For any business, the most important goal is undoubtedly growth. After all, it takes a lot of effort to start and run a business, whether it is a small restaurant, clothing shop, milk dairy, cowshed, or bookstore. To ensure the business you have worked so hard for stays competitive and thrives in the future a timely and sufficient cash infusion is important. A business loan helps here.
A business loan is a type of financing option that can help you fulfil both the short and long-term requirements of your business. However, knowing how, why, and when you should apply for a loan is important to make sure this financing option serves the purpose it was borrowed for.
How to apply for a business loan?
Wondering how to get a business loan without leaving your home? IndusInd Bank Business Loans offer a 100% paperless process with quick sanction and instant disbursal. You can enjoy collateral-free funding of up to ₹20 lakh at competitive interest rates with a repayment schedule of 12 to 36 months.
Here is how you can apply:
- Provide your personal information, such as name, number, and email.
- Enter your financial details, such as your bank account number, PAN Card, etc.
- Submit the business loan application form.
- The verification usually happens in real time. If all the details are correct, your business loan application will be sanctioned instantly, after which you will receive the funds.
Why should you apply for a business loan?
Take a look at the different benefits of business loans that explain why you should opt for it:
Your business can grow without financial barriers
Every business aspires to grow. Expansion might mean opening a new store, increasing your product range, or scaling up your production capacity. An online business loan can provide the necessary funds without any lengthy paperwork or collateral.
You can pay in flexible instalments
Most banks offer small business loans with tenures ranging from 12 to 36 months. Based on your repayment capacity, you can customise Equated Monthly Instalment (EMI) payments for long or short repayment periods. As a small business owner, this helps you manage cash flows better and make timely repayments.
Fast disbursal means not missing out on new opportunities
Online business loans are known for quick processing and instant disbursement. This speed is valuable for time-sensitive situations when you need urgent monetary help, and any delay could mean missed opportunities. This may include restocking inventory during peak sales periods, seizing limited-time marketing opportunities, or meeting unexpected expenses to keep your operations running smoothly.
You can build your credit profile with timely repayments
Quick business loans not only offer instant funds but also help you improve your credit score if you make timely repayments. This responsible financial behaviour, in turn, can enhance your future borrowing capabilities. To make sure you do not forget or miss your monthly instalments unintentionally, it is advisable to automate your EMIs.
When should you apply for a business loan?
There can be various situations when you need to borrow funds for your business growth, such as:
Pre-festive stock preparation | Before major local events or festivals, when specific products are in high demand, to buy in bulk and capitalise on sales. |
Cash flow for off-season | During off-season periods when sales dip, to meet operational expenses and employee wages. |
Monsoon-proofing | Ahead of the monsoon season, to invest in infrastructure that protects your goods. This is more crucial for businesses dealing with perishables (e.g., food products) or outdoor operations. |
Infrastructure improvement | For instance, to renovate a cowshed for better livestock care or change the design of a garment store for a better customer experience. |
Equipment or tool purchase | To purchase specific tools or equipment, like sewing machines for your tailors or milking machines for small dairy operations. |
The bottom line
Understanding how, why, and when to apply for a business loan can empower you to enjoy growth without financial constraints.
It makes sense to consider a loan when you are looking to expand, manage cash flow, or seize time-sensitive opportunities. It is also crucial to approach this financing option after carefully evaluating your needs so that you can choose the right time and the right loan product. Remember, calculated financial decisions mean helping your business thrive while keeping all risks in check.