Short Term Unsecured Business Loans
Businesses need funds to grow and manage their working capital expenses. However, most small businesses face a shortage of funds available to manage their working capital requirements, which is essentially running the day to day business. While in the earlier days businesses depended on friends and family but they soon realised that it is not the right way as it not just spoils the relationships but also does not solve the business needs per se. Then some businesses switched to local money lenders, which although provided quick funds but asked for astronomically high-interest rates and any delay could prove to be fatal for the businesses.
Which is where the businesses looked at the traditional lenders for business loans. While the traditional lenders provided short term business loans, they asked for collaterals against which they can offer the short term business loan. However, as most small businesses run on rented or leased premise providing collateral became an impossible demand and also the traditional lenders took a long time to process such a short term business loan, which made these business loans of less importance to the small businesses as they needed funds for immediate needs.
This is where the modern lenders stepped in as they started offering the unsecured business loans which did not require the small businesses to provide any collaterals. Rather, they were evaluated for the creditworthiness on the basis on their business transactions and the short term business loans thus were more closely linked to the business.
The fintech enablers like LoansJagat provide a quick and easy platform where the small business can fill their requirements and LoansJagat processes these requirements to get the quotes from over 40 Banks and NBFCs. The small business can then compare the offers from these multiple lenders based on criteria like interest rates, processing free, tenure, amount and other charges and fee. A small business can then choose the best lender that offers the best short term business loan to suit their needs. LoansJagat also provides a dedicated Loan Officer to help the business complete the documentation and other formalities as required by the specific lenders.
All this makes short term business loans the best bet for small businesses to manage their working capital needs. Here are some other advantages of these unsecured business loans:
As the name suggests, the unsecured business loan does not require any collateral like residential or commercial properties and thus any business which is running a healthy revenue can apply for the same.
The secured loans require long paperwork to establish the ownership of collaterals and also to evaluate their market value. Unsecured Business Loans, on the other hand, depend only on business performance and thus requires minimal paperwork to establish the creditworthiness.
Minimal Documentation also means that most formalities in such a loan could be completely online and thus such unsecured short term business loan can be availed within just a few days without multiple branch visits etc, as in the case of the secured loans.
Easier Repayment Options:
The modern Banks and NBFCs who offer the unsecured business loans also offer several easy repayment options. Some lenders, for example, offer short term business loan products that are integrated with the business transactions and hence the business do not need to plan separately for paying the EMIs as the loan gets paid on its own by being closely integrated with the business transactions. Other flexible repayment options often include monthly, fortnightly or other flexible repayment schedules.
The short term business loans are also flexible in nature and may solve various business needs. For instance, a hotel might go for a short term business loan to run their expenses during the lean business phase and a restaurant might use the short term business loan to revamp the menu or promote themselves on the food delivery apps for a special offer. Similarly, a retail shop owner might need access to short term business loans to order goods in bulk with the distributors and companies to get extra margins. A short term business loan thus solves various needs which may be for a few days, months or a year.
Thus, a short term business loan is a boon for small businesses and LoansJagat makes it convenient for small businesses to not just apply but also compare the best loan from over 40 Banks and NBFCs and all this with the help of online processing and a dedicated loan office to help with the unsecured business loan from application to disbursal. Get access to short term business loan now with LoansJagat.