Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

Tata Capital > Blog > Loan for Business > 10 Benefits of Taking a Business Loan

Loan for Business

10 Benefits of Taking a Business Loan

10 Benefits of Taking a Business Loan

The adage, “You have to spend money to make money “is true! Your business’ growth rests heavily on the investments you are willing to make on advanced equipment, hiring skilled staff, etc. However, it is equally true that you can’t invest until you grow. The answer to this circular problem lies in a businessloan. With the help of business loans, you can not only bring in new machinery and employees but even purchase raw materials to avail bulk discounts and meet seasonal demand.

Let us take a look at the top 10 benefits of this popular financing route -

1. Flexibility for usage

Unlike equity investors, lenders like banks and NBFCs don’t interfere with how you run your business. They don’t dictate how you should use the business loan money; they’re just concerned with timely repayments. Therefore, a business loan is the best option to retain full control over how you spend funds.

2. Convenient and easy

Getting a business loan is as easy as getting in touch with a lender and talking about the possibility of securing financing. As opposed to looking for investors and holding discussions that take months at end, getting a business loan is convenient and far more straightforward.

3. Reasonable interest rates

Most lenders offer reasonable interest rates on business loans, as opposed to other types of loans—the reason being, cutthroat competition among lending institutions for customers’ attention

4. No sharing of profits

If you get an investor on board, they will expect a return on the profits your business makes. That’s not the case with a business loan. Here, you pay back a fixed sum to the lender, i.e., the principal and the interest amounts remain unchanged, no matter how well your business does as a result of the financial support.

If you want to understand what your monthly repayments will look like, use a simple online tool such as the business loan EMI calculator.

If you want to understand what your monthly repayments will look like, use Tata Capital’s business loan EMI calculator available online on our website.

Additional Read:- Financial Habits That Will Help You in Getting a Faster Business Loan

5. No collateral required

Business loans are usually offered without demanding any collateral, provided you meet the eligibility criteria. Because business loans are unsecured, they are an especially attractive option for small businesses that may not possess a lot of assets.

6. Working capital support

You can use the business loan money to increase your working capital, which can be a big help if you have a liquidity crunch. You can run daily operations and cover short-term expenses without having to dip into the emergency fund.

7. Multiple loan options

Most lenders will have various types of business loan schemes to meet the different needs of businesses. They may offer business loans, term loans, machinery loans, etc.

8. Tax benefits

The interest payable on a business loan is often tax-deductible. Check the interest limit and eligibility before you apply for business loan.

9. Quick disbursal

Business loans typically require minimal documentation and are quickly disbursed so that a company doesn’t have to halt operations or growth plans while waiting for funds.

Additional Read:- How to Improve Your Eligibility For a Business Loan For Women

10. Improved business credit

Taking out a business loan can also improve the business’ creditworthiness. However, you will need to make timely payments and repay the loan within its term to see your credit score improve. In the future, this can help you get more financing at lower business loan interest rates.

Want to break all business barriers with a loan for business? Tata Capital can help you avail of quickbusiness loans from Rs. 5 lakhs to Rs. 75 lakhs for a tenure of 12 to 36 months with interest rates starting at just 19%. Moreover, you can apply for a business loan online with us! We ask for no collateral, offer high loan eligibility, and structured EMI options. Grow your business with Tata Capital’s customised business loans today

Leave a Reply

Your email address will not be published. Required fields are marked *