5 Situations When You Should Opt for a Business Loan From Ziploan

Agencies
·5-min read

While running any business, there is a constant cash flow that goes in the business and as a business owner; one must always be mentally prepared for any urgent expense, especially when if it is a small business. Whether there is a need want to buy machinery or pay out the salaries, funds are very essential at every step. During such times, an instant flow of cash is required to meet the emergency needs, and this is where instant business loan from Ziploan comes into picture.

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With the rise of so many lenders in the market, it is now comparatively easier to get the business loan in just a matter of few days. Moreover, the Government of India has also launched couple of schemes to assist the MSMEs and encourage them to contribute to the GDP f the nation, year on year. Some of such schemes include Stand up India scheme, CGTMSE loan scheme, PMMY scheme etc. All what is need is to fill out the loan application form and fulfil the eligibility criteria as set by the lending institution. Once this is done, and if the business loan is approved, the money gets credited directly in the bank account quickly. The applicant can choose the repayment tenure based on his/her comfort – anytime between 12 to 36 months. While Ziploan provides flexible repayment period option, thereby giving flexibility to the business owner to repay the MSME loan amount in 12/18/ 24/36 months.

The small business owner can approach various lenders for several types of business loans, like machinery loans, working capital loans, term loans, collateral free loans, capital loans etc. However, the presence of these various types of loans in the market may confuse the business owners. And hence before deciding to go forward with a specific type of loan, one must first to assess all the needs and then make a strategic decision.

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Below mentioned are some of the instant business loan that the business owner may need.

1- Machinery loan

A machinery loan is vital for a business in several ways. While the one who is running a manufacturing business may need to opt for an MSME loan, at the same time, he/she might also feel the need of acquitting a machinery loan, because there is a lot of wear and tear that happens with the machinery, and it always comes with added expenses as well to upgrade it or even buy a new machinery as well, at times to keep ahead of the competition with updated technology and to satisfy the growing needs of the customers. For all these reasons, listed above, a machinery loan comes to a rescue.

2- Working capital loan

A working capital loan is primarily essential to meet the short-term business loan requirements. The difference between current assets and liabilities is what is known as a working capital. Working capital loan is vital to finance a small business’s day to day expenses and operations. This type of loan is not really used to purchase long-term assets or investments but it is used to fulfil the business unit’s short term operational requirements. This type of quick business loan is very useful for those MSMEs who generally experience and face ups and downs in terms of their business revenue.

3- Term loans

Terms loans prove to a business in situations when the business is in super need to purchase equipment, renovate the business unit’s space, or have an investment to make, and then this loan option is the best option. Term loans are often offered by banks, credit unions as well as online lender/NBFCs like Ziploan. Going ahead with term loan from Ziploan is a great solution and it also proves to be beneficial in the long run as has already benefitted the existing customers. Ziploan offer speed, convenience, and also provides flexible eligibility conditions, which are easy to meet. One can choose to repay the loan amount as per the comfort – between 12-36 months.

4- Collateral free loans

Collateral-free or unsecured business loans are very useful to MSME businesses as they do not require the business owner to provide a business or personal asset as a collateral against the business loan. MSMEs can apply for collateral free loans and get the financial assistance to fulfil the business needs. Unsecured business loans can be availed for various purposes, like taking care of day to day operations, and cash flow requirements, purchase of new machinery and inventory, and even in case of business expansion.

5- Capital loans

Even once the business is very well established, the owner might have further expansion plans. While funds are needed to grow and expand, and once all the cash reserves on building the company is been spent, the business owner may have a very little of it left. Under such kind of circumstances, the owner can opt for a capital loan to meet the financial needs and grow and expand the business operations. Capital loan can be availed for a long-term, and the loan repayment tenure can vary from lender to lender.

Lastly, above can be the 5 situations when as a business owner, a requirement of business loan from Ziploan may seem unavoidable. Ziploan is an RBI registered NBFC and is always ready to assist its customers to provide a smooth and a seamless experience while availing a business loan.