How SMEs Benefit from Online Business Loans

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How SMEs Benefit from Online Business Loans
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• Did you know that SMEs contribute to nearly half
  of India's exports? An SME, also called Small and
  Medium Enterprise, are categorized broadly into
  two categories - manufacturing and services. A
  company is classified either as a 'Small' or
  'Medium' enterprise based on the investment
  amount. If you're the SME owner, you will require
  funds at regular intervals to keep your business
  running. In today's day and age, an online
  business loan is an excellent way to arrange for
  the needed funds. As long as you meet the
  eligibility criteria and have the necessary
  documents, applying for an online business loan
  shouldn't be too difficult. This article lists
  four ways you can benefit by taking out an online
  business loan.

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1.Flexibility in Usage

• Once your lender approves your application for an
  online business loan and you receive the funds,
  you can use it to meet various business
  requirements. No matter who your lender is a
  bank, NBFC or FinTech company they won't
  dictate how you use the funds. All they care
  about is you repaying your loan EMIs on time. So,
  you have complete control over how you can
  utilize the funds. You can purchase necessary
  equipment, buy inventory, or even use the money
  to pay employee salaries and utility bills. Every
  SME is different and based on your business, you
  will have additional expenses to take care of. An
  online business loan doesn't restrict you from
  doing so.

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2.Quick and Convenient

• Availing of an online business loan is much more
  convenient and gives you the funds quicker than
  if you had to approach potential investors. After
  zeroing on a suitable lender, you need to create
  your profile, submit relevant information, and
  upload the required documents. Then, all that's
  left to do is apply for an online business loan
  on their platform. There may be various loan
  products you can choose from, with varying loan
  amounts and repayment terms. Choose the loan
  you're comfortable with and apply. Depending on
  your lender, the funds will be transferred
  directly into your bank account within a few
  hours. The entire process from registration to
  disbursal will hardly take two to three days.

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3.No Need to Share Profits

• To get financial support for your business, if
  you bring an investor on board, they will expect
  you to give them a share of the business profits
  in return. As an SME owner, you may not be too
  comfortable with that, which is why we recommend
  you opt for business loan companies. Regardless
  of how much profit your company makes (due to the
  financial support you received), there is no
  expectation to part with your profits. All you
  need to do is repay your online business loan
  EMIs on time.

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4.No Collateral Required

• Another advantage of opting for online business
  loans from business loan companies in India is
  the absence of collateral. Suppose you're a new
  owner of an up-and-coming SME. In that case,
  you'll find this especially helpful because your
  primary focus will be growing your business. You
  will not be in a position to arrange for
  collateral of any sort.

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In Conclusion

• The four points mentioned above tells you why
  an online business loan is much more helpful than
  an investment firm. However, before applying for
  a business loan, be sure of three things the
  loan's purpose, your loan eligibility, and your
  repayment capacity.

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