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.

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8 Tried and Tested Secrets of a Productive Home Office

Whether you are an entrepreneur or you run your own business from home, or you are simply doing your office work, offices in the home are more than just a simple working space. Not only it gives you the freedom to work with ease, but it’s also a place where your work productivity depends upon. You can also transform your garage into your Productive home office. You can use the garage space for your office creation. If you are in a home and want space to not affect your productivity, here are some of the tips to help you: Different Tips You Can Follow For Creating Productive Home office There are different tips and tricks you can apply for creating your Productive home office. In this article, you will get the complete details of it. Try to follow some key tips that can work well in your favor. Do not make your choices in grey as it can defame your dreams. Do not make things more complicated for yourself. 1. Be A Mouse Find a nook and start working. Be it a corner of your room, or the divided study, find the space that makes you feel comfortable while working. Also, make sure that the place doesn’t amalgamate with noisy rooms. Busy rooms make the worst space to work, so find a distraction-free space where you can focus. 2. Declutter Space Although it's obvious to see extra pens and papers swimming on your desk, they can detract from your work and can hamper your productivity. Let your space think so that you can work peacefully. Allot different space to everything with your working device only on the table. 3. Segregated Log House If you have kids at home who constantly keep you nagging between your work, you surely need an individual workspace. While a study would be fine, kids can invade that too. However, you can construct a small log home to work in peace. You can even go for a log cabin kit if you don’t wish to build a complete house. 4. Green Can Help Make your workspace look appealing by bringing some outdoors into your space. A plant on the desk or floor is the perfect way to add a fresh feel to space. This will also give you a break from the screen when needed and will look pleasing to the eyes. You can add a small cactus or a succulent if you are not a fan of huge planters and pots. 5. Comfort Is Important Don’t create such an environment as you are napping, but you can incorporate something comfortable to relax during breaks. Since it’s hard to be focused by constantly straining to see screens, good and comfortable seating will prevent your fatigue and will increase productivity. Invest in a good office chair or a couch. If you are tired of seating too long, have a standing table in one corner. Things like small cushions, anti-glare screens and more can up your comfort level allowing you to stay focused during work. 6. Lighting Maximize work by incorporating good lighting to boost energy and also to reduce eye strain. If possible, increase natural light and let the fresh air come in. If it's impossible to bring natural light, use bright white bulbs to make the room look brighter. 7. Color Color can make a huge difference to your productivity, so use it smartly. While soft hues can give you soothing effects, yellow hues aim to increase creativity and induce a feeling of relaxation. So choose the colors that suit your personality and bring them into your productive home office. You can also add colors through accent wall painting or can paint the entire space. 8. Scents Also Work The key to staying active all day is a nice smelling room, and that means incorporating scents. You can use peppermint to add freshness and to energize the space. Also, peppermint can help you concentrate on your work. If peppermint is not your smell, use citrus scents to de-stress and to uplift mood. Diffused candles and essential oil diffusers are also a great way to make your scented game strong and your room refreshing. Well, it’s no secret that the office environment plays a major role in your product. However, the above tips can also help you to create a productive home office. Final Take Away Hence, these are some of the factors that you have to take care of while you want to build your own productive home office space that is essential for your business. Try to make things work well in your favor as it is one of the crucial aspects for your business to encounter at your end. Work well in all the aspects that can help you to achieve your business objectives in the right way and in a short span of time. Read Also : 8 Ways You Can Improve Safety In A Workplace Exploring A Full-Time Remote Working Opportunity The Best Pro Tips For Setting Up An Awesome Home Office

How To Sell A Small Business Without A Broker

Once you’re ready to sell your small business, hiring a business broker tops your list. An article from this perfectly defines the role of business brokers that is to act as “intermediaries between buyers and sellers of a business”. They are the equivalent of real estate brokers or agents who sell properties on behalf of property owners. Business brokers manage everything necessary to sell your small business, from planning to marketing to closing the deal. Some even assist during the transition process. Considering such an enormous task, enlisting a broker may seem the easiest and most convenient thing to do. However, their service comes with an outrageous fee, usually around 10% commission from the sale. This is certainly a huge cut from your profits. If you want to retain the full profit from the sale, you can opt to sell your small business sans middlemen. This is an excellent choice especially if you have previous experience selling a business, you know of prospective buyers, or you’re not in a hurry to sell-off. However, when you decide to sell your business on your own, you have to be ready for a tedious legwork. So, how do you go about the sale? Know your reason for selling the small business According to a business broker, the first thing that a buyer would want to know is why a business is being sold. For a business to attract a potential buyer, you need to have a good reason. Some of the common reasons are retirement, sudden changes in personal circumstances, illness or death, boredom, partnership disputes, and burnout. Prospective buyers find these as ‘attractive’ reasons to buy a business. It may be harder to sell a business if you tell the buyer that you’re selling the business due to its sorry financial state, persistent losses, lack of manpower, and changing market conditions and trends. Make your business easily marketable by timing your sale properly. Show positive attributes to make it more marketable such as a strong customer base, increased profitability, consistent good financials, well-defined business processes, and a good contract. Plan your sale Prepare your business at least two years ahead of the sale, especially if you won’t enlist a broker. Have an ample amount of time to improve your client base, business structure, and financial records. This will help improve the value of your business and make it more attractive to buyers. This should also help ease the transition process. Get your business appraised Once you’re ready to sell, you need to decide on the worth of your business. It is best to work with a professional business appraiser to get a proper valuation. Often, business owners become illogical when it comes to evaluating their own business. Some price is too low in an attempt to make it more marketable but end up losing on potential profit. Others price it too high hence making it unattractive to potential buyers. A business appraiser will evaluate your business to determine its worth. He then prepares a detailed explanation to give credibility to the proposed price. Prepare all documents Give time in preparing the design or sales package for your business. This document represents your business in the best possible light to potential buyers. It should include financial, operational and marketing information. If you are not comfortable with your communication skills, you can enlist the help of professional business writers. Financial documents are an important part of the sale process. Gather your books of account, financial statements, and tax returns for the past four years. Review these documents with an accountant. In addition, develop a list of assets that are being sold along with the business. Include other necessary documents such as lease agreements, supplier contracts, and contact lists. Prepare an information packet or operating manual that provides an overview of your business processes. In addition, you want to add photographs of your business, testimonials, case studies, and customer profiles. Highlight accomplishments and milestones to make it more marketable and command better-asking price. Prepare your business on-site Alongside the documentary preparations, you should also make your business site presentable. Check your physical store, production site, warehouse, and other related locations. You might need to have some areas repainted or redeveloped. Check if equipment or machinery needs to be replaced or fixed before the sale. Investing in such developments can help improve the asking price. It might sound cliché but first impressions last. An unkempt and dilapidated business site might turn off a potential buyer. It pays to invest in your physical asset as soon as you decide to sell on your own. Look for a buyer to sell your small business Finding a buyer is difficult, but it becomes doubly challenging if you don’t have a business broker. Unless you have a ready buyer, it may take several months to years before you can find the right buyer. The advantage of hiring a business broker is that they have wide networks and established marketing methods. If you are working solo, you will need to compensate for these services. There are listing sites dedicated to businesses-on-sale. You only need to pay a one-time fee and your business becomes available to potential buyers. You can also tap your networks. Perhaps, a friend or an acquaintance (or someone they know) is planning to buy a business. You can check your local business clubs or chambers. Visit online forums and social networks. Don’t limit your advertising methods. Final Thoughts As you can see, if you sell your small business without a broker is possible. It can even be advantageous if you play an active role in the sales and negotiation process. Quite obviously, business owners are more passionate to sell their business to the right buyers. Of course, you just have to remain rational and avoid getting your emotions to affect your decisions. As a final caution, if you have no experience selling and buying a business, you should consider working with a business broker or someone who has experience in this field. Better yet, you can check with your local chamber of commerce for assistance and counseling. Read Also: How to Boost Traffic to your Small Business Cost Effective Custom Mobile Accessories Packaging for your Small Business How To Empower Your Small Business through Digital Marketing? 4 Simple And Cheap Methods To Attract More Customers For Your Small Business

How to Start, Set Up, and Grow Your Own Massage Business

Becoming a massage therapist is an excellent way to be self-employed, earn a good living, and help others. Before you can start, though, you need to be trained, licensed, and certified. Each state has different requirements. At a minimum, you will need at least 500 hours of education and hands-on training from an accredited program. In many states, you will need more. After you qualify as a massage therapist, you can work for a health practitioner or spa. However, you will earn the highest amount of money and get the most satisfaction from your career if you start your own business. You will need to find a suitable space to lease, conform to county and city government regulations, and legally form your own company. Funding Your Massage Therapy Business There are a number of ways that you could fund your business. Even if you are unable to get a traditional bank loan because you are just starting out or have no business experience, you can often get funding from online lenders. Other choices for funding include angel investors, venture capitalists, factoring (getting invoice advances), crowdfunding, and small business grants. Setting Up Your Massage Therapy Business Here are a few things that you will need to furnish and equip your new space: 1.Basic Equipment. At the very least, you will need to have a massage bed(s) to start your massage therapy business. Find one that suits your budget. Thankfully, there is a wide variety of choices when it comes to stationary or portable equipment. You may also want to consider getting a portable massage chair so that you can offer samples at health stores or other places where you can promote your business. Additionally, consider bringing in some additional equipment to improve the massage experience for your clients like adjustable headrests and neck bolsters. 2. Supplies. Customarily, you will need an adequate stock of organic, hypoallergenic creams, lotions, and massage oils. You will also need towels, sheets, and pillows. 3. Décor You should get a good music player, a nice selection of calming music, and aromatherapy candles. As your business grows, you can improve the décor, but you should offer a few things to provide your clients with a sensory, relaxing experience. Finding Clients For Your Massage Therapy Business 1. Decide on your ideal clients. Although you may be skilled in helping all sorts of people with a wide variety of needs, you do need to develop a focus. Decide if you want to specialize. For instance, you may only want to work with athletes, on one particular type of problem, or specialize in one particular school of therapy. By specializing, you will be able to fine-tune your marketing. Instead of being a generalist, you will be a specialist. For instance, if you specialize in lower back pain or only work with athletes, then you will be the go-to-person for people who have those needs. Don't worry, you will have more than enough clients. Moreover, you will be able to charge a higher fee than massage therapists in your local area who have not specialized. You will attract clients who want to pay you for the quality of your work, and not clients who are looking for bargain-basement prices and discounts. 2. Learn how to advertise. You must learn how to advertise. Create business cards, brochures, and flyers. Put ads in newspapers and magazines. 3. Get good at networking. Go to health clubs, salons, etc. and talk to people who could recommend your services to others. You may also be able to meet people via business and networking events. Although it may not seem so at the time, the most challenging part of your new career may not be the educational or business setup process. It may be finding new clients! Here's the thing, unless you get good at finding new clients, you will be unsuccessful, even if you did really well in school and have set up a well-equipped massage clinic. Your biggest challenge will not be becoming an excellent massage therapist, as that is a fairly structured process. It will be learning how to be a good business person, which is a highly creative, unstructured aspect of your new adventure.

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.

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Related

8 Tried and Tested Secrets of a Productive Home Office

How To Sell A Small Business Without A Broker

How to Start, Set Up, and Grow Your Own Massage Business

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