Benefits of NBFC Business Loans

Published on: 07 September 2018 Last Updated on: 22 July 2024

Being a small-business owner, you have been putting your whole-hearted efforts to make your business venture a success. You have been working long hours, traveling for client meetings to different cities, staying away from home for days on stretch and also investing all your personal savings and assets to take your business to new heights. Now that you have put your business on the path to growth, it suddenly dawns on you that you have not been able to pay adequate attention to your financials. Now when there is a significant opportunity in front of you in the form of a brilliant idea, which will change the future course of your business, you find that you do not have necessary funds to put that into practice. You feel anguished and frustrated, but that is not going to serve any purpose. So rather than ruing your ill-luck, its better you start looking at other options that you must explore, to meet your financial requirements. One of the most obvious options is availing an Unsecured Small Business Loan.

What is an Unsecured Small Business Loan?

Business Loans that are available to small business owners for their desired purpose without any requirement of collateral are called Unsecured Small Business Loans. These loans are extended by all financial institutions in India, private sector as well as public sector. You are free to utilize the loan amount for any purpose you may deem suitable including the purchase of machinery, upgradation of infrastructure, renovation of office premises etc. There are two types of unsecured business loans in the market NBFC business loans and Bank business loans. The repayment of these loans is to be made in monthly EMIs.

Advantages of Small Business Loans

Small business loans offer a flexible source of funding for you to meet your urgent financial requirements. There are various advantages provided by small business loans such as: –

No dilution in ownership :

When you take a small business loan from a financial institution, you need not provide any collateral and are free to utilize the money in any way you want for your business purpose. The lender does not have anything to do with the way you have spent the money, as long as you repay your EMIs on time. This ensures that the ownership of business stays with you and is not diluted. This is a better option compared to other sources as venture capital or personal borrowing, where you must give up a part of your ownership of your business in lieu of money.

Taxation Benefits :

Small business loans are to be repaid in monthly installments, which comprise principal component and interest component. The interest that you pay on loan is allowed as an expense, and you can claim tax benefits against the same. This, in turn, reduces your tax burden, and the loan in effect costs less in practicality. No other source of funding offers this option.

No Collateral required :

If you do not have any collateral to be hypothecated with the financial institution, then unsecured business loans are your only option. This is an ideal situation for new businesses or start-ups who have a great idea but do not have any collateral to be mortgaged. If required by the lender, you can get a guarantor on board.

Lower Interest Rates :

Unsecured small business loans have a more moderate rate of interest as compared to various other sources of finance such as credit cards or private money lenders. Lower interest rates mean lower EMIs which translate into a lesser burden on your finances. In some cases, the government also offers subsidies on unsecured business loans to help small business owners have easy access to credit at lower interest rates.

No stress on working capital :

When you are able to avail an unsecured business loan, you get spare money at your disposal, which can help you in getting better deals from your suppliers and vendors. Moreover, this ensures that you need not withdraw money from your working capital and thus you can meet your daily expenses conveniently. Also, as the EMIs are to be paid on a monthly basis only, you do not have to put pressure on your cash cycle by withdrawing huge sums together.

Flexibility in Repayment :

some NBFC business loans come with the option for EMI holiday or flexible repayment options, where you only need to pay interest on the loan as your EMI for a specified period, in the beginning, this way your EMI payments, in the beginning, is reduced and you get time to manage your financial position. The principal amount for this mortarium period is adjusted over the remaining period of the loan.

Unsecured small business loans offer a lot of benefits for you. But you must conduct proper research and analysis before you take a final decision regarding the loan.

Read Also :

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

How to Write and Design an Article that Attracts to Your Business

For some people not introduced into content marketing can cost them visualize how to write an article for a corporate blog or a personal blog, you can achieve persuade and attract new customers for a business. The truth is that we can do before you start to analyze some keys do have to pay attention to two important preconceptions: 1- Such articles are not only written but also designed the visual part will be crucial to a potential new client you can do go through the whole cycle/sales funnel. 2- If we pay close attention to these practices we will be well aligned with the latest trends in digital marketing: - Google has increasingly given more and more important to the content after the last update to its search algorithm, you can review it in the article: "The most important previous notions for search engine optimization" - You'll get more engagement with the new batch of digital consumers, "What is a prosumer? Why is it important to be your business thrive? Our mission for these articles is that your potential customer goes through all this funnel since it realizes it has a need to generate a sale (it is very interesting to see what before was considered as marketing has changed now). Read More: How To Ensure You Have The Perfect English To Enhance Your Blog DESIGNING AND WRITING AN ARTICLE THAT ATTRACT NEW CUSTOMERS YOUR BUSINESS The keys are: 1- Locate the subject carefully finding the meeting point between what solves your product or service and looking at your potential customer’s internet: here's an essential task because you can find totally ineffective situations: - Write about a topic related to your product that no one searches the network - Write about something that people look but it costs relate to your product. If the link does not look natural, users will not make this leap for you 2- layout very well to the article: Article should be attractive at first glance and easy to navigate it. For this I recommend the following: - Insert images and videos to be - Short paragraphs, indents and bold to introduce the user to scan it easier 3- Take time to find a memorable title: this I know it's difficult but try to comply with all this: to generate interest, short, with a clear message and that goes in line with what is sought in the network and thus solves your product or service. 4- eye with the first part of the article: we all know that your final intention is to attract customers but if you're going to live very simply be a publicity article and more users will input. Focus on the user's need which is why visiting your text, if you do not you will be disappointed and will never trust you. Once resolved there's your opportunity to present the part that interests you. 5- Put dedication in search engine positioning of publication (SEO): Belief me when I say that the best thing that can happen is that your article out the first Google when users seek to solve a particular issue. That is an open tap into your website. To do this wisely use keywords, the URL is friendly, uses tags and get some relevant links pointing to your post. 6- Do not distract the user !: try to be careful not to introduce links to other websites, if you put references, photos or videos that everything is within your website. 7- well the end of the article with a call to action: When you have provided the information needed by the user searches for a way to call for action to be recorded in your database or give a sales page. It is more effective if you use some incentive like a gift (ebook, coupons ..) or a discount for new customers. Once you have built this article only have to promote it to see the impact on the user and correctly measure if you can connect with potential customers optimally. Read More: How To Write An Effective Resume That Get Noticed? How To Write An Effective Dissertation

5 Steps To Launching Your Own Small Business

Commencing a business of your own is a dream for many in such a high-paced environment where competition is always on the rise. However, it is not as overwhelming as it sounds. With the right set of knowledge and planning, one can easily learn how to start your own small business. While you get started on the journey, there are certain things that you need to keep in mind. This article will walk you through the 5 important steps that help you build a brand right from scratch. So, make sure you scroll till the end and discover the unknown business tips. 5 Steps To Follow When Starting A Small Business Before actually starting to build a business, you have to get a detailed analysis of the market, your competitors, and the things that have been trending in this particular niche. If you conduct a thorough study on this, there’s absolutely nothing that can stop you from becoming an entrepreneur. 1. Research All of Your Variables This might seem obvious, but it's really not. Most people understand they need to research how to deliver the services or goods they intend to provide and how to advertise to the right customer base. It goes further, though. The kind of industry you would do best in and the business model that best suits your area and target marketplace are also variables to consider. You might know what you can do, generally, from your skill set, but you need to get specific about what your area needs and where it is underserved if you want to count on bringing in customers quickly. Look at the cost of setting up a company, leasing compared to buying operational space, costs for local advertising, and recommendations for staffing while you are at it. The more knowledge you have going in, the better your chances of success once you get things going. Running a company is all about building consistent processes for regular tasks, and you need research to understand which processes will be productive, too. 2. Assess Your Financial Reach Within any industry, there are players that work as individual professionals or owner-operators, and there are large corporations providing service at volume. Frequently, the latter are the biggest customers for the former. The scope of your company at startup is defined by the resources you can bring to bear. Understanding how much financing you can get with your available assets and capital will help you understand how to set up your company for day-one operation by putting realistic limits on things like equipment, utilities, payroll and the number of employees you can start with. You can make the most of this reach by getting the best small business loan rates you are qualified for, and that takes even more research to discover. 3. Choose a Business Model Once you understand what you can do with your skills, what size company you can afford to start, and where the demand is, the next step is to pick a model of operation. The model is different from the business. For example, you might want to start a restaurant. What kind? Fine dining, carryout, and mobile food service, all have different operations with different processes needed to be successful. Matching your model to your ability to reach customers and meet their needs is just as important as finding raw demand for a product or service. With a variety of options available, it might be a little confusing for you. So sit back, relax, and think about what kind of business will yield you the desired result. 4. Write a Killer Business Plan Writing your business plan is pretty much the last step in the preparation phase before you actually start launching the company. It serves as a roadmap to your goals as well as an important document for lenders to consider when you apply for financing. A well-written plan should spell out enough about your operation to let your key personnel make autonomous decisions in their spheres of influence. That means your managers should not need to consult you when setting up their departments. In solo operations, it means that you should not need to do extra research outside of consulting your plan unless something unforeseen happens. Your plan should describe the major operations, layout marketing tactics to reach the initial audience with demand and to keep growing from there, identify the equipment you'll need, and otherwise cover everything that goes into actually running the company. That makes it a lot easier to put the pieces together. 5. Put It All Into Motion The first step after finishing your plan is usually financing because that gives you the financial reach to start operating. There are just a few cases where that is not the case. Solo operations can sometimes bootstrap basic services to get a little income going by working out of the house or a client's facilities. Otherwise, it's a matter of lining up the money, then buying the equipment and hiring any staff you need. Last comes marketing and launch. It is always a better idea to keep a dedicated portion of your income aside to fund your business, irrespective of its size. Businesses are full of ups and downs, and once you have set foot, there is no backing off. As a result, you have saved a significant amount of your finances to back up your persistent losses. Upon completion of these steps, you might want to allocate a part of your economic resource to bring the necessary equipment for your business. This will streamline your operations and will ensure that your business operates seamlessly. Key Takeaways Starting your own business takes not only a great deal of money but also time and effort. However, it can also be extremely rewarding when done in the right way. Make sure to follow the above steps that will guide you throughout your business-setup process. For detailed insight, you can always consult a licensed professional for business advice. Get started today! Read Also: Essential Investments Small Business Owners Should Make For Long-Term Success Resolutions To Help The Small Business Owners To Avoid Being Bankrupt How You Can Invest In Your Small Business

Role of Promotional items in branding

Whether you have a small business or a multinational corporation, promotional giveaways can be the most suitable option. The benefits of promotional giveaways cannot be ignored not only because they are versatile, but also because they are quite profitable. Who wouldn’t want a quality giveaway, like a pen, t-shirt, water bottle, mug or other branded advertising products? When using promotional giveaways for your business, you will create a personal touch with customers, improve their awareness and knowledge, as well as make them loyal at the same time. With this personal touch : With this personal touch, your business will increase its brand recognition, market reputation as well as establish itself as a major player in the niche. In this way, you’ll always remain a step ahead of competitors and have a shiny position in the market. Customers also find it easier to recognize the name, objectives, and logo of your company. With this form of advertising, customers will not only know the name of your brand and memorize it for a long. In fact, this type of marketing technique is quite popular and can improve ROI. People often become : People often become disinterested when hearing a similar radio plug or seeing similar notices for organizations in their group. While these standard showcasing approaches do prove to be useful, special giveaways give an edge and an essence of something other than what's expected for customers. A rehashed introduction is additionally basic for advertising to be solid and valuable. In the event that a man is utilizing a written work utensil from your organization, this guarantees your organization is in the back of their brain. There are additionally numerous focal points to marked attire, notwithstanding like pens, tote sacks, or brandishing merchandise. Promotional items : Promotional items can make incredible presents for anybody! Regardless of whether your business isn't in the run of the mill "occasion blessing" class, an all-around coordinated blessing can influence a client to consider how your item or administrations could be valuable as a present for somebody they know. You can likewise make an environment of generosity with individual endowments that demonstrate that you think about your clients. A branded mug : A marked mug with the treat inside offers incredible a minute ago blessing alleviation to worried customers. Indeed, even easily overlooked details like a parcel of mints or a pressure alleviation ball can help shoppers to feel that you are contemplating them and their prosperity, along these lines expanding the merry sentiments of altruism amongst you and your clients. Also, special items are kept for about a large portion of a year, so that is a long time of promoting just from the nearness of a little, economical thing! You can contact It’s All Custom to get something extraordinary in order to do branding. For some independent : For some independent company simply beginning, the sticker price for limited time giveaways may seem, by all accounts, to be steep. Contingent upon the items that you put resources into, the cost can be altogether different. The influence of limited-time giveaways can to a great extent exceed any cash snag. The enduring effect of limited-time giveaways makes them an exceptionally profitable venture. The occasions are an incredible time to provide for other people who are in require. Amid the riotous season, it feels great to stop and help another person. Demonstrate to your clients that you give it a second thought and give them an approach to help other people by supporting philanthropy this season! You can give to any Foundation by offering a wide range of pink-marked things. Be considerably more honest by offering naturally amicable items and giving the returns to an untamed life reservation or an eco-accommodating non-benefit. This is an incredible method to connect giving and great deeds with your image, to get the message out about your business, and to help to merit philanthropy. Read Also : How Personal Branding Online Can Help Your Job Search Why Every Business Needs Digital Marketing Building A Brand For Your Small Business

Benefits of NBFC Business Loans

What is an Unsecured Small Business Loan?