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Small Business Loan

What is Small Business Loan?

Any entrepreneur knows that his ideas can only be materialized if he manages to fund his idea. Thus, the first thing that a small business or start-up needs is a small business loan. A small business loan is not different from any other loan: it is a sum of money, repayable with interest, sanctioned by a lending institution.

However, with the changing market and economy, debtors get more options in terms of money lenders. In recent times online business loans are becoming a popular choice in India. FlexiLoans is one such online money lending organization in India.


Features and Benefits of Small Business Loans

Our loans for small businesses in India are tailored to help entrepreneurs achieve their business goals. We understand your company needs better than anybody else, which is why our loans are structured to maximize your benefits.

  • Simple and fast

With the world becoming more global, business loans are becoming significantly easier to obtain. Many banks and lenders now approve such loans without any collateral. This enables independent businesses to thrive. Additionally, the online loan application process is very easy. It involves a few steps and requires some paperwork.

  • Repayment options

Nowadays, lenders offer a variety of repayment plans for repaying business loans. Banks and lending agencies are typically aware of the challenges involved in operating a small business. So, they provide terms and conditions that are adaptable. They can permit an increase or decrease in the EMI amount depending on the company's financial situation. There is also an option of making bullet payments.

  • Credit rating

Applying for a loan at FlexiLoans is the perfect way to boost your business's credit score, as we disclose loan reports to all three credit bureaus. Additionally, a business loan from FlexiLoans is particularly advantageous for companies that have recently experienced a credit score drop due to unexpected market conditions.

  • No collateral required

Small business loans do not endanger your valued investments. We provide unsecured business loans. As a result, you no longer have to consider building your financial assets.

  • Low-interest small business loans

On a case-by-case basis, FlexiLoans uses advanced methods to analyze and charge the lowest interest rates on business loans. This ensures that the interest rates offered by FlexiLoans are reasonable for any company.

  • Quick disbursal

We acknowledge that when you request a business loan, you require funds immediately. Keeping this in mind, we provide instant business loans. We transfer business loan amounts within just 3 days. This way, the company's growth will not be hampered by a shortage of funds.

  • Unsecured business loans

We give collateral-free business loans. You do not have to submit any collateral to us to obtain funds for your company. Our no-collateral business loans allow any small business owner to receive funds to fulfill his or her working capital needs.

  • Minimal documentation

One of the primary benefits of small business loans is that the loan application processes demand minimum paperwork. As a result, you do not have to prepare numerous documents to obtain a business loan. These loans are provided without any security. There is no need for asset or collateral papers. You can upload documents for business loans online.

We remain committed to assisting small business people in India, and our business loan interest rates are very competitive. It enables business people to obtain financial assistance without worrying about repaying a substantial amount of money.


How to Use Small Business Loans In India?

Starting a company can be challenging, particularly if you lack financial stability. As a result, the most practical way to advance in this fiercely competitive dynamic market is to seek assistance from an NBFC. Their lending mechanisms are free of regulatory risks, and they will assist in meeting the needs of a start-up.

Several challenges come in the way of a company’s growth. Some of these problems are minor, while others are severe. Both of them necessitate the company owner's undivided attention to achieve prosperity and fulfillment.

Here are some areas where you can spend your loan amount for growing your business in India:

  • It can assist you in keeping track of your payroll.
  • You can recover company costs or pay off debts.
  • If you're looking to expand your facility or keep it in good shape, you can spend some amount on renovating your business place or developing your business’s website.
  • You can buy new-age equipment for your business.
  • You can execute innovative publicity and advertisement campaigns.
  • You can use it as an emergency fund.

Apply for Collateral-free Small Business Loans Online

Operating a company is complex, and you must continuously track and ensure a smooth flow of finances to keep the operation afloat. Small business loans assist businesses in fulfilling various business objectives. Businesses can use the money for purchasing new equipment, extending activities, and maintaining working capital. One of the most significant advantages of unsecured business loans is that they are approved very quickly and do not require lengthy documentation. They only need the legal evidence of operation, cash flow reports, and the borrower's credit history.

Follow these steps to apply for small  business loan:

  • Online application

Go to the FlexiLoans website and initiate the application process by filling in all the required details.

  • Uploading of documents

Upload all the necessary documents for the verification process. Then, the lender will evaluate the credentials of the business and check for its eligibility.

  • Disbursal of the loan amount

After the verification process, the lender will approve your loan request and send you an agreement. After you sign the agreement, the lender will transfer the amount to your account.

You can apply for a GST business loan at FlexiLoans. The collateral-free small business loans offered by FlexiLoans are designed to meet the needs of rising companies. The robust digital interface speeds up the processes so that business owners have an uncomplicated and hassle-free experience throughout the application procedure.


Eligibility for Small Business Loan

A loan for small business in India can be obtained without any security. It mainly depends on the lender. There are some eligibility criteria that the businesses need to fulfill for getting the loan amount. These criteria are listed below:

  • An individual must be 21 years of age when applying for the loan and not more than 65.
  • Small Business loans are available to individual corporations, sole proprietors, and private companies involved in trading, production, or services.
  • The applicant must have worked in the industry for three years and have at least five years of experience.
  • Offers small business loans to those businesses that have been running for at least a year and have monthly total sales of at least ₹2,00,000.
  • If the company has been in service for more than 3 years, you can apply for a small business loan.
  • We would also ensure that there are no errors in previous accounts and, as such, the company is tax compliant.

Why should you choose FlexiLoans for your small business loan in India?

Before you make your choice, you must be sure about the advantages you can get at FlexiLoans. The following are precisely the benefits you can get regarding your business loan.

  • Quick disbursal: within 48 hours.
  • The documentation required for the instant business loan is simple and minimal.
  • The process of loaning is not only easy but also safe. FlexiLoans discards any chance of fraud relating to unsecured business loans.
  • The processes at our organization are transparent and do not require any hidden charges.
  • We provide small business loans without collateral.
  • Competitive small business loan interest rates.

How to get a small business loan approved online?

Small companies may obtain funds via debt or equity. Although equity constitutes mutual ownership and does not include repayment, debt is seen as a liability. Convincing the lender that your company can successfully repay the loan increases the chances of your loan request being approved.

  • Requirements

Lenders usually demand specific requirements for business loans. Do not be afraid to inquire about the terms and conditions. Lenders appreciate consistent cash flow, accurate accounting, and maintaining sufficient financial reserves.

  • Business plan

To qualify for a loan, you should have a solid business plan. It serves as an introduction to your business. A good business plan should be able to articulate the business's priorities, purpose, goals, and strategies for fulfilling those goals. Keep in mind that a solid strategy indicates that the venture is going to succeed. A good plan increases the chances of loan approval.

  • Your intent

Lenders analyze the purpose of your loan. For instance, if you want to buy equipment, you must apply for an equipment loan. But if you need funds to keep the company going while waiting for payments from your debtors, it is essential to qualify for a short-term business loan. Thus, specifying the purpose of the loan enables the lenders to decide if the requested amount will fulfill your needs.

  • Healthy credit score

Nowadays, all lenders are required to validate each applicant's eligibility for a loan. It is essential to review your credit records. A credit rating of 700 or higher is considered outstanding. If your credit score is less than 680, getting a loan can be difficult. In that case, you can consider a revenue-based loan as an option. If your credit score is significantly less, work diligently to improve the score to apply for any small business loan.

  • Financial statement

Obtaining a loan for your company becomes simpler if you have updated financial records. Banks will review your financial statements and cash flows to determine whether you are capable of repaying the loan or not. If you have not been maintaining these documents, start doing it now.

  • Requested loan amount

While applying for a loan, it is important to do extensive analysis to ensure that you do not apply for any extra loan amount. Undervaluing can give rise to financial difficulties in the future. If you do not make a proper analysis, the lender may think that your business idea is not good enough to generate profit. To eliminate both of these concerns, understand your business needs and make accurate financial forecasts.


Documents Required for Small Business Loan

  • Personal KYC: PAN card
  • Residential Address Proof (Anyone): Rent agreement, driver’s license, Voter’s ID, Ration card, Aadhaar Card, Passport
  • Banking: Last six months’ current account bank statement
  • Business KYC (Anyone): GST registration certificate, shops and establishment certificate
  • Financial documents (For loans greater than 20 Lakhs): 2 years Audited financials, Last 2yrs ITR, GST Returns of 6 months

Frequently asked questions

What are the purposes for which I can get a Small Business loan via FlexiLoans?

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:
  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Why should I avail Small Business Loan via FlexiLoans?

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

When to get a small business loan?

You can get a small business loan at any time depending on your interests. You can take it to expand your inventory, meet seasonal requirements, sudden cash requirement due to irregular cash flow, etc For more information click on the link here

What documents are required to apply for a small business loan?

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

Are there any charges other than interest rate that I have to pay to avail the small business loan?

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

What is the small business loan interest rate?

Interest rates start at as low as 1% per month. However, it may depend on various factors like your loan amount, tenure, eligibility, etc.

How do I qualify for a small business loan?

Obtaining a small-business loan may be a lengthy procedure. By determining in advance if you will meet a lender's standards, you may avoid possible dissatisfaction. Here are four strategies to assist you in qualifying for a small-business loan.
  • Enhance both your personal and business credit ratings
  • Understand the lender's minimal standards and credentials.
  • Managing seasonal working capital requirements
  • Compile financial and legal records
  • Create a solid business plan

What credit score is needed for a Small Business loan?

While most lenders will evaluate your credit score when considering your business loan application, each lender will have its criteria. However, credit scores of 700 or above are often required for business loans, business lines of credit, and equipment financing. Your credit rating will also affect the interest rate and other loan terms.

What are the Processing Fees for Small Business Loan?

The processing charges for a small business loan are pegged at 2% of the loan amount you decide to avail of from FlexiLoans.

What is the small business loan repayment process at FlexiLoans?

While small business loans are favourable for your organisation, it is important to return them properly and on time. Repayment of loans on time improves your credit score. The following is the procedure for repaying the loan:
  • Each month, increase your EMIS by a certain percentage.
  • Enroll in autopay
  • Take into consideration refinancing a loan.

How can I know the EMI for my small business loan?

The EMI is the monthly payment on a loan, whereas the EDI is the equal daily payment on a loan. The Small Business Loan EMI Calculatorcalculates your monthly instalments using formulae that take into consideration variables such as loan amount, interest rate, and term. Utilize the calculator to help you arrange your repayments without straining your budget.

Can I get a small business loan if I have a low credit score?

While obtaining an unsecured small business loan with a low credit score could be challenging, it is feasible at a higher interest rate. Despite the high interest rate, you may qualify for an unsecured small business loan based on your business plan proposal.

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

You can get a small business loan at any time depending on your interests. You can take it to expand your inventory, meet seasonal requirements, sudden cash requirement due to irregular cash flow, etc For more information click on the link here

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

We may charge processing fee to facilitate the loan towards legal and documentation charges.

Interest rates start at as low as 1% per month. However, it may depend on various factors like your loan amount, tenure, eligibility, etc.

Obtaining a small-business loan may be a lengthy procedure. By determining in advance if you will meet a lender's standards, you may avoid possible dissatisfaction. Here are four strategies to assist you in qualifying for a small-business loan.

  • Enhance both your personal and business credit ratings
  • Understand the lender's minimal standards and credentials.
  • Compile financial and legal records
  • Create a solid business plan

While most lenders will evaluate your credit score when considering your business loan application, each lender will have its criteria. However, credit scores of 700 or above are often required for business loans, business lines of credit, and equipment financing. Your credit rating will also affect the interest rate and other loan terms.

The processing charges for a small business loan are pegged at 2% of the loan amount you decide to avail of from FlexiLoans.

While small business loans are favourable for your organisation, it is important to return them properly and on time. Repayment of loans on time improves your credit score. The following is the procedure for repaying the loan:

  • Each month, increase your EMIS by a certain percentage.
  • Enroll in autopay
  • Take into consideration refinancing a loan.

The EMI is the monthly payment on a loan, whereas the EDI is the equal daily payment on a loan. The Small Business Loan EMI Calculator calculates your monthly installments using formulae that take into consideration variables such as loan amount, interest rate, and term. Utilize the calculator to help you arrange your repayments without straining your budget.

While obtaining an unsecured small business loan with a low credit score could be challenging, it is feasible at a higher interest rate. Despite the high interest rate, you may qualify for an unsecured small business loan based on your business plan proposal.