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

What Does Business Law State about Monitoring Employees?

Occasionally, we come across many individuals that are conflicted about the role monitoring applications have to play in the day to day office routines and activities. The most common question asked deals with the boundaries and limits that are “bendable” with the installment of monitoring applications. And the answer is simple; monitoring applications and software programs are legal and frequently advised to be installed in any firm or company. Here is why. Legal but… Monitoring or spy applications are legal in any court of law across the world. However, there are some regulations that need to be upheld by the employers’ side before installing monitoring software around the company premises. These guidelines include: Informing Employees Beforehand When it comes to employee monitoring applications, every court of law strictly states that the employees should be clearly notified about being monitored. The best way to accomplish this is via policies and guidelines that should be always kept on display within office premises. These guidelines should clearly explain every element of the employee monitoring intervention put forth by the company. Moreover, even when the firm decides to take on new employees, they should adjust a clause in the contract which makes it mandatory for every person being hired to sign a nondisclosure stating that they are alright with being monitored on company-related matters. Only Limited to Company Owned Gadgets Monitoring software programs tend to give employers an unwarranted power over the employees. And to protect the employee's interests, legal guidelines regarding monitoring apps clearly state that the spying should be only limited to company-owned gadgets. This means that every information coming in and going out through the company-owned gadgets are company property. The guidelines placed around the office premises should also clearly pinpoint this clause so that it poses as a reminder at all times. Furthermore, it is also recommended that the employers get their employees to sign a nondisclosure agreement that clearly states that all information on the company owned gadgets is company property. This means it can be used by the company in court if need be as well. Using Reliable Technological Sources When another’s a source of income and image in the business world is on the line, it is always best to be careful and use reliable technological sources and software programs rather than the usual cheap ones. The expensive yet well-reputed ones can be easily programmed and altered according to the specific needs of the company, hence always used for easy access and usage. Balancing is key Putting so many restrictions and highlighting many stingy clauses regarding monitoring applications like TheOneSpy mobile spy software around the office can definitely scare an employee and hence hinder their overall productivity. This is primarily due to the lack of rapport that should be there between the employee and employer to help increase profits as employee motivation grows. Therefore, it is always recommended by experts to use a system that is similar to a token economy where the employees are given some leeway and flexibility in some areas while at the same time restricted in some too. For example, allowing them access to specific social media sites during a few designated hours of the day. Never Resort to Open Slander It is never healthy to insult or accuse an employee openly among their peers. And with monitoring applications installed, there will be many times that the system may show you red flags which in reality are nothing but some mishap with the coding of the monitoring application itself. Therefore, rather than losing your cool and openly slandering a perfectly loyal employee, it is always best to take them aside or discreetly conduct a further investigation either with their knowledge of it or without it. This is because an employee can otherwise sue you for slandering their image followed by wrongful termination which would prove bad for your company’s image. The law about monitoring applications is specifically made to protect both the employees as well as the employers in case of any mishap or misunderstanding between the two parties. While it may look like the employers have all the power with monitoring applications installed, but in reality, analysis has shown that monitoring applications have been found to be more useful to employees. For example, if an employee faces discrimination at the hands of another employee or employer, they can use the backup made by monitoring applications to highlight the wrongful act in court.

The Best Methods To Build Strong Customer Relationships

Despite the plethora of advertising resources available in the digital marketplace, one key issue still has not been resolved - how do you build strong customer relationships? As a direct link between you and your customers, an email address will allow publishers to build a personal connection with an audience. Below are further marketing tips that can be used to develop a stronger client relationship using email marketing. The Best Methods To Build Strong Customer Relationships 1. Move The Social Media Audience To A Direct Channel By Gaining Their Email Address: To strengthen your target audience relationship, you should reconsider how you view Facebook. You cannot connect with a target audience on a platform where all algorithm tweaks reduce its reach and take you further from your potential customers. Instead of playing "cat and mouse" using Facebook's algorithms, it is recommended that you utilize the social platform as a channel for acquisition. Making use of social media platforms CTA features will help you support your email newsletters to the target audience and lead the social audience to your company's email list. From this point, you will be able to engage with them without any interference from the social platform. 2. Using Email Capture Apps To Connect With The Site Visitors In An Inbox: When visitors arrive on your website via an organic search or from social media, they are likely to leave the site as soon as they arrive. By utilizing onsite capture resources to collect their email addresses before they leave, you will be able to set up a direct and long-term form of communication with the audience. Not only will email subscribers build up more lifetime website visits than visitors from Facebook, but they also tend to view more site pages during their session. To maximize the email conversions, it is recommended that you utilize active capture widgets with a contextual newsletter offer. This is likely to convert passing visitors to the website into lifetime subscribers. In this way, you will be increasing the likelihood of engaging users in the long-term and nurturing these subscribers with new content. 3. Building Strong Reading Habits With The Audience Via Newsletters: In the traditional text publishing world, the typical delivery of publications builds reading styles with their target customers. The newsletter via email is the option most similar to that traditional form of publication and habit-forming print media. By sending a constant street of relevant content to the audience's inbox, you will engage the audience continuously; thereby, demonstrating the value of paying for your website's content. You can deepen this engagement through cross-promotion and encouragement of the audience to subscribe to additional newsletters. The quality of newsletters is why the New York Times found that people are more likely to pay for a subscription if they first subscribed to their newsletter; therefore, the email newsletter is the ideal resource for building relationships necessary in the digital publishing environment. Before online transactions and exchanges became the norm, brands were responsible for fostering physical and in some cases emotional connections with their clientele. This resulted in a strong and loyal brand audience, repeat purchases, and other immeasurable value for the business. In today's society, the majority of brands will opt for social media and social marketing to engage with consumers and substitute human interaction. Understanding that humans require relationships in their personal lives and when purchasing items, businesses acknowledge the need to build relationships with consumers, form user engagement, and drive more beneficial sales. While some companies engage with their consumers well using online measures, not all brands are as fortunate. So, how can we stand above our rivals when trying to engage with a target audience? There are several ways in which a smaller company can drive more sales by building strong online consumer relationships. 4. Surveying The Consumers And Gain Their Opinions: Providing your consumer with exactly what they want is potentially the best method to make sales, increase trust in the company, and gain repeat customers. It is the ideal situation and is a building strategy that can help a company get its way with almost any customer. The question remains, however, how do you discover what a consumer's needs are and how do you meet them? Simple, find out what they want by sending them surveys. Before marketing became digital, practical market research was performed via traditional questionnaires or surveys. The original question of how much you agree with a statement would find out if the person strongly agrees, strongly disagreed, or was somewhere in the middle. Regardless of the standard of error metrics that tend to bore the average person, this technique can provide companies with good insight into their consumer market. Customer feedback and surveys can now be conducted using email, via social media platforms, or on different websites. One of the survey platforms available allowing companies to send targeted surveys to consumers through social media and emails is SurveyMonkey. Companies can also gain insight from consumers using Qualaroo as they provide information as soon as the consumer visits the website. 5. Using Email To Communicate: Forming an email list is potentially one of the most significant methods a business can remain in contact with its consumers, build trust, and make sales - unless you are a spammer. If all emails you send are "sale-sy", then you are engaging incorrectly and will more than likely be considered spam. Emails should provide valuable information for the customer to share and once you have provided content to address their needs, you can build rapport and foster the digital relationship to be successful! They can also act as promotions later with the help of a Houston search engine marketing firm. By creating an aesthetically pleasing and informing sales copy to go along with your email, it can make a great impact! Real-Time Video Chat For Consumer Support Real-time video chat is considered one of the hotter topics with businesses that are looking to build relationships with online customers. In late 2017, Amazon implemented the "Mayday Button" - a new feature on the Kindle Fire to allow a user to receive video communication with a client support agent. Never before had this type of online support been available and the user is now able to speak with a representative in an innovative manner. Today, Amazon notes that consumers can use video chat in under 15 seconds and this is much better than waiting on the telephone for a new customer agent to take your call. Read Also: Not All Customers Are Always Right How To Write And Design An Article That Attracts New Customers To Your Business 5 Steps On How To Market Your Business Using Social Media

The Need to Settle End of Tenancy Issues Before Leaving

Small businesses usually rent a small office space given the number of employees who need to work in the same place. If you decided to rent a small office in a popular commercial establishment, you could sign a lease for about a year. Once the contract is over, you can decide to continue it or not. After a year, if your business has already grown drastically, and you intend to hire more employees to join you, it does not make sense to stay in the same place. You need to find a bigger office where you can successfully conduct all your operations. Before you leave the current office, you need to deal with the end of tenancy issues. You don't want to have problems with the owner of the space and not get your deposit back. Read the contract: You need to go through the agreement again to determine what you need to do as your tenancy is about to end. You might have to inform the landlord a month or so in advance that you don't intend to continue your lease. There might also be other stipulations you need to be familiar with before you decide to pursue the next steps. Deal with repair issues: A part of the contract is to keep the place in good condition. Some contracts might have clauses about damage due to wear and tear, which is perfectly fine. However, there might be other severe damage that you need to repair before you leave. Otherwise, the landlord could charge the amount to your deposit, and you won’t get it back in full. Clean the office: If you intend to leave soon, you need to start looking for a new place at least three months in advance. You will then have enough time to ask your employees to pack their stuff and move to the new office. If they will be busy packing their things, you can’t expect them to deal with general cleaning too. Besides, they are also doing their regular job while moving. You need professional cleaners like the ones at www.twinkleclean.co to do the job. They will make sure that the place will look as good as new. When the landlord checks the site, it will feel like no one rented and used it. If you feel satisfied with the services provided by the cleaning company you choose, you can partner with them again when you move to your new office. Pay any outstanding bills: you won't leave, you need to settle all your bills. You might still have packing them to pay. Tell your employees to do the same if they borrowed something from nearby establishments. You don’t want to start in a new office elsewhere with issues still unresolved in your old office. Once you finish doing all these things, you will be ready for a fresh start. Keep in mind everything that you do when you leave the old office since you might go through the same process again in the future when your new lease expires. Read Also: Necessary Spaces To Include In Building Your Office Choosing Open Office Space Vs Cubicle Office Space

Benefits of NBFC Business Loans

What is an Unsecured Small Business Loan?

Advantages of Small Business Loans

No dilution in ownership :

Taxation Benefits :

No Collateral required :

Lower Interest Rates :

No stress on working capital :

Flexibility in Repayment :

How to Boost Traffic to your Small Business

8 Tried and Tested Secrets of a Productive Home Office

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.

Leave a Reply

Popular

Technologies For Creating A Startup Idea

How to Download Facebook Videos on Android?

7 Rules of Effective Ecommerce Web Design

The 10 WordPress Plugins Every Sucessful Blogger Uses

Follow Us

Recent

Fast Freight Solutions: Why Expedited Shipping Is A Game-Changer

The Importance of Packaging Design in Small Business Success

The Credit Score Reset: How It Shapes Your Financial Future

Early Signs Of Oral Cancer: What You Need To Know?

Related

What Does Business Law State about Monitoring Employees?

The Best Methods To Build Strong Customer Relationships

The Need to Settle End of Tenancy Issues Before Leaving

Benefits of NBFC Business Loans

What is an Unsecured Small Business Loan?

Advantages of Small Business Loans

No dilution in ownership :

Taxation Benefits :

No Collateral required :

Lower Interest Rates :

No stress on working capital :

Flexibility in Repayment :

Share this Article

How to Boost Traffic to your Small Business

8 Tried and Tested Secrets of a Productive Home Office

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.

Leave a Reply

Popular

Follow Us

Recent

Related