Find the Right Business Loan Offer Online
You need a business loan to start and grow your business. It becomes difficult when you do not get the right loan at the right time. In this regard, it is important to determine your loan type as well as your funding source beforehand. Banks offer business loans online to enterprises in order to help them meet their short and long term financial requirements. A business owner needs capital for starting and expanding his / her business as well as for meeting various other related expenditure. Small and medium enterprises can secure business loans online from various sources. However, it is equally important to research and explore the various loan offers in order to get the right loan at competitive rates.
There are five crucial factors they you should take into account while borrowing a business loan:
- Consult several online lenders or loan specialist to know the best loan offers as well as their interest rates.
- Evaluate the total cost of the loan and figure out if there is any hidden fee or surcharge.
- Borrow only the required amount keeping in mind your repayment capacity so that you can pay it back within the specified time in a hassle-free manner.
- Read all the documents properly before signing. Go through the minutest details of everything written in the documents.
- Be careful in dealing with loan offers having limited time-period
In case of any business loan, you have to pay processing fee as well as pre-payment fee. Processing fee needs to be paid at the time of processing a loan application. Pre-payment fee is to be paid in case if you want to close your loan account prematurely by repaying the loan partially or completely before the due date.
Here's an insight into the various types of loans that can help you learn how to find the right business loan offer for your business.
Trade loans can be availed online by traders or businessmen for opening a new business or expanding their existing one. Like professional loans, the amount of trade loans also depend on the loan tenure, repayment capacity and financial standing and age of the applicant. These loans can be availed for a maximum period of 5 years and you can repay these through equated monthly installments. However, banks may sometimes ask an entrepreneur to submit collateral security against the loan in the form of land mortgage and building. You can also furnish collateral in the form of government bonds, national savings certificates, shares and bonds or life insurance policies.
Trade loans are generally provided to firms having status like sole proprietorship, partnerships or private limited companies.
As the name suggests, these loans are provided to self-employed professionals like CA, doctor, interior designer and architects, to just name a few. It is to be mentioned that these loans are unsecured in nature. The loan amount varies depending on the financial soundness, repayment ability, tenure and the age of the applicant. In this type of loan, the interest rate is based on an entrepreneur's profile and his / her financial capacity. You can made the repayment through EMIs. There are few circumstances when there is a requirement for a collateral security. You have to submit various documents for identity and address proof while securing this category of loan.
Short-term loans are taken for meeting short-term working capital requirements and are to be paid within a duration of one year. These loans are provided in order to meet temporary shortage or mismatch in liquidity as well as for meeting diverse business requirements.
You can avail these loans for starting your new business, build your inventory as well as for buying equipment. Besides, these loans are also used as working capital. The tenure of this loan is from one to three years.
Long-term loans are usually applicable for established businesses. These loans are taken with a motive of increasing fixed assets, for business expansion or for the acquisition of new business. The tenure of this loan 3-5 years. You can use this loan as a startup capital or as a long-term working capital depending on your requirement. This loan can also be used for buying land or buildings as well as for undertaking construction works.
If you are finding difficulty in applying for a suitable loan or getting your loan approved, Biz2Credit is there to help you. With its strong online lending network, Biz2Credit can help you in getting numerous lending options that can successfully meet your business requirement. Besides, Biz2Credit also offers free loan consultation so as to find out what type of loan is most apt for you. We are there to guide you throughout the entire loan application process right from filling the particulars to the final approval of the loan. Our specialty lies in arranging business loans for you at affordable rates and that too with great ease.