Scale up your business with collateral-free business loan

There are several reasons why businesses often need financial support. It may be their daily operations, settling some bills, or a growth plan. Not every business can manage financial requirements independently and usually prefers borrowing money from outside. Some of them opt for personal borrowing, while others approach financial institutions.

These financial institutions offer various loans for businesses that help them manage their financial needs. A collateral-free business loan is one of the types of loans businesses can avail to manage finances. Continue reading to know more about how you can scale up your business with this type of loan.

Concept of Collateral-Free Business Loan

Let’s begin with understanding the concept, and then we will see how it is useful.

Collateral refers to security or an asset the lender requires from you as a guarantee before granting the desired loan. Once you pay off the loan in full, the lender repossesses this security or asset provided by you. However, the lender seizes this asset upon defaulting on the repayment, and they also have the right to sell it to cover their losses.

Startups and small businesses usually don’t have many assets, and they can’t afford to take the risk of providing those assets as collateral for a loan. In such turbulent times, the collateral-free business loan comes into the picture. It helps such businesses get an initial push and get back on track.

Collateral-free business loans are business loans with no collateral funding requirements. By getting the desired funds promptly, businesses can focus on their growth effectively. Collateral-free business loans may be term loans ranging from 1-10 years or short-term business loans for routine business activities such as inventory handling or staff remuneration.

Characteristics of Business Loan without Collateral

You can get an MSME business loan without collateral to give your small and medium-sized businesses momentum. Some of its features are –

• Quick Processing
  You can get the authorization of your loan granted within three business days of receiving it with the fast disbursement procedure followed nowadays. Flexiloans strive to expedite the loan’s implementation and assure you that it will be made available within the stipulated time frame.
• Options for Repayment
  Currently, we provide you with a variety of repayment alternatives for business loans. Since lenders are aware of the problems inherent in small business operations, they have a range of adjustable terms and conditions. Depending on the company’s financial position, lenders can allow for a variable EMI and also allow for bullet payments in the case of recurring payments.
• Credit Rating
  Improving your business’s credit score is highly important, and availing of loans from us is an excellent way to do that. We communicate your loan activity to all the major credit bureaus.
• Minimum Required Documents
  You can apply for a loan with minimal paperwork, which is a primary advantage. And since we offer company loans without needing equity, you need not submit any asset or collateral documentation. We also allow you to upload your business financing paperwork online. Thus you can even apply for business loans online.

Advantages of Collateral-Free Business Loan

Since this loan does not require collateral, entrepreneurs with no assets can apply for it. Apart from this, there are some other benefits of availing the collateral-free business loan as follows –

• Reasonable Interest Rates
  SMEs and MSMEs can avail of this collateral-free financing at attractive interest rates for their businesses. Such loans are more popular with industries due to these subsidized interest rates. Also, borrowers with a good credit rating can avail of a further reduced interest rate for business loans.
• Quick Approval of Loan Applications
  Quick and easy funding is another benefit of a collateral-free business loan for borrowers. They need not waste their time transferring collateral documents into the lender’s name or spending time in the valuation of assets. Availing of these loans is a hassle-free option for the borrowers due to the timely processing of their applications by credit rating agencies. Also, our online application hardly takes 10 minutes, and you do not have to visit any branch during the loan approval process.
• A Variety of Loan Options
  Depending on the suitability, borrowers can choose from different collateral-free business loans since major renowned banks and NBFCs offer these options. They can prefer to invest in government-introduced schemes specifically designed for this purpose. Borrowers can avail of both a long-term loan and a short-term loan. Also, there are no restrictions on using the loan amount. You can avail of collateral-free loans to fulfil different purposes such as inventory requirements, purchasing new machinery, or expanding office space.
• Flexible Repayment Timelines
  Along with the reduced interest rates, you can also get a flexible, customized repayment option for up to 48 months. You can repay your loan sooner to achieve debt freedom as your revenues grow. FlexiLoans offers multiple repayment alternatives specially tailored to your financial circumstances and can be advantageous.
• End-Use Adaptability
  There are no restrictions on the utilization of funds received through this instant business loan. You can use the cash to improve current infrastructure, acquire new equipment, recruit additional staff, or satisfy other technical needs.
• Easy Access to Finances
  Small businesses occasionally face an urgent requirement for cash into their businesses. You may facilitate the acceptance of your business loan without collateral by applying online with minimal documentation. Online document submission promotes the verification procedure and accelerates disbursement.
  The above features and benefits of unsecured business loans are worth considering.

Final Thoughts

We hope that the concept of Collateral-free business loans is clear to you and you have understood how it is beneficial for scaling up your business. Along with satisfying the urgent financial needs of your business, this loan also allows you to expand your business and achieve further growth. If you are planning to avail collateral-free business loan, you can check your eligibility for a business loan and apply online at FlexiLoans.

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