Benefits of a business loan require capital from time to time for the smooth running of its business. It requires the fund to meet expansion plans, operational expenses, and other expenditures.
A business has many financing alternatives available to meet its capital requirements like business loans, revenue financing, invoice discounting, supply chain financing, and many more.
What are business loans?
A business loan is a debt financing option available to businesses that can borrow from banks or Non-banking financial institutions. Business loans are generally of two types secured and unsecured business loans. The borrower mortgages an asset as security in an unsecured business loan. If there is any default in repayments, the borrower can recover the amount by selling the asset.
Unsecured business loans do not demand any security/collateral. So, it is also known as collateral-free loans. It comprises invoice discounting, working capital loan, and supply chain financing.
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Let’s discuss some uses of the business loans:
A business can buy inventory from the loan amount.
A business can purchase some new equipment with business loans.
A business can add a new product line with the loan amount.
A business can fulfill its expansion strategy with a business loan.
A business can manage its operating expenses with a business loan.
Out of many options, business loans are the most preferred option for businesses because of their many benefits. Let us discuss its benefit in detail:
A businessman enjoys flexibility over the funds arranged against the business loan. The business loan funds set you free to use as per your diligence. Also, you are not bound to act upon anybody’s wishes. So, the benefit of the flexibility of usage of funds makes it attractive for businesses.
Businesses can get access to business loans at nominal interest rates, that’s why it becomes a cheaper option for businesses when compared to other available alternatives.
Our Platform Hylobiz helps you with quick lending options and offers businesses easy and quick financing options at our Hylobiz marketplace. At Hylobiz, you can get easy and quick business loans from our partners such as Bajaj Finserv and Neogrowth credit private limited. Also, avail of bill discounting and SME credit cards to boost the liquidity of your business.
Read more on pre-approved credit cards: https://hylo.biz/hylobiz-how-to-get-pre-approved-credit-cards-for-businesses/
As we know business loans are a collateral-free option, so are available with minimal documentation and fast disbursal. It has also become convenient to apply for business loans, as everything is online and can be applied for within minutes.
No equity dilution
Business loans are also a great source of capital because it does not ask you to dilute your stake in equity/ownership. It only demands you to pay your repayments on time. Due to this, business loans become cheaper alternatives available to a businessman.
In a business loan, you only pay interest on the borrowed amount. Also, it does not demand anything else from you, whereas some other options are available in the market, which takes a chunk/percentage of profit from you alongside fixed repayments.
If you’re taking a business loan and paying it back on time, it can help you in improving your credit score. It also improves your business creditworthiness.
Business loans also boost your business cash flows by supporting you in working capital requirements. It helps in the smooth running of your business operations.
Interest paid on business loans is a tax-deductible expense and helps you save some money by paying fewer taxes. This benefit of tax-deductible is not available in all lending products. So, it makes the business loan a go-to choice for businesses.
The application process for business loans is convenient, easy, and collateral-free. So, it makes it easy for the banks to verify and disburse the loan in the least time.
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Hylobiz is a B2B fintech platform currently available in India, UAE, and Bahrain. It allows you to integrate your existing ERPs such as Tally, Zoho Books, Inventory on its platform at zero cost.
Once you integrate your ERP on Hylobiz, it automatically syncs your invoices from your ERP and expedites your collection process. It allows you to create an invoice of your choice and attach a payment link to them.
You can also share dynamic payment links with your customers and across your social channels. Now, you can also chat with your supplier/ buyer on Hylobiz mobile app.
Hylobiz comes with a plug-and-play solution with a payment gateway integrated into it. It allows your customers to pay you with multiple modes that enhance your collection efficiency.
It helps you with account receivable management and automates your payables, utility payouts, and salaries. We offer you a digital ledger with real-time updates on all your transactions, that also supports automated reconciliation and helps you in better decision making.
Our dashboard feature gives you access to real-time business health and cash flows. It also offers you an expenses tracker with insights into your expenses and allows you 360-degree control over your business.
Hylobiz also offers you hassle-free connected banking services. Currently, Kotak Mahindra Bank and Yes Bank customers can log in to their existing accounts on our platform. Through this feature, you can send or collect any payments in a breeze and improve your business efficiency.
Visit our SME offerings page: https://hylo.biz/offerings-sme/
We are an ISO-certified organization and maintain bank-grade security. All your transactions with us are safe, secure, and encrypted with security at many levels.
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Hylobiz offers you easy and quick financing options.
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