India, a land of opportunities and innovation, is powered by aspiring businessmen and women, who desire to bring a difference to their customers through their products or service offerings. This enthusiastic attitude is evidently reflected in an ongoing popular television reality show in India, which is hosting budding first-generation entrepreneurs pitching their product/service proposition for seeking capital support to meet the business demands from the empaneled star-investors, in return of equity of their already established company. For any business owner, expansion of the business operations remains a constant need as part of their business progression. One of the primary roadblocks which comes in the way of business expansion, especially when the owner can clearly see the growth and product demand in the market, be it in the offline or online ecosystem, is the quick source of funds to capitalize the demands and fulfill the same simultaneously.
What about owners who do not wish to forego any equity of their company for a paltry sum of capital? Well, the solution to such a requirement is a Business Loan. “A Business Loan is a credit offering designed to ensure funding of capital to business owners without the need of pledging a collateral with the lender. The loan query can be submitted online, and the process of the application and disbursement is completely digital and paperless”, explains Abhay Bhutada, Managing Director, Poonawalla Fincorp Ltd.
Now, let’s understand the five reasons why a business owner would require a Business Loan: –
1) Managing Cash Flow: It is pivotal for small and medium business owners to ensure regular management of cash flow. Any hinderance or obstacle faced in day-to-day cash management can disrupt the business strategy and business operations with stakeholders associated with the business. A Business Loan thus can help mitigate such issues of cash-flow disruption.
2) Seasonal Business: With the colors of religious diversity in India, many small and medium consumer facing businesses are dependent on meeting the heavy demands of customers for seasonal needs. To ensure that business is robust during such a phase, a business loan acts as handy source of funds for smooth business operations.
3) Cash Discounts from Wholesaler: Every business owner feels delighted to receive discounts for their purchase from a wholesaler and the same for the wholesaler, who is paid upfront for his/her goods by the buyer. For that to happen, enough source of funds (cash) available in hand, enables a business owner to ask for cash discount and enjoy the profits earned from the discounts.
4) Expanding Operation: Growth is not only measured in profits earned by the business. The other aspect of measurement is Business Expansion. To be able to meets the growing demands, expanding operations with agility remains a vital business requirement. Business Loan helps in giving the convenience and nimbleness in addressing the expansion strategy.
5) Consolidating high-debt loans: One of the marquee features of an unsecured Business Loan for a business owner is the ability to use the loan amount for consolidating any multiple ongoing debts and repaying the same, and in some cases in doing so, able to get back their tangible collaterals back from multiple lenders.
“Poonawalla Fincorp Limited, NBFC registered with the RBI, provides collateral-free digital Business Loans to small and medium enterprises. Additionally, the Zero Pre-Payment charges associated with these Business Loans provided by Poonawalla Fincorp help in maximizing the savings.. Other product features include the Extended Loan Tenure which goes up to 36 months and the maximum loan amount up to Rs 50 Lakhs. Business Loan customers can also avail a free EMI calculator and an option to check their CIBIL credit score for free with Poonawalla Fincorp Limited”, concludes Mr. Bhutada