The ability to come up with a business idea is only limited by how high you can dream. Skillsets can be developed, and so can a market for a product or service. As long as you are dedicated and are willing to put in the effort to see your venture grow, everything else is manageable – including the capital. Traditionally, getting capital for a new business has always been a challenge. However, with rapid digitization and a strong governmental push, a business loan is easily available today.
Businesses are primarily categorized as product-based or service-based businesses. Here is a list of different types of businesses across genres that are eligible for a loan for business:
Small home-based product ventures
Many homemakers and young entrepreneurs looking to make the best use of their time and earn some money often start small businesses from the comfort of their homes. These include businesses like candle-making, soap-making, pickles/papad, baking services, gift items, etc.
Even though the set-up cost for such ventures is low, they can avail of such a loan to fund their need for raw material and packaging. Having a GST certificate can help fast-track the business loan application.
Small service ventures
Service-based businesses such as website designing, public relations, blogging/vlogging, social media management, etc. have very low operational costs, but may have higher set-up costs like purchasing licenses, software, etc.
A loan can help streamline these expenses and also be used to spread the word around through advertising and marketing. Again, having a professional degree, licenses or GST certificate will make it easier to get a business loan application approved.
Additional Reads – Get to Know The Reasons Why Should You Apply For a Small Business Loan?
Small sole proprietorship concerns
Once the business moves out of home, the operational expenses scale up significantly. You have to pay for rent, utilities, infrastructure, licenses, salary, insurance, etc. for service-based businesses such as doctors, technicians, tax consultants, spa owners, and more. The running cost is even higher for those dealing in tangible products such as grocery stores, pharmacies and small retailing businesses.
As these businesses run from a commercial premise, a Shop and Establishment or Gumasta license is a must when looking to apply for business loan.
All other businesses such as small to medium manufacturing set-ups, sales and distribution businesses, software firms, manpower services, etc. are classified as Micro, Small and Medium Enterprises. These are capital-intensive businesses that have high set-up and operational costs, large working capital requirements and long-term projected goals. There is a business loan that is specifically designed to fulfill each of these needs of such ventures.
Additional Reads – Why Is MSME Loan the Perfect Finance for Small Business Owners?
Irrespective of the size of the business, you can easily apply for an online business loan with Tata Capital. The application process takes a few minutes, and on approval, you can receive the funds in your account within a few days.
Before you apply, be sure to check your credit score, complete your tax filings and go through the detailed list of business loan eligibility criteria required, especially those related to your business.