Once you have kick-started you own small business venture, you would eventually be on the look out for additional capital to manage your cash flows and cover your day-to-day operational costs. One of the most popular ways in which all enterprises, big or small, procures adequate funding to fulfill their business needs is by taking out a working capital loan. While there are numerous banks that offer secured business loans of up to 30 lakhs, it is always easier and more feasible for small enterprises to procure unsecured business loans that are offered by only a few finance companies such as Ziploan.
Why unsecured business loans?
A typical unsecured business loan does not require you to offer any collateral in order to avail a specific amount of credit. Since small businesses are not often stable enough to put up an asset such as inventory, equipment or property to support their loan request, unsecured business loans are the most attractive alternative for them. Also, since you are not typically providing a tangible guarantee of repaying your loan within the stipulated time, the lending company cannot seize your personal or business assets in the event of a default on your part. Such loans are typically designed to offer financial support to companies that are either in their start-up phase or already existing as a stable enterprise. These loans can be used for a variety of business-related purposes, from operational support and expansion to covering working capital requirements and even purchasing inventory and machinery.
What are the benefits of availing an unsecured business loan?
Unsecured business loans such as those offered by Ziploan have the following advantages for your small business enterprise:
- Minimal requirement of documents and background checks, which implies that you can avail unsecured business loans regardless of your credit history. You may even build your credit score with the fund for easier credit procurement in the future.
- No fees or penalty is charged in case you choose to pre-close your business loan before the end of the stipulated tenure.
- Lightening fast approvals and processing to ensure that you swiftly obtain adequate financial assistance and are able to deal with an emergency crisis well-in-time.
- A wide selection of flexible terms to ensure that you get a customized product tailor-made to your convenience, preferences, and specific business requirements.
- Quick disbursement of the loan amount via wire transfer to your bank within a period of three business days from the date of approval so that your operations do not stop for the want of funds.
Reliable lending companies such as Ziploan not only offer some of the most competitive interest rates in the market but also help you in further expanding your business and raking in higher revenues in the long run. Working capital loans for small businesses can really help out small businesses in many scenarios.