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

Blogs

SUPPORT

Menu  
 
Apply Now

Tata Capital > Blog > Loan for Business > Types of Business Loan Agreements You Should Know

Loan for Business

Types of Business Loan Agreements You Should Know

Types of Business Loan Agreements You Should Know

Whether you’re an up-and-coming business trying to grow revenue or an established company looking to launch a new store, procuring the required funds can feel like a challenging endeavour. The easy availability of business loans, however, can help you realize your vision for your business.

Know More

When taking a loan for business, financial institutions help you decide which loan is best suited for your financing needs. However, it pays to do your due diligence. Although you can take your time to decide the specific loan you need, having a general idea about business loan agreements is important to getting a good deal.

Let’s take a look at different types of business loans and figure out the best one for your needs.

Working Capital Loan

To run daily operations in a smooth manner, you need a steady stream of cash flow. Even when business is booming, a lack of stable cash flow can halt growth and expansion, putting a damper on sales. Working capital loans help finance your company’s daily operations. They’re not meant for buying heavy assets or for making long-term investments; they offer the working capital you need to cover your short-term needs.

Term Loan

As the name suggests, term loans depend on the number of years (term) you require to repay. Short-term, long-term and intermediate-term loans are available based on your business’s credit score. The business loan eligibility for term loans varies across lenders. Tata Capital requires minimal documentation for term loans. All you need is your ID, bank statements and a business proof that shows the existence of your company and its profits in the last two financial years.

Hybrid term loan

These loans are temporary and easily accessible. When in need of quick money, take advantage of hybrid term loan facility to withdraw additional funds from your current account

Unsecured Loan

Most loans are secured, wherein the lender requires you to put down some collateral in exchange for the loan. Unsecured loans, on the other hand, offer money without any collateral. Established firms have a higher chance of lenders willing to write a loan as opposed to new businesses since they pose a higher risk. These loans can be useful for business powers who have large orders coming up and need money urgently without the long-drawn-out process of filling lengthy application forms.

Machinery Loan

If your business requires heavy equipment, it is important to invest in their repair and maintenance. You also require new machinery from time to time, which can potentially destabilize cash flow. Taking a machinery loan can help you buy or lease the required equipment to keep your business going.

Tata Capital makes running a business stress-free with tailor-made, unsecured loans that come with flexible EMI options. With loans for business, you can build the company of your dreams.

Apply Now

Give Your Business the Right Boost: Apply for a Business Loan Today

Apply now
Popular Searches
business idea udyogini scheme hsn code full form low investment business ideas top 10 most successful businesses to start transport business import export business in india mineral water plant cost collateral free loans
More About Loans
business loan msme loans gst interest calculator business loan for women small business loans business loan prepayment business loan calculator business loan interest rates business loan documents od limit for business od interest rate loan foreclosure calculator
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Private Equity Funds

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.