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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Principles for Leading Your Company through COVID-19 Crisis

Ever since the COVID-19 outbreak in the UAE, the government and other institutions have been fighting to curb its spread. The virus spreads when a healthy person inhales droplets from a person who is infected. It also spreads when you touch surfaces that are contaminated then touch your eyes, mouth, or nose. It is necessary to adhere to the recommended health guidelines like washing your hands or using an alcohol-based sanitizer, maintaining social distance, avoiding crowds, etc. Employers should ensure that the workplace is safe and can accommodate employees without compromising their health. Preventing the Spread of COVID-19 at the Workplace Keeping your workplace COVID-19 free does not have to cost much; maintain hygiene and cleanliness. Ensure that surfaces like tables and desks, keyboards, and telephones are wiped and disinfected regularly. Encourage regular hand washing by workers and customers. Provide sanitizers and hand wash soap at entrances, exits, washrooms, etc. Ensure that sanitizer dispensers never run out. You can also hang informative posters on the importance of washing hands to prevent the spread of the Coronavirus. Promote the use of face masks at all times and practice good respiratory hygiene. Make sure your employees are well aware of Coronavirus Health Insurance. How to Lead Your Company during the Coronavirus Leading a team during the COVID-19 can be tough; there is uncertainty, and employees are constantly worried about their families and health. Here are principles you can use to lead your team during this time of crisis. Preach Hope Your employees will mirror your behavior, so as you talk to them about the present and unclear future, it is necessary to remain optimistic. Be truthful and assure them that the company will withstand the hard times, and things will be back to normal. You need to give them hope, act like a leader. Taking leadership training Dubai lessons teaches you how to handle overwhelming situations in the workplace. Although preaching hope is necessary, avoid giving false assurances as this can break their trust in you and the company. People-Centered Approach You need to be in tune with how the staff feels and thinks during this crisis; watch for changes and respond to any concerns. Employees are going to be worried and anxious about job security and health. Executives who take leadership training in Abu Dhabi classes know how to act even in a crisis. Show genuine concern for your workers; some risk their health to be at the office while others work from home juggling family and workload. Effective Communication Communicating is not enough; you need to ensure that the message is understood and not blown out of context or misinterpreted. Try to maintain personal but professional communication with each member. Be transparent, and keep the employees informed, but don’t bombard them with too much information. Communication is a two-way-street; listen to your team and receive feedback without judgment. When employees are free to issue their concerns and opinions, they feel appreciated and valued which leads to job satisfaction and improved productivity. Collaboration Don’t pretend to know everything; nobody expects you to. This is the ideal time to rely on your resources, employees, and all team members. Create taskforces, sub-taskforces, and explain each person’s role; this makes them feel that they are contributing positively to the workplace during this crisis. Collaboration fosters cohesion and builds trust within the team. When people work together they can come up with better solutions to problems. It also helps employees to adapt to the new norm. Change is inevitable, and organizations need to adapt accordingly. Establish a Common Vision Focus on setting out a simple, shared vision; this fosters a sense of purpose. As the crisis escalates, a shared vision reminds the team to work on what is needed at every stage and to focus on important issues. It also helps employees to focus on the organization’s goals without getting distracted by the outside world. It steers employees in the right direction. Having a clear vision ensures that every member is on the same page. A good vision is not enough; you need to communicate correctly to let everyone know their responsibilities and expectations. Be Present It’s crucial to be present at the workplace to interact and support your team. It is also necessary to do the same if you have a virtual team. Most organizations have all or some of their employees work from home. It is necessary to schedule regular meetings through video conferencing. This makes remote working employees feel seen and included in everyday routine and decision-making processes. You don’t have to be physically present to lead your team. If you lead managers, you need to keep a tab of their daily routine and continue with your coaching conversation. The COVID-19 crisis has changed the workplace; some people work from home while others continue with their normal routines while observing health recommendations. It can be overwhelming to lead a team during a crisis; some workers are confused while others are worried and frustrated. As a leader, you need to develop strategies to keep your team focused during these times. Read also: 5 Ways Technology Will Change the Hospitality Industry Post Covid-19 Pandemic

Six Pointers to Starting a Successful Business

So you've decided to bite the bullet and start up your very own business. If it's the first time you've ever dared to create your own venture, you're probably intimidated. But if your passion is deep and your willingness to work is significant, a lot can happen. But first, you must address some first steps to starting a successful business. Here are our tips and pointers to doing just that: 6 Pointers to Starting a Successful Business: 1. Create a Plan and Implement It: The most essential step to founding a new business is to simply start. Research and create a plan that details the sequence of steps you need to take to create a business from scratch, approximately how long it will take to implement each step and your budget for each stage. Sticking to a blueprint will help you focus on your long and short-term business goals and keep you from getting distracted. Take advantage of the many free and paid resources across the Internet that help you structure and create a business plan. Once you have a plan you've researched inside-out, follow it! 2. Learn to Delegate: You may be tempted -- particularly if you are on a shoestring budget -- to establish your business on your own. But this is not the best path to business success. With the budget that you have, consider enlisting the help of a virtual assistant, a mentor or volunteers that help you get out of the day-to-day minutiae of your business. Doing this will enable you to focus on the bigger decisions and strategies that help you automate and build systems that keep the business running on a day-to-day basis. Don't skimp on just hiring anyone though, really invest time in finding the best employees for the position you are advertising. Employees who are intent on helping you with the best of themselves will be the lifeblood of your enterprise. 3. Investigate Your Audience: If you're able to think of five independent profiles of customers off the top of your head who'd be interested in your product or service, then you're on to something. Investing time and thought into finding out crucial information about your target audience is incredibly important to your business. Ask yourself the following questions: What target group would buy your products? Why would they value your product enough to buy it? When you are able to deeply identify your target audience, you're more likely to be able to figure out avenues of how to reach them. Knowing your target audience is what will ultimately guide you in the development of your product or service as well as your marketing. Make it a point to occasionally ask your customers what they think about your market, your product/service, and other such valuable information. If they would support website localization or foreign language subtitling for your onsite videos, for example, you should know about that. Doing this will help you prepare a positive, seamless experience for them from the moment they first hear of you to when they buy your product or service, and beyond. 4. Work Out And Stick To Your Rates: Many business owners make the mistake of charging what they think the market would be willing to pay. But instead, your baseline should be to charge the minimum, or more than the minimum, of what you need to earn to keep your company afloat. Set realistic goals of how much it will cost you to stay in business. Once you have a final figure in your head, set a rate or price that honors that figure while enabling you to make a profit. Try to set a price on the value of your service or product, rather than just cover a simple margin more than what it costs to provide or create the service or product. 5. Tap Into Your Passion: Beyond the nuts and bolts of the plan behind putting your business together, there's the human aspect --- your drive and passion for wanting to make it happen. The truth is that most successful entrepreneurs will often do whatever it takes to make their business successful. Starting a successful business is rarely easy -- it requires long hours, occasional failures, setbacks and disappointments that will make it difficult for you to continue. When you have the drive and determination to overcome these, you are that much more likely to find the success you deserve. 6. Roll Up Your Sleeves and Get Busy: Don't wait until you've got all your eggs in the basket to start putting your business together. Waiting for the right moment means it may never arrive. If you have an idea that is compelling and have undertaken the research and necessary planning to get it off the ground, go for it. But be prepared to learn some tough lessons while adjusting your plan along the way. Start now and commence your journey towards launching a business. Remember, even if you fail, you'll be that much more experienced when you revamp your ideas and strategy and start afresh. Read Also: 4 Business Leadership Skills For Business Success Why Should Retailers Use Pricing Tools For Their Businesses 5 Intelligent Sources To Boost Business Strategies All Over The World 5 Most Common Challenges Faced Bye Commerce Businesses Today

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

Benefits of NBFC Business Loans

What is an Unsecured Small Business Loan?