When To Opt For An Unsecured Business Loan For Your Business Needs?


May 16, 2018

All businesses initiate their journey with the sole aim to make profits and create a significant name and brand presence in the market. However, growing a venture requires ample investments; every entrepreneur comes across a cash crunch situation in his earlier days. Moreover, with major lending organisations requiring the mortgaged guarantee of an asset, makes the process even tougher.

This is where an unsecured business loan comes into play providing businesses with sanction amounts without needing to mortgage or hypothecate any security. In this respect, financial lending institutions like Bajaj Finserv offer their Flexi interest-only Loan facility, allowing business to grow at ease.

When to apply for an unsecured loan?           

Now, while taking a loan can solve numerous financial problems for a venture, one needs to understand the right moment of opting for an unsecured loan. In this respect, have a look through the following section.

  • Expanding one’s floor space –

With the gradual growth of a business, project as well as employee count will also increase.

What to do here?

Under such circumstances, opting for an unsecured business loan can provide an able financial boost to a venture. With a considerable amount at hand, business owners can look to rent or purchase a larger floor space; they can provide accommodation for a larger number of employees and hence manage more projects simultaneously.

  • To build a credit score –

If you, as an entrepreneur, are looking to opt for an unsecured loan from a financial institution, you must project a promising CIBIL or CRISIL score to the lending organisation. A CIBIL Score reflects your track record as a borrower to have repaid a borrowed amount within the allocated time.

In fact, a comprehensively high CIBIL score can also allow you to receive a pre-approved loan from your lending organisation; thus making the loan sanction process simpler and faster.

  • Inventory requirements –

Similar to your growing employee strength, replenishing your inventory stack also plays a crucial role. Inventories undergo wear and tear with use and need replacements. Worn out inventories and tools can lower your productivity and decrease the overall returns on your investment.

An unsecured business loan, under such conditions, can prove handy in restocking one’s inventory without needing to spend a share of their profit or principal.

  • A new business opportunity –

Businesses must take up every growth opportunity coming their way to rise to new heights.

Instances such as…

  • Provision to order a bulk inventory at a nominal rate
  • Expansion possibilities promising greater ROI
  • Incorporation of new employees

…can call for the need of immediate investments.

Applying for an unsecured loan can provide a venture with the amount needed for making such developments.

  • During unwanted situations –

Crisis situations are inevitable for any business and can lead a venture into a situation of economic hazard. During such a period, it may become difficult for you to pay your employees’ wager, restock inventory or even purchase or repair damaged or broken instruments.

So, where can you seek help?

However, a pre-approved and unsecured loan from a reliable financial institution can be your saviour. It will not only help you pay off your debts but also to revive your lost stocks and get your venture back on track.

Additional Information –

The non-dependence of these loans on collaterals also ensures a customer regarding the safety of their assets and utilise the benefits of an unsecured loan more effectively. Moreover, in contrast to a secured loan where the received amount had to be used for specific purposes only, users can utilise their unsecured loans in any way they like.

So, start growing your business or recover from an undesirable economic situation by availing an unsecured business loan from a dependable financial lender.

Witness your venture accelerate its ROI within a short time frame!

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