Traditionally, it was difficult for small and medium-scale businesses in India, to avail funds for growing and expanding their business. If you were a small business owner, with no collateral or assets, then your chances of getting a loan at traditional lending institutions like banks were next to zero.
Many a business had failed because they weren’t able to secure the funds needed to grow their business at the right time. And, those businesses who borrowed from informal lenders had to pay significantly high interests that ate up a major chunk of their profits.
Enter the Era of Unsecured Business Loans
With the rise in FinTech, next-gen lending platforms like Indifi introduced a new type of business loan, aimed at MSME owners. These are just like regular business term loans, the one major difference being that they are unsecured. As a business owner, you don’t have to submit any collateral to avail these loans.
Many small businesses and startups in India benefit from these unsecured loans significantly. Let’s take a look at the top reasons, why unsecured business loans have become the default choice for business owners, who are looking to increase their funding.
Getting an Unsecured Business Loan is one of the Best Decisions You’ll Make for Your Business
1. Positive Working Capital
Having adequate working capital is a must for all businesses to run day-to-day operations smoothly. However, due to erratic customer payment schedules, outstanding bills, and other operational expenses, it’s difficult for small businesses to maintain positive cash flow.
Unsecured business loans act as a cash buffer, helping you meet your daily expenses like — paying salaries, stocking inventory, paying suppliers, rents, and more — with ease. Thus, with an unsecured business loan, you can focus on long-term growth, instead of being burdened by short-term fund requirements.
2. Helps to Fuel Growth
If you wish to take your business to the next level, expand beyond current markets, and launch new products — you require funds. With an unsecured business loan at your side, you can take the leap of confidence and make the best use of all growth opportunities that come your way.
3. Flexibility for Usage of Funds
One of the biggest drawbacks with traditional bank loans is that you couldn’t use the funds according to your preferences. Most banks require you to submit detailed business expansion proposal plans before you can secure the funds.
With an unsecured business loan, you can use the funds for any purpose. Most digital lenders don’t even ask you for what you intend to use the funds for. Whether you are using it to hire additional staff, expand your business premises, or for R&D purposes, or whatever reason — the choice is completely up to you.
4. Borrow with Bad Credit and Boost your Credit Rating
Yes, you are eligible for unsecured business loans from Indifi, even when you have a poor credit score. Lenders look at the profitability of your business, and not your credit history. This is a huge boon for small business owners, who have poor or zero credit scores.
Alternatively, if you are looking to boost the credit ratings of your business, then availing a term business loan from Indifi is a great choice. Repaying the loan does wonders for sending your credit scores soaring upward. With a high credit score, you can enjoy lowered interest rates on other loans in the future.
Get Unsecured Business Loans at Terms that are Favourable to Your Business
At Indifi, we understand the challenges faced by small business owners in India. Hence, we have designed our unsecured business loans to work in your favour. Apart from zero collateral, our term loans for business come with added benefits like — quick processing, minimal documentation, quick availability of funds, high eligibility, flexible repayment and more.
Browse through our innovative unsecured business loan products and choose the perfect one that suits your specific business requirements.