What Are The Benefits of a Business Loan

Benefits of Business Loan

Why business loans make sense?

Business, as we know it today, has evolved from just being a corner shop run by a family to sophisticated pillars of society run by a body of investors and owners sharing risks and profits, contributing to the world economy, and in return, garnering trust and credibility. Business loans are best offered at Buddy Loan, know more benefits about your financing.

 And just like any sector, to grow and expand, a business needs a business module, and a business module can only be set in motion with financing. This is where business loans come in handy.

What are business loans, and how do they help?

A business loan is a type of loan optimized and intended for business plans. And as it is with all kinds of loans, a business loan lender creates debt, which is then repaid by the borrower with added interest agreed upon by both parties before the loan is sanctioned. Be it to buy machinery, or to expand your business; business loans cater to the needs of a businessman.

There are many types of business loans available depending on a borrower’s requirements and eligibility, some of which are listed below.

1. Bank loans.
2. Mezzanine Loans or Mezzanine financing.
3. Asset-based loan Invoice based loans.
4. Small business financing (Also called startup financing)

Benefits of business loans.

Unlike “bad credit” loans like personal loans, the pros of applying for a business loan outweigh the cons. Let us have a look at some benefits a business loan applicant is entitled to.

1. Convenient and accessible: Applying for a business loan today is no mountain climb is you have a good credit history. There are hundreds of options available in the markets today.
2. Multiple options: We now know a business loan application is not limited by the choices available to him/her. The borrower can opt for the option best suited for his/her business needs.
3. Flexible repayment options: Business loans are designed in a way so as not to hamper the current business module of the borrower. 
4. Hassle-free business loan application process: These loans are so easily disbursed, a borrower need not run around in circles and can apply for a business loan online unlike the old traditional ways.
5. Instant approval: Business loans are usually disbursed within 24 hours, depending on the amount the borrower has applied for. Even so, a borrower does not have to wait for days to get his/her business loan approved.
6. No collateral required: This, of course, depends on the type of loan a borrower has applied for. Unlike mezzanine loans or asset-based financing, most business loans do not require collateral or mortgage. 

And to top it off, business loans are easily accessible through Buddy Loan. With low-interest rates and flexible payment options, Buddy Loan makes sure your business grows to great heights.

Documentation:

Buddy Loan has a varied range of investors, depending on the borrower’s requirements. Although documentation may vary from lender to lender, it spans in and around the following list.

1. Identity proof (Aadhar Card, Driving License/PAN card/Passport/Voter ID)
2. Address proof (Electricity bill/Telephone bill/Passport/Trade license/Lease agreement/Sales Tax certificate)
3. Income proof (Bank statements ranging from 3 months to two years, depending on the lender’s requirements)
4. Financial documents (ITR for the past two years along with balance sheets, Income and profit & loss a/c)
5. Business Ownership proof (For existing business owners only. This is not applicable for startup financing seekers)

If you are looking for a business loan, look no further into Buddy Loan.

Happy financing!