Having enough of capital for your business is the number one priority for every entrepreneur. If your business needs excess money which is not readily available, a Business Loan can be your best option. Most entrepreneurs believe that their only chance of getting a Business Loan is from a bank and if that gets rejected, they would not be able to get the capital. However, today there is a loan for every need and all you would have to do is to find the right type of loan for your business. It is essential that you first carry out all the required research before you apply for a Business Loan. If you are a startup and need the extra investment or if you have an already established business but what to expand or open a new branch there are specific loans for you. Lucky for you we at www.mymoneymantra.com have an extensive list of all the kinds of Business Loans available to you right here.

If you are an already established business

You have already been able to build your business from the ground up and are now looking skywards to expand your company. At this time the most common loans that you would be able to choose are

• Term Loans: This is a kind of lump sum amount that you have to pay back to banks along with interest in a certain amount of time. You can get a low-interest Business Loan for a long term from the banks or a Non-Banking Financial Company (NBFCs).
• Short-term loans: This kind of loan is like a term loan but the period in which you need to pay back this loan is shorter. Although these loans can’t usually be found in banks, many alternative lenders would be able to give you loans that have a term period of around 3 to 18 months.
• Lines of credit: A line of credit helps you dip into the resources whenever you need little excess money for your business.
• Equipment financing: This is a kind of secured loan that would cover up to 100% of the cost of the equipment that you need to buy for your company. The best part of this kind of loan is that the hardware itself is kept as collateral, so it is much easier to get approval.
• Invoice financing: Most invoice financing companies offer this kind of loan. It is fast cash that can be acquired by the outstanding invoice of your business. They would usually advance you 85% of the total invoice cost and can also charge you a nominal fee for every week that the invoice is not paid.
• Cash advances for merchants: This is the kind of credit in which you would get fast cash when you need it and can pay back the loan with a portion of the daily credit or debit card sales. This option is suitable for those companies that do not have a good credit score, but it is also considered the most expensive loan you can avail.
• Business Credit Cards: Although this may not be a small business loan you can still use your Credit Card to finance your business. You should separate the business credit from your personal credit. This would also help you earn rewards or cash back on the purchases that you make.

Also Read: How to Get the Lowest Interest Rate Business Loan

If you are a startup

This is a kind of loan for those who are just starting out with their dream business but do not have enough capital. There are three main types of Business Loans that you can apply for:

• Credit line builder: this is a new and innovative type of financing product. It is a little more difficult to explain as compared to other products. It is a specialized loan for startups where they are given a line of credit using various kinds of credit cards. You can draw cash from these cards but for a small fee. It is imperative that you understand this kind of scheme before you apply for this kind of loan.
• Startup equipment financing: this kind has been explained above. However, there is a particular kind of loan that can be used for a startup where you would need to have a good credit score, and the amount is usually lower than the loan for an established business.
• Personal Loans for business: this loan would be given to you by your credit score. To qualify you would need to have a credit score of above 700. As this loan is provided to you as an individual, you would need to take the responsibility of paying back the loan, but there is no restriction as to how you use the money.

Government Business Loans

The government is supporting more businesses in India, and hence there are schemes such as entrepreneur loans that help you get loans at low-interest rates.

Loans for Women Entrepreneurs

There are also special schemes to encourage more women to start businesses and become more independent.

Now that you know the kinds of loans available and have chosen the best one for your business you can also Apply for a Business Loan Online through MyMoneyMantra, which is a simple procedure, and most institutes send their representatives to your doorstep to pick up your documents.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.