Business Loans can obtain your business to new heights

23 Dec

Business Loans can obtain your business to new heights

Finheal
Business Loan
Tags: capital loans, eligible for this loan, equity loans
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Entrepreneurs and business owners be acquainted with that a business runs on working capital. The capital necessary to take your business to the next level is accessible through a business loan. As a Small and Medium Enterprise (SME) owner in India, you can obtain the benefit of a variety of options through the different types of the business loans in India targeted especially to your particular industry and type of business. Whether your objective is to increase working capital or make bigger your business – help is at hand with a robust business loan to fund your venture with the following types of business loans:

Types of Business Loans in India:

SBA Business Loan: The SBA loan is a loan offered by banks and NBFCs who have been guaranteed by the SBA (Small Business Association). The lenders are typically in the private sector and help finance small businesses. The SBA does not have the funds to finance long term businesses, thus it works with these lenders to help give fixed rate financing for lands and buildings and other equipment that may be requisite.

Working Capital Loans: Working Capital Loans are loans taken in order to finance daily activities in order to keep the business running. These loans are of two types – secured and unsecured working capital loans.

The Secured Working Capital Loans are business loans given by the lender against assets such as equipment, buildings or accounts, as security or collateral. The lender assesses and then decides the sum that can be known against these assets. Sometimes personal assets such as homes or shares may also be required to be kept as collateral.

The Unsecured Working Capital Loans are loans that are given with no any assets or collateral for security. These loans are as such hard to attain as there is no security against these loans.

Commercial Real Estate Loans are loans given on commercial real estates. Commercial real estate’s are properties or real estate’s used only for business purposes such as apartments, office complexes or retail centers. The commercial real estate loans are usually procured for the development, acquisition and construction of these lands or properties. These loans can generally be secured from banks or private sector lenders.

Start-up Loans as the name suggest are loans that are usually availed to establish a new business venture. In order to be eligible for this loan you be supposed to have your business ideas on paper and they should be believable. This loan can be typically procured from banks and private sector lenders and sometimes requires personal assets to be kept as collateral.

Professional loans are loans obtainable to professionals such as dentists or lawyers or doctors or other such professionals who are starting their own practices or firms. These include CPAs also.

Hard Money Equity Loans, Multi-Family Real Estate Loans and Business Acquisition Loans are offered by the banks and other lenders according to the need and qualification of the consumer.

Hard Money Equity Loans are loans that are given on specific real property. These credits are usually given by companies or private investors. They are usually given for projects that are of short duration, such as for a few years or a few months only. Due to this the rate of interest on the loans is higher and they have a high risk factor.

Business Acquisition Loans are loans taken from banks or other private sector lenders or investors in order to acquire a business that already exists. We can call it a takeover or expansion by a businessman who currently owns a running business and is looking to expand it.

Now that we know the various business loans available in India, we can dive deeper into the types of small business loans as well. Business can be broadly categorized into two types, namely small scale and large scale businesses. Similarly, there is a subcategory to, business loans that offer loans to small scale businesses as well and are called small business loans.

Types of Small Business Loans:

Term Loan
Loan against Property
Gold Loan
Loan against Shares and Mutual Funds
Cash Credit Facility
Letter of Credit Facility

Apart from loans, there are other financing options also available to finance the business or for its expansion or other needs that need considerable capital to create or buy.

Types of Business Financing Options

Bootstrapping
Family and Friends
Crowd funding
Equity Financing
Debt Financing
Angel Investors
Leases

Government Programs

These are a few alternate forms of financing that can be opted for in case you are not eligible for business loans or do not wish to apply for business loans from banks or other lenders. We believe it is imperative for a business owner to outline his / her vision and business needs before applying for a particular business loan and we wish you all the very best in your efforts to take your business to new heights as it so rightly deserves.

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Finheal

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