3 fast dispensing business loans that you haven’t heard of!

There are a lot of entrepreneurs that have recently started going for a business loan in Delhi. If you want your business to grow and not stagnate, you’re going to need a business loan. There are so many self-made entrepreneurs in the world who have climbed the ladder of success by availing business loans. You may need a business loan for a number of purposes, including paying wages to the employees, building new headquarters, buying equipment, campaigning etc. 

The problem though is that there are some business loans that serve great purposes but they are not easily sanctioned. They are only disbursed after rigorous background checks and credit history checks have been performed. If you don’t want to go through that process and want loans quickly then you will need fast loans. Let us discus some of the fast business loans that you haven’t heard of.

Peer-to-Peer (P2P) Loans

This platform of lending loans is gaining popularity and the simple reason is because it cuts out the need for a middleman. You should keep in mind, however, that unlike taking loan against property where you get lower interest rates because they are secured loans, here the rate of interest is higher.

Also, every P2P loan is divided among several investors, which helps spread the risk evenly and thus, everyone has to bear a lesser risk. The entire transaction takes place online and compared to a bank, it is quite simple and convenient – which has been a major reason in its growth.

Micro Loans

All you need is a business plan and you can get a micro loan from lenders like NBFCs. This is basically small funding that can help out growing startups and other small businesses. Compared to the traditional business loans, the interest rate is lower, but the tenure is also small – ranging from 2 to 5 years.

Business Line of Credit

Just like a credit card, the business line of credit allows you draw money whenever you need and pay for it at a later date. The upper limit for withdrawal is fixed depending upon your financial stability and the size of your business. The bigger business you have, the higher amount you can withdraw.

You are free to borrow upto the upper limit so long as you keep making minimum repayments on time. The business line of credit, just like a credit card charges a monthly interest on your dues. To avail this loan you’ll have to present your personal and business tax returns, bank account statement, business profit-and-loss statements and a balance sheet and business license documents before the concerned authority.