Every business is unique and has its own set of challenges and the problem it solves for its customers. While, the businesses earn from their customers a lot of times they need business loans to cover for the lean periods or to invest in a fixed expense that will help them earn more in future. Both of these requirements require small business loans, while the working capital requirements need short term business loans whereas the fixed investments need a long term business loan.
While, that’s the basic, every business type has a unique requirement which needs a different business loan which may be unsecured business loans or the working capital loans. Here’s a quick guide on how to choose the right business loan for your small business.
Are Traditional lenders helping you?
Traditional lenders ask for collaterals in form of property papers of your home or workplace which is often not available with the small businesses. They also ask for multiple documents and are known for taking a lot of time to process the small business loan applications. Hence, the first step to understand if the traditional lenders are there to help you or not. If not, one needs to switch to the digital lenders which offer quick and effective unsecured business loans to the small businesses.
Choose the Right Digital Lender
The second step is to choose the right digital lender for your business loan, the digital lenders offer unsecured business loans and every digital lender has specialized product for certain business types. Thus, one needs to understand which digital lender is a right-fit choice for their business. The digital lenders like Indifi offer custom unsecured business loans or small business loans for businesses like retail shops, travel agents, hotels, restaurants, e-commerce sellers and small businesses who deal with large corporates.
Choose the right small business loan
The digital lenders like Indifi offer custom loans for different types for businesses. Here are a few commonly available unsecured business loans:
- Retail Shops. Retail Shops can avail unsecured business loans that are based upon their transactions against the card swipe machine or the digital wallets, these can be a short-term business loan or a long term depending on the requirements. Retail shops can choose to repay their small business loans from these transactions itself.
- Travel Agents. Travel agents can get the unsecured business loans based upon their transactions with the travel business aggregators and the amount is directly paid to the aggregators which helps travel agents to do more business and grow.
- Restaurants need frequent working capital loans or term loans to invest in new kitchen, machinery or to overcome a lean period. The digital lenders look at their transactions with the food delivery apps to access their credit worthiness.
- Hotels. Hotel is a capital intensive business and they frequently need money to cover the costs during the off season or to invest in creating new assets like a business section, a bar or a kitchen. Hotels are accessed by the digital lenders on the basis of their bookings with the online aggregators and can avail both term loans and short-term business loans.
- E-Commerce Sellers. E-Commerce sellers are assessed basis their transactions with the e-commerce sellers, basis their business cycle and transaction patterns they can get access to unsecured business loans.
- Vendors. Are you a vendor for large corporations or provide your services to them? Such small businesses can get their invoices financed by the digital lenders and can get unsecured business loans
Quick Application Process
The digital lenders allow the small businesses to apply for their small business loan online using a quick and simple application that doesn’t requires the business owners to visit any branch, the entire process at the digital lenders like Indifi is online and also keeps one posted on the loan status, they process the applications quickly and let you know the status as quickly as 24 hours as well.
Choose Lenders that offer Easy Repayments
Some top digital lenders like Indifi, offer flexible and easy repayment options to the small business to repay their small business loans. These repayments could be done in easy monthly, fortnightly or weekly installments and could also be linked to the business transactions without having to worry about the repayments.