business loan from lending institutions, such as FMI Firm. There are multiple categories of business loans available, each of which is suited for a specific situation.

What is a business loan?

FMI and other non-banking financial companies (NBFCs) offer secure and unsecured business loans. The major goal is to meet the immediate needs of an expanding company. Most financial institutions provide term and flexi loans to meet a company’s commercial needs. Commercial loans are another name for business loans. These loans are available to sole proprietors, privately held companies, partnership firms, self-employed persons, and shopkeepers.
How to get a business loan?

We also provide an online business loan. To apply for a business loan, download the application form and upload the required documents. Once the documents are verified, the sanctioned loan amount reaches the beneficiary’s account within a week.

What are the different types of business loans?

Here are some common types of business loans you can get:

1. Term Loan

A term loan is a common type of business financing. The loan could be secured or unsecured. The amount accessible is determined by the credit history of the company, while the term ranges from 1 to 5 years for unsecured business loans and up to 15 to 20 years for secured company loans. A term loan is mostly used for capital expenditures. The
authorized funds are disbursed in one lump sum by the lender.

Besides giving established institutions access to funds, firm such as FMI also provide small business loans, new business loans, and business loans for women.
2. Start-up Loan

A start-up loan is intended for budding businesses. Due to lack of business experience, applicants for such loans may not have a strong credit history. As a result, the lender factors in the borrower’s personal credit history and the company’s credit record when determining the loan’s application. Turnover data and other factors are also considered when determining the loan amount, term, and interest rate. The company must be set up and running, and the applicant must provide evidence of its existence and licensing.

3. Working Capital Loan

Working capital loans are small business loans used to cover the shortfall in cash needed to run a business. It creates the essential cash flow balance to run a business. This loan can cover a cash shortage during the off-season or to meet consumer needs during busy seasons. Service providers, producers, distributors, merchants, and traders involved in exports and imports commonly avail of working capital loans.

We offer unique business lending programmes for women entrepreneurs to promote women to start small and medium-sized enterprises. A
customizable loan amount, discount on conventional interest rates, and faster application process are advantages of specialized loans for women entrepreneurs.

There are many other types of loans which can help businesses. If you are looking for a business loan, FMI helps business owners efficiently run their business through loans at a low interest rate. You can also take a personal loan for self-employed people and use it to give your business the boost it needs.