About Business Loan

Banking and NBFC funding continues to be the lifeblood of India’s small and medium businesses. Business loans enable you to invest in infrastructure, operations, and plant and machinery, helping your company to flourish. Furthermore, company loans can be a reliable source of funding for crucial business activities.

Customized business loans are a new type of loan that is designed to address the unique demands of a new-age enterprise or startup. These loans allow your business to grow and gain the competitive advantage it needs to succeed in today’s environment.

What is a business loan?

A business loan is a sum of money borrowed to invest in a new or existing firm. It is critical for small and medium-sized businesses (SMEs) and large firms to understand how these loans function.

Before you begin taking out a loan, you must carefully consider all factors, including the people involved, the procedures, the rewards, the risks, and the terms and conditions. Continue reading to learn more about them

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Types of Business Loans

Most individuals believe that business loans can only be granted by banks and government agencies. The truth is that there are various sorts of business investments that can be classified as business loans on the market. It is critical for a small or medium-sized business owner to understand these business loan types in order to obtain finance for his or her company through the correct channels.

The six most common types of business loans for SMEs are listed below:

Bank Overdraft / Credit Line:

Both banks and online lenders offer this service. It allows for a revolving credit facility, in which a businessman can withdraw money from their company account up to a sanctioned amount, even if the account balance is lower. The remaining balance is treated as a business loan that can be repaid by paying the same amount, plus interest, into the account.

Equity Funding

In lieu of capital investment, business owners might raise funds by selling their shares in the company. While equity capital is a popular choice in more mature markets such as the United States, SMEs in India like it less because it comes with the danger of ownership dilution. Once the investment objectives have been reached, a business owner can retain the option of buying back shares to return to preferred ownership levels in the case of equity funding.

Short-term Loans

Due to the shorter repayment period, these loans have a reduced ticket size. A short-term loan is typically for a period of 3 to 18 months, as these loans are intended for working capital and modest capital expenditure. Credokart, on the other hand, provides short-term business loans ranging from 1 to 24 months, making financing more accessible to small and medium businesses in India.

Equipment Finance

The use of equipment finance to improve cash flow and working capital is common. The use of a loan or lease to purchase or borrow hard assets is known as equipment finance. Because the lender has rights to the equipment in the event of a default, it is a secured business loan.

Loan on Accounts Receivables

These are relatively short-term credits granted in lieu of accounts receivables, often known as invoice financing. This type of business credit has the drawback of being available exclusively to SMEs with commercial customers. The loan’s tenure usually ends on the invoice due date, and full payment, plus interest and processing fees, is required.

Factoring / Advances

Under this arrangement, the money is paid in advance by the factoring company to the business for accounts receivable. However, instead of paying the full amount, a percentage of the amount, usually 70% to 90% of the invoice value, is paid. The rest is retained to cover unforeseen charges, breakage, delivery, and quality errors. For this kind of business loan, both the buying and selling companies have to come on board and work with a factoring company.

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Features of Credokart Business Loan

Credokart provides small and medium enterprises in India with personalized business loans. Our loans are free of the bureaucratic red tape that sometimes comes with bank loans, and the application, approval, and disbursal processes are all very straightforward. We’ve created a quick and easy-to-use digital interface that reduces human involvement and so speeds up the entire ‘getting a business loan’ procedure.

Superfast Business Loan Processing

We’ve taken loan processing speeds to the next level with our Online Only loan application approach. We can eliminate a lot of manual effort and provide same-day loan approvals as a result of it.

Get Business Loans up to ₹ 2 Crore

We provide qualifying SMEs with business loans ranging from ₹50,000 to ₹2 Crore. Our broader lending window boosts your chances of getting a business loan approved and offers you the finances you need to grow and expand your firm.

Enjoy the best rates

Credokart uses proprietary big data and machine learning tools to determine the lowest interest rates on business loans, on a case-to-case basis. This means the interest rates you get from Credokart are the best ones available for your business.

Fast Turnaround Time and Disbursals

Credokart provides business loans that are significantly faster than the 59 Minute Business Loan scheme. You may acquire a business loan in 3 days with our online business loan processing, compared to 8 to 10 days with banks.

No collateral required

Credokart’s business loans do not jeopardize your important assets. We offer unsecured business loans without collateral or security. As a result, you no longer need to be concerned about the development of your capital assets.

No Hidden Costs

Credokart offers business loans with no hidden fees or levies. We just charge a one-time processing fee of 2% to 3% of your loan amount, and that’s it. This enables you to keep a larger portion of the principal for future business expansion.

 

 

Extended Loan Tenure

Our loan tenure, which ranges from 1 month to 36 months, greatly expands the credit relief available to your company. A business loan with a duration of 6 months or more can provide you with the necessary buffer to address operational concerns if you are experiencing temporary business difficulties.

Benefits of Business Loan by Credokart

Business loans from Credokart are enabled you to redraw your business strategies for matching today’s agile work environments. Here are the benefits of taking a business loan from an NBFC like Credokart.

Faster processing:

Quick processing translates to faster credit for your company, allowing you to expand your horizons and seize opportunities as they arise. A timely business loan can help you raise your marketing potential, streamline your operations, and boost your profit margins.

Preserving your ownership:

Because it’s an unsecured business loan, you don’t have to worry about losing valuable assets or giving up valuable company stock in exchange for money. As a result, a Credokart business loan lets you keep your ownership while also allowing you to expand your firm.

Streamlines your cash flow:

Credokart business loans broaden your window of opportunity by supplying both finance and time to help you manage your cash flow and enter the profitable territory. By providing an investment that can be returned in installments, these loans help you to create a balance between your business fund and company capital fund.

Improve your credit score:

Because we disclose loan accounts to all credit bureaus, an NBFC loan from Credokart is the greatest approach to boost your business credit score. Furthermore, a Credokart business loan is especially advantageous for organizations that have just seen a credit score drop owing to unanticipated market situations.

Business Loan - Eligibility

To expedite the processing of business loans, Credokart has reduced the eligibility standards to the bare minimum. We do not require too many documents or unnecessary paperwork that can hold up the loan approval process.

  • A well-established business that has been in operation for at least six months.
  • In the three months before your loan application, you must have had a minimum turnover of ₹90,000 or higher.
  • The company should not be on the SBA’s “blacklist” or “excluded” list.
  • Your company’s physical location should not be on the list of negative locations.
  • Small business loans are not available to trusts, NGOs, or charity organizations.
  • In case, you’re not sure if your company comes under a restricted category or location, feel free to contact us to confirm your eligibility.

Business Loan FAQ's

A business loan is a loan used to fund investments in a company. It comprises borrowing money for a certain purpose and repaying it at a defined interest rate.

A business loan can be used to fund your business’s investments and projects. A business loan can help your company grow at a faster rate and allow you to complete stalled initiatives more quickly.

Yes, we have a three-step loan application process that is fairly quick. Application submission, approval, and disbursement are all steps in the process. This process can take up to three days, while banks can take up to 8-10 days.

On the other hand, our interest rates are very reasonable and cheap. We also don’t require any kind of security or collateral. As a result, our loans are unsecured, making them less hazardous for you.

We do not impose any additional fees if a loan is foreclosed, and our business loans have no hidden fees or costs.

No, the entire loan application process is completed online. The document verification is also done online, resulting in a stress-free loan application process.

Credokart’s business loans are free from any bias and prejudice as it is an automated process. The terms and conditions of the loans are equal and fair.

Due to the different ranges of ticket sizes we offer at Credokart, there are higher chances of loan approval from us than a bank.

Despite the fact that our loans are processed faster than those offered by banks, we strongly advise you to provide accurate documentation and complete the online application process completely to avoid delays in the loan approval process.

Credokart allows you to apply for a business loan online. The procedure to be followed is outlined in the above section.

We’ve made the entire loan application procedure online, which helps us to save money on any human labor that would otherwise be required. The savings realized as a result of the reduction are passed on to the borrower in the form of low interest rates.

Credokart would consider your firm for a business loan if you have made a minimum of INR 90,000 in the last three months.

The highest loan amount that can be taken out is INR 2 crores.

 

 

 

 

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