There are a number of business loans available in our country and contrary to common belief; the entire application process is far more streamlined than you thought of. Whether secured or unsecured loans Wholesale Jerseys Cheap , a loan officer is supposed to be your point of touch for the entire application process. Depending upon your business requirements and the framework, you need to choose the right business loan for your business. In this article we have explained the different types of business loans that you can consider to take your enterprise to the top of your industry.
1. Term Loan A term loan is a type of business loan that can be used for Capital Assets (equipment, land or building). These loans provide for the acquisition of long term fixed assets and have a pre-fixed schedule for the repayment. The repayment instalments may be monthly or quarterly and also the interest rate can be fixed or floating. In India the usual tenure for the repayment of a term loan is anywhere between two to ten years. So if you are looking for machinery loan, then many be you know how you must go about it.
2. Loan against Property Loan against a collateral (property) is easy to obtain and can be easily used for various business purposes such as advertising Wholesale Jerseys From China , salary of staff, start-ups, business expansions and so much more. The loan can be repaid in three to fifteen years depending upon the borrower鈥檚 profile.
3. Lines of Credit Line of Credit is one such good way to keep your business going on an everyday basis. It allows you to draw money as and when you need it (ofcourse till your credit limit). This type of loan is especially designed to meet working capital requirements such as business expansion, inventory and more in a short term. Use can use this money by transferring funds through online banking or through cheque or telephone transfer.
4. Loan against shares and mutual funds Apart from the above mentioned loans Wholesale Jerseys China , one can also raise loans against financial securities like mutual funds, Demat shares, FMP (fixed maturity plans), ETF (exchange traded funds). For this purpose t shares approved by the bank can only be used to raise funds. Also the tenure for this type of loan is renewed every 12 months.
5. Cash Credit Limit for Inventory or Receivables The cash credit facility is the type of loan that is granted in the form聽of over-drafts on the security of stock in process or trade or raw materials. This type of a secured loan can be obtained by pledging the current assets of the organisation such as receivables or inventory. Being ideal for financing the working capital (receivable and inventory) Wholesale Jerseys , this loan can be of great importance.
So, if you are looking to expand your business or make it stand-out, do understand the different business types and choose the one that perfectly fits your requirements.
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