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Published on Nov 22, 2022Updated on Jan 16, 2023
As a small business owner, you wear many hats at once. From marketing to financing, you are in charge of all operations. For constant growth, you have to be on a constant lookout for expansion opportunities. The best way to go ahead with such business development is to take up a small business loan. With proper funds in hand, you can manage capital requirements for manufacturing, transportation, advertisements, customer service, etc., without having to exhaust your personal savings.
However, one major concern for small business owners is that they have to often give up a part of their business or resource as collateral while borrowing funds. According to the loan value, collateral can range from equipment to real estate. This can turn out to be a matter of insecurity, since this means that you can lose your valuable assets in the case of default in the loan repayment structure.
This article helps you out with this problem. Let us see how you can get a small business loan without collateral.
The concept of a collateral arises when a lending institution gives an individual a loan but asks for a guarantee of repayment in exchange for it. Usually, collateral is considered a security and is given back once the entire loan amount has been paid back with interest. If the borrower is unable to make his/her financial ends meet and fails to repay the loan, the lending body has the right to auction off the collateral in the market for monetary compensation.
Yet, several lending firms now offer collateral-free business loans to make it easier for business owners to grow. This step will eventually lead to an increase in startups and employment opportunities in the country, thus bringing about economic growth.
Must Read: Top 6 Things You Should Know Before Refinancing a Business Loan
To apply for a business loan for your venture, follow these steps:
There are numerous government-introduced startup loan schemes that you must know. Some of them are:
A business loan without collateral is sanctioned only to eligible applicants. There are several parameters against which the lending institution checks your eligibility:
You can check your eligibility through Fullerton’s online business loan eligibility calculator.
The features of a small business loan as offered by an NBFC are typically as follows:
You can apply for the small business loan, submit all required documents, and get the approval online. Moreover, you can get the funds transferred to your account shortly after approval, which means that you do not have to visit any branch to get your small business loan financing.
Small business loans without collateral are great financial options for business owners. If you are someone looking to take your business to the next level, you should consider Fullerton India’s loans. With its business loan options for budding entrepreneurs, you can achieve your business aspirations with no hiccups. Check out the documents required and calculate the monthly instalments to be paid through our online EMI calculator so that you can plan ahead.
To make the most of your business goals, a small business loan is the best step ahead. See your business reach new heights with supportive financial backing.
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