A business loan is a savior for entrepreneurs who find themselves strapped for cash while starting a new business or expanding an existing one. While people also opt for a personal loan to finance the expenses of their business, it’s best to take one that’s tailor-made.
A loan for business is especially important for small businesses that don’t have the seed capital or funding to buy or upgrade machinery, meet operation costs, or for other expenses. Plus, most of the reputed loan providers offer unsecured loans, so you need not offer collateral security.
However, you must keep in mind that while numerous small and big lenders offer business loans, you should diligently research before choosing a provider. There could be a huge difference in a lot of essential factors, such as the interest rate, repayment tenure, type of security, etc. So, before you decide to get a business loan from one of these providers, be sure to compare all the details and pick the most feasible option for your business.
Another plus point of taking a business loan is that, if you have all the information, such as identity proof and business statements, then you can easily get the loan disbursed within just a few days. This quick disbursal also ensures that you don’t miss out on current opportunities due to a delay in availing funds.
Typically, disbursing a loan for business doesn’t require a lot of steps, and this is why you can get it within a short span of time. For most lenders, the disbursement flow is as follows:
Loan application submission
All the major providers have an application form that can either be filed online or in person. The application form is the first step towards availing the loan, and it requires you to enter all the basic and business-related details, such as your address, authentication of the business entity, etc.
Document submission stage
Along with the application form, your provider will also ask you to submit documents attesting to the information provided in the form. Right from the business plan to the income flow statement, you’ll have to submit supporting documents for verification.
After you’ve submitted all the information from your end, your provider will then check your eligibility, CIBIL score, etc. Some providers may have their own parameters for checking credentials and eligibility, and this is why it may take a few days to do a thorough check.
Contract and other paperwork
After your documents have been verified and your loan has been approved, the paperwork starts. This is the last stage before loan disbursal. This would typically take a day or two to complete.
After all the verification and paperwork is done, your loan will be disbursed to you within a few days.
If you’re looking to build your empire, a business loan can help you buy the building blocks for it. Just be sure to do your research before opting for a provider and choose the right terms that help you to grow. Tata Capital offers some great business loan options that you could avail. So, get started!