Instant Business Loan: Introduction

The economic growth of the country indirectly leads to the economic growth of the MSME and the SME sector. More than 50% of the country’s GDP is contributed from the MSME and the SME sector. To uplift these sectors and give importance, the government has initiated quite a few schemes, offers and set up NBFCs. Also, the growth of FinTech has made the loan sanctioning process easier and faster. Instant Business Loan has changed the way small business owners take a loan and has also improved the productivity of the business as entrepreneurs can then concentrate on growing their business rather than insufficient liquidity.

What is Instant Business Loan?

Like the name suggests Instant Business Loan is a loan with a quick and easy process. In earlier days if an entrepreneur wanted to take up a loan, the process was quite tedious and tiresome. The borrower had to ensure all the documents were in place, there was enough collateral in place for the amount of loan borrowed, timely visits to the loan office, a high credit score and so on. But all of this has been eliminated in the near time due to the advancement of technology and support of the government.

An Instant Business Loan grants you the loan within a short span of time without having you to make multiple office rounds, heavy paperwork and so on. 

Types of Instant Business Loans

While Instant Business Loan itself is a type of loan that has it own major head, an instant business loan amount can be used for various purposes depending on your business and what you intend to do with the amount sanctioned to your business. There could be a variety of uses that one could put the money to use too. Below are a few mentioned types of loans that come under the purview of an Instant Business Loan

1. Working Capital Loan – One of the major loans takes by SMEs and MSMEs is the working capital loan. A working capital loan is used for the day to day expenses of the firm so one does not have to worry about liquidity and can concentrate on the business. A working capital loan usually is a short term loan for around 3 to 6 months depending on the entrepreneur.
2. Term Loan – When a business or an entrepreneur is looking to expand their business or grow in different locations and so no, a term loan is something that one takes. Term loans are mainly used to grow the business and hence are for longer periods of time with larger sums of money. A term loan would usually be for around 3 to 5 years to balance out the interest and principal payments.
3. Top Up Loan – Top up loans are taken in order to get an additional amount on existing business loan during the repayment tenure based on your eligibility. You can avail the maximum loan amount based on your eligibility.
4. Machinery Loan – If a business wants to purchase machinery or new technology has come in and they cannot afford to replace it, machinery loan can always be taken. Due to the reduce scrutiny required, a machinery loan can be processed instantly being one of the most important instant business loans that have been approved in the past.
5. Invoice Financing – A business that deals heavily on credit basis but requires liquidity on a day to day basis usually take on invoice financing. Invoice financing is when a third party, usually the lender takes on the invoices of the borrower and pay cash to the borrower immediately, giving the borrower enough liquidity. It is then upon the lender to ensure the credits from the invoices have been collected. This is a famous type of instant business loan taken by many entrepreneurs who rely on credit notes.

What is the process for Instant Business Loans and required documents

Answer a few questions to tell us a bit about your business, how much you need, and how you’re planning on using the funds.

Then once we’ve got your details, one of our finance experts will be in touch to explain the next steps. Every member of our team has years of experience helping small businesses receive business loans, so they’ll be able to answer any questions you might have.

When everything’s confirmed, your funds will be transferred directly into your business bank account, usually the same day – much quicker with banks who can take several weeks.

That’s it! That’s how simple the process for Instant Business Loans is. What is even simpler, is the number of documents required.

1. Documents Required                  
Personal KYC
– PAN Card

2. Residential Address Proof (Any One)
– Rent Agreement
– Driving License
– Voter ID
– Ration Card
– Passport

3. Last 6 months Current Account Bank Statement in Net Banking PDF format

4. Business KYC (Any One)

– GST Registration Certificate
– Shops and Establishment Certificate

The Instant Business Loan eligibility criteria are

1. You should have been in business for at least 12 months from the date of incorporation
2. Your monthly turnover should be at least ₹2,00,000
3. You should be above 21 years of age

Please note, this is the general eligibility criteria and can differ from company to company depending on where you choose to take the Instant Business Loan.

Benefits of Instant Business Loan:

You can use an Instant Business Loan to:

• • Increase your business cash flow

• • Lease bigger office premises

• • Move offices and expand to new locations

• • Purchase, lease or repair machinery and equipment

• • Upgrade to the latest technology/machinery

• • Keep inventory in check

• • Keep business according to the seasonal demands

• • Purchase raw material for bulk orders

• • • Expansion of business to another city
  • Scale up operations and take on bigger projects and much more

So what are you waiting for? Click here to know more about the details required for FlexiLoans Instant Business Loan approval and carry on your business worry-free.