Startups to established businesses face situations where they need money to boost their business growth. However, many business owners do not know the best loan. In this blog, we will guide you to understand different types of business loans, whether short-term or long-term and how you can fulfill your specific needs.
Different types of instant business loans
1. Term Loan: This is the most common type of quick business loan in Guwahati. It offers a lump sum of what you need and repays with a fixed monthly installment over a fixed period. Term loans are versatile and used for various purposes. These loans come in various repayment terms, ranging from 12 months to 5 years or more. These terms are categorized into two parts. In short-term loans, this loan tenure is 12 months; in long-term loans, the loan tenure is extended up to 5 years.
2. Line of Credit: A line of credit works as a business credit card. It offers a pre-approved borrowing limit that a business owner uses as needed and repays with interest. This can be used in international trade for both imports and exports. It provides import security from fraudulent activities. For exporters, this ensures payment from the buyer before they ship goods. This is a good option for ongoing operational expenses or covering seasonal fluctuations.
3. Equipment Loan: This instant business loan in Gurgaon is specially designed to purchase equipment for business operations. This saves money on taxes and provides lower interest rates.
4. Merchant Cash Advance (MCA): This is not technically an online business loan in Mumbai. It is a cash advance method. When you apply for this, a merchant service company reviews your credit card sales and the amount you are requesting. Based on this information, they will analyze the maximum amount they can comfortably give. But it is important to know that, they come with higher fees than traditional loans.
5. Small Business Administration (SBA) Loans: This type of business loan in Amritsar is provided by a government agency. This is the best option for small businesses because qualifying is easy for this type of loan and offers lower interest rates.
6. Loans under Govt. Schemes: The Indian government actively supports various sectors by launching loan schemes. These schemes cater to individuals, MSMEs (Micro, Small, and Medium Enterprises), women entrepreneurs, and businesses engaged in trading, services, and manufacturing.
Who Provides These Loans?
a. Private and Public Sector Banks
b. Non-Banking Financial Companies (NBFCs)
c. Regional Rural Banks (RRBs)
d. Micro Finance Institutions (MFIs)
e. Small Finance Banks (SFBs)
Benefits of Government Loan Schemes:
a. Lower interest rates
b. Flexible repayment terms
c. Subsidies
7. Gold Loan: Gold loans are secured loans offered by banks and financial institutions using your gold as collateral. This type of instant business loan is known for quicker processing times, requires minimal documentation, and is easily accessible.
Before selecting any type of short-term business loan, do your research. Discover loan options from traditional banks, online lenders, credit unions, and alternative financing companies. Compare repayment terms, interest rates, and eligibility requirements to find the lender that best suits your needs. Choose Loan in Tap to help you in your financial crisis. We give you personalized suggestions for your financial problem and offer loans quickly. Visit our site or contact us!
Also Read: How To Consolidate Debt With a Personal Loan?