• our email id
  • +91-9310655500
  • Home
  • About
  • Services
    • Businees Loan
    • Car Loan
    • Credit Card
    • Home Loan
    • Insurance
    • Loan Against Property
    • Mutual Funds
    • Personal Loan
  • Tools
    • EMI Calculator
  • Contact
  • Blog
  • Become A Business Associate

How to get a Business Start-Up Loan?

Home / How to get a Business Start-Up Loan?
31 Dec

How to get a Business Start-Up Loan?

  • Finheal
  • Business Loan
  • Tags: credit report, line of credit, start-up loans
  • no comments

business-startup-loan

Individuals who desire to start their own businesses but do not have the requisite funds to begin operations can move toward banks to meet their financial needs. Startup loans are an immense way to obtain funds that can be repaid to the lender at a later date. In this article, we will take a look at two of the most admired types of startup loans, viz. Line of Credit and Equipment Financing.

Line of Credit

A business startup loans in the form of a line of credit works in an alike manner with a credit card. However, the card is joined to the individual’s business in its place of their personal credit. One of the most outstanding reimbursements of a small business line of credit is that customers will have no compulsion to pay interest on the borrowed sum for the first nine to 15 months, thereby making it easier to cover expenses whilst getting their business to a good start.

For instance, if the line of credit availed is Rs. 10, 00,000, and the customer draws Rs. 2, 00,000 to cover starting expenses. In this case, the customer will only have to pay back the Rs. 2, 00,000 along with the applicable interest rate. The interest will only apply to the Rs. 2, 00,000 and not the entire sum of Rs. 10, 00,000.

Customers who look for a line of credit for their new business are necessary to have a credit score above 700. Moreover, approval from the bank can take approximately a month after the customer has furnished a thorough credit report. Though, customers need not vow any asset as security for this kind of loan.

Equipment Financing

In this type of loan for start-ups, the equipment that is bought when initial the business is pledged as collateral, thus enabling the lender to accuse a relatively low rate of interest with slightly higher risk. The customer is expected to pay back the sum used to buy the equipment as revenues are generated from their business. Similar to a line of credit, applicants are expected to have a high credit score (680+), and the documents required to avail equipment financing include a vendor quote, a detailed credit report, and a declaration viewing the manner in which the customer intends to make use of the equipment. The main advantage of equipment financing is that the reduction of the equipment can be used by the customer as a tax benefit for many years.

Share this Post

  •   
← Previous Article Next Article→

About the Author

Finheal

Related Articles

  • Is Business Loan Eligibility Still Relevant?
    Is Business Loan Eligibility Still Relevant? February 1, 2017
  • Eliminate Your Fears and Doubts about Business Loan Rates
    Eliminate Your Fears and Doubts about Business Loan Rates January 24, 2017
  • How to Get a Business Loan for Your establish
    How to Get a Business Loan for Your establish January 18, 2017
  • Business Loans can obtain your business to new heights
    Business Loans can obtain your business to new heights December 23, 2016

Leave a Reply Cancel Reply

Latest Post

  • What is Home Loan Balance Transfer Process? | Finheal.com
  • What is considered a Good Credit Score to Buy a House?
  • Top 5 Reasons to have High Credit Score?
  • What is CIBIL Score?
  • Mutual Fund on Google has reached the highest levels in five years

Categories

Archives

Persnal Loans in Cities

  • Personal Loan in Faridabad
  • Personal Loan Gurgaon
  • Personal Loan in Ghaziabad
  • Personal Loan Noida
  • Personal Loan in Delhi

Home Loans in Cities

  • Home Loan in Faridabad
  • Home Loan Gurgaon
  • Home Loan in Ghaziabad
  • Home Loan Noida
  • Home Loan in Delhi

Business Loans in Cities

  • Business Loan in Faridabad
  • Business Loan Gurgaon
  • Business Loan in Ghaziabad
  • Business Loan Noida
  • Business Loan in Delhi

Car Loans in Cities

  • Car Loan in Faridabad
  • Car Loan Gurgaon
  • Car Loan in Ghaziabad
  • Car Loan Noida
  • Car Loan in Delhi

LAP in Cities

  • Loan Against Property in Faridabad
  • Loan Against Property in Gurgaon
  • Loan Against Property in Ghaziabad
  • Loan Against Property in Noida
  • Loan Against Property in Delhi

Mutual Fund in Cities

  • Mutual Fund in Faridabad
  • Mutual Fund in Gurgaon
  • Mutual Fund in Ghaziabad
  • Mutual Fund in Noida
  • Mutual Fund in Delhi

Credit Card in Cities

  • Credit Card in Faridabad
  • Credit Card in Gurgaon
  • Credit Card in Ghaziabad
  • Credit Card in Noida
  • Credit Card in Delhi
  • Footer Logo
  •   B3, 1st Floor, Rama Park
          Uttam Nagar, Near Dwarka Mor
          Metro Pillar No.764
          New Delhi-110059
  •   +91-9310655500
  • our email id
©2017 Finheal . All rights reserved. | Become Business Associate | Privacy Policy   |   Term & Condition   | Sitemap  | Contact | Career
Scroll