Capital access is key to growth, and sustainability. If you are a company that’s launching their first product or even already scaling up ops, then it’s important to know what kinds of business loans you may or may not be eligible for.

When your business is ready to take flight, we will help you find your wings. In that case, let us look at what lies under the wings of your business through our various business loan options!

Importance of Business Loans 

Most entrepreneurs and business owners value business loans more than just collateral. The money they give you enables you to carry out various aspects of a business.

- Expansion: Financing can help finance opening new locations or increasing your production capacity.

- Product Launches: The funds can be used to allocate to research and development or to advertising new products or services. 

- Debt Refinancing: This will make repayment easier, and you must pay only one single repayment to the lender rather than several and this will also lessen the amount of interest that you spend on the lender.   

But if you want to know the type of business loans one can, easily find the type of business loans that are best for your business.

Types of Business Loans 

1. Term Loans

Business loans come in all shapes and sizes, from term loans, which are the likely number one kind of business loan to shorter-term loans referred to as line of credit fees. You don’t have to pay anything, but you get paid over one to five years.   

If you need more time to pay back while relying on your business to be involved in long-term projects or investments, then these are perfect.

- Pros: It is suitable for large purchases, has a predictable repayment schedule. 

- Cons: Interest rates vary but may require collateral.

2. Working Capital Loans

Working capital loans are meant to finance short term operation cost rather than long term investment. Which will allow businesses to manage cash flow fluctuations, inventory buying as well as paying employees. 

- Pros: Ability to access funds fast and as many times as needed, and how the money can be used.

- Cons: Short term repayment terms, possibly higher interest rates. 

3. SBA Loans

Government-backed loans are called Small Business Administration (SBA) loans and offer these businesses favourable terms. The loans that have a lower interest rate and a longer repayment period need a great debt credit history and extensive documentation.

- Pros: Bigger loans; lower interest rates; longer repayment terms. 

- Cons: Long application process; great restriction in eligibility criteria.

4. Business Lines of Credit 

With a business line of credit, you are granted a certain limit of money to which you can withdraw whenever you need. The ability to make it flexible to deal with cash flow or unexpected expenses makes it the ideal tool. 

- Pros: Borrow all you need, interest only in what you use; flexible borrowing. 

- Cons: Variable interest rates, collateral needed. 

5. Invoice Financing

When a business borrows money with the idea of invoice financing, it uses what they have (unbilled) as collateral. In a situation, this kind of loan can help you improve cash flow as they help get you quick funds based on unpaid invoices. 

- Pros: No collateral involved, but no time for waiting. 

- Cons: High fees, customer-dependent payment. 

Choosing the Right Loan 

Business loans vary greatly, primarily based on your business size, sector, financial condition and exactly what you need. The team of our recognized financial consultants in Mumbai at SIIA Advisory is always there to assist you by understanding your needs and customize a loan solution that suits your objectives.

How to Apply for a Business Loan at SIIA Advisory 

1. Consultation: For any financing needs you visit our website or contact us directly. 

2. Assessment: After that, we will evaluate what you want, propose which is related to your requirements, and choose the ideal loan option.

3. Documentation: The necessary documents required to be submitted are financials, KYC etc. 

4. Approval Process: Our priority is fast approvals, so you don’t have to waste time growing your business. 

5. Fund Disbursement: When approved, you will be given your money in days, and you can begin to implement your plans.

Eligibility Criteria 

To qualify for a business loan at SIIA Advisory, ensure that you meet the following criteria:

• Your business must be registered in India.
• A positive credit history is essential.
• A good CIBIL score is required.
• Applicants must be Indian citizens or residents aged between 23 and 58.
• Regular income sources must be demonstrated.   

Conclusion 

One of the reasons to understand the different types of business loans is because you get to know the best features of them. We at SIIA Advisory are into helping businesses secure the right kind of financing at the most suitable terms in relation to what they have done. 

If you’re looking to scale up, launch new products, ups and day-to-day operations we’re with you every step of the way.   

Would you like to talk to us and help you move your dreams forward?