A business can need funding to infuse additional capital in the venture from time to time. On many occasions, such reckonings run on time limits and funding is required quickly at one’s behest. As business financing often involves assessing borrowing venture’s risks thoroughly, finding a quick financing option can be quite a trouble. Not with a business loan though. It is a financing option that is dedicatedly designed to meet the funding needs of businesses at a short notice. The loan option comes with several features and facilities that make it stand out when a venture is in need of quick, short-term funding.
Before deciding on your financing option, it is best to get a detailed understanding of what this funding avenue encompasses. Let’s get a better look at why these loans can be just the right financing model to go for when seeking short-term funding in minimum time.
Easy Approval Within a Few Minutes
Understanding how vital the timing of financing can be for a business’s sustenance, growth, and expansion in the long run, lenders have simplified redundant steps to make quick approvals possible. With some of the best lending institutions, approval for a business loan comes by swiftly within a few minutes of application.
You only need to make sure that you fulfil all the eligibility requirements set by your lender up to the mark. Of all the requirements, your individual and business credit score can be the crucial factor on which the fast approval of your loan hinges.
Disbursal in 24 to 48 Hours
Once the loans are approved, lenders are quick to process them to the business’s bank account too. This facility remains in line with providing funding swiftly to meet the urgent funding needs a business may have such as introducing additional operating capital or tapping a hot new opportunity running in the market. If you have carefully chosen the financial institution to avail this loan from, you are likely to receive the approved loan amount in your account within the next 24 to 48 hours.
Tenure Between 3 and 5 Years for Repayment
Businesses financing is often classified into short, mid and long-term funding to align with the output that it provides and the time taken to do so. The need for quick funding is often found to be correlated with short-term objectives that bring the outcome quick. To align these borrowings with the utility, businesses look for short-term financing only. Thanks to the innovative financing models of business loans, you can easily repay the advances over a tenure of 3 to 5 years.
No Risk to Asset with Zero Collateral
Another perk that makes these financing options suitable for introducing capital to the venture is that most of these loans are unsecured business funding options. It means that you do not need to back your borrowing with a business asset of same or higher market value. The absence of any collateral makes business financing easy to avail too. Loans backed by collateral often involve extensive assessment for asset suitability, which may involve significant time.
Simple Eligibility Criteria and Paperwork
These business advances also come with eligibility requirements that are easy to meet. You need to be an individual within an age range of 21 to 70 years. The business must carry a vintage of not less than 3 years to be eligible for funding. Also, the income must be stable and hit the minimum mark as per the city the business is located in. Plus, a credit score of at least 700 is mandatory for both individual and the business.
As for documentation, paperwork must be completed adequately involving KYC documents, documents supporting business existence and vintage, financial statements that are audited, and the likes. It is best to enquire with your financial institution of any additional eligibility and paperwork requirement to check your eligibility and proceed for your application accordingly.
Once you have checked out all the favourable features related to the advance, you can proceed to apply for your business loan online. Check that you have met all the criteria set by your lender and arranged all necessary documents for submission before applying for the advance. Keeping all these aspects in place increases your chances of easy loan approval in no time.