Access to finance for development and expansion has always been difficult for India’s small and medium-sized businesses. Without collateral, it was impossible to obtain an unsecured business funding from financial institutions. Unsurprisingly, many businesses have failed because they were unable to raise funds when needed to expand.
Businesses that took out loans from informal lenders had to pay high interest rates, which ate into their profits. We will explain why unsecured business loans are now more prevalent than ever among small businesses in this blog. Let’s get started.
There is no collateral
An “unsecured” loan, you do not need to put up any collateral to get a loan. This option is useful when a company is just getting started and does not have any tangible assets to use as collateral. Unsecured business funding is now more readily available to new small business owners.
Easy Application Procedure
Most lenders have simplified the process of obtaining a business loan. It is now possible to apply for an unsecured business loan online rather than visiting a bank. The lender’s website is where you can apply for the loan. Furthermore, the websites are relatively easy to use and include online recommendations to assist business owners.
Moreover, these websites deliver information on a wide range of advantages and features associated with various business loan options. An online search for funding a business may help a borrower find the best choice for their company’s needs.
Short Loan Term & Repayment Options
Unsecured business loans are typically granted by lending institutions as a form of short-term financing. An unsecured loan typically has a term of 12 to 60 months. This enables business owners to defer repayment of long-term EMIs.
Borrowers can also keep a satisfactory working capital balance due to the shorter loan term. Several commercial loan providers already provide flexible repayment options.
To ensure your company’s long-term success, you must invest in its expansion. An unsecured business loan allows you to take risks and manage advantage of any growth opportunities that may arise.
Accelerated Business Funding 