“It takes money to make money”
This is a very common adage that we often hear in the world of business. It is imperative for a businessman to maintain adequate cash reserves to ensure that the business is running efficiently. Nevertheless, this is often not possible for an SME to have enough cash flow to meet all its expenses.
An SME owner requires funds not just to meet daily expenses but also to survive the competition from the established players. Consequently, he may not be able to generate enough funds. So, he may look forward to avail credit service in terms of a Loan For Traders. With the additional funds, he can hire experienced talent, adopt new and upgraded technology, and maintain larger stocks and inventory. A Loan For Traders Without Security offers all these and various advantages other advantages as well.
Challenge In Availing Loan For Small Traders
There are different small business lending options available in the market. The business owners approach the lenders when they are in need of a Small Business Loan. However, most of these lenders get their application rejected because they are unable to hypothecate security against the loan. Not every business owner has collateral to pledge. New and small business owners often start their operations from rented premises. So, they do not have significant assets to hypothecate. This makes their loan application for a secured business loan for traders denied. Noteworthy, the application can also be denied if the asset hypothecated is not valuable enough for the funding.
The relief for traders is that there are loan lenders who offer an unsecured business loan in India. This type of loans is a prominent option for small business owners to formal funding and that too at customer-friendly terms and conditions. There are an array of loan products available for the SMEs.
The digital revolution has completely transformed the financial industry. Many Fintech companies have also come into existence that offers loans for small traders. The important point to mention here is that the Fintech companies also offer unsecured loans that can be availed without pledging any security. Small entrepreneurs can avail loans from them to help their business to expand to new locations or buy inventory. They can also use funds to increase working capital and fuel their operations to get maximum output.
How To Apply For A Small Business Loan For Traders
Generally, Fintech companies are the NBFCs (Non-Banking Financial Companies) that uses technology to offer better financial solutions to their customer. A loan for traders is a highly sought after loan product by SMEs. Small enterprises belonging to different industries can avail from the business loan without security Fintech lenders.
The exact loan eligibility criteria differ for every lender. But generally, every lender requires the business to be in operations for at least the last 2 years. Additionally, it should also have a turnover of more than 5 lakhs and the ITR filed in the previous year should be more than 2.5 lakhs. You should have an idea of how to be Deal With Tax Preparation In Small Business along with the loan eligibility criterias.
Before applying for a loan for traders, the business owner should have a precise idea of its loan requirements. This will help in choosing the right loan type and the repayment tenure. Additionally, it will also increase the chances of getting the loan application approved as this will show his financial responsibility to the lender.
After knowing the requirement, the business owner can apply for an SME loan. He can visit the lender’s website and fill the loan application form in just 10 minutes. He can also upload the documents required for a loan for traders without security online without visiting the lender’s office. However, anyone applying for a business loan should know about the various costs related to it. Such as interest rate and processing fee.
The loan application is entirely digital and once it is submitted, the lender will process it. He will evaluate the eligibility of the small business and borrower. Their approval process is very fast and they disburse loans in just a few days. They will notify the borrower about their decision on the application through an SMS or call.
If the application for a loan for small traders is approved, the loan amount will be disbursed in the next 3 working days. The amount will be credited directly in the borrower’s account. The borrower can choose the repayment tenure that suits his pockets among the different options available.