Types of Bank Loans for Business
A term loan is a hefty amount that you borrow and repay it along with the interest amount over a specific tenure. You can easily avail long-term. Low-cost term loans from online lenders or banks.
Short-term loans are very similar to the regular term loans. However, the difference lies in the payment tenure. You will have to repay the debt over a shorter period of time when you go for a short-term loan. Some lenders offer smaller amounts with short-term loans that come with a tenure ranging between 3 months and 18 months.
Business Line of Credit:
Both online lenders and traditional banks can offer revolving lines of credit to you that can be utilised whenever you need financial assistance for your business.
You may use an equipment loan for financing the cost of buying new equipment that will be required in your business. The equipment will be used as collateral for the loan.
You can avail fast cash from the invoice financing companies based on the outstanding invoices associated with your business. You can enjoy up to 85% of the outstanding invoice. In case the invoice remains unpaid, you be charged a factor fee on a weekly basis.
Merchant Cash Advances:
If you wish to avail fast cash that you have repay with a part of the daily credit of your business and the debit card sales, you should go for merchant cash advances. In case you have a credit that does not look good, merchant cash advances can prove to be a good option. However, this particular financing option can turn out to be really expensive for you.
Business Credit Cards:
This s not a business loan technically. However, business credit cards can be used to finance your business. Your personal finances and business related finances will remain separate when you use a credit card specifically designed for your business needs. You can also build business credit by using this card and then earn great rewards and cashback on the purchases that you make.
Top of Business Loan Providers in India:
The names of the top 10 business loan providers in India are mentioned below:
- ICICI Bank
- Fullerton India
- HDFC Bank
- Bank of Baroda
- Au Financiers
- Magma Fincorp
- Federal Bank
- State Bank of India