When an SME has a rock-solid business development strategy but not adequate funds for execution, can apply for an SME business loan to lenders. There are many sources which offer a loan for SME in India. These sources incorporate public and private sector banks, NBFCs, and development banks.
The FinTech lenders known as NBFCs have become popular due to offering loans for MSME without collateral around the world. Indifi is one such FinTech lending institution which is recognized for offering flexible MSME loan online.
To find the best MSME loan for new business, you should consider 5 easy steps when you decide to approach a FinTech firm like Indifi for business funds. Prior to looking into those steps, let us first check out the different loans for MSME available in the market for SMEs offered by the online lenders.
SME Loan Products
- Term Loan – Term loans are offered to meet a business’ one-time capital requirements. Usually, businesses require money for maximizing their premises, buying or upgrading equipment, developing their team, enhancing and increasing stock or reaching out to more clients via marketing. Short-term unsecured business loans from Indifi can meet these needs the best possible way.
- Line of Credit – Overdraft facility or line of credit is the best option to increase cash flow. Usually, businesses require funds to access cash discounts by paying timely or upfront, increase credit to clients, fulfil seasonal demands or pay off vendors. Collateral-free line of credit loans from Indifi meet these needs the best possible way.
- Invoice Discounting – Invoice financing is an alternative to conventional business loans that offers immediate access to cash locked up in the outstanding invoices. You don’t require waiting to get paid by your customers. You can rather get money instantly against your invoices through Indifi’s invoice financing facility.
- Merchant Cash Advance – Merchant Cash Advance loan is the best funding option for businesses that accept card-based payments from clients. Indifi looks at the monthly debit or credit card receipts for deciding a borrower’s creditworthiness.
5 Steps to Get the Best Loan for Your Small Business
When a FinTech firm provides a customized lending solution for your business, you should find the best loan product. Here are 5 key steps to select the right SME business loan:
- Understand your needs – If your business has good credibility, you can borrow more funds than your requirement. You may want to reserve the extra funds for working capital. Nevertheless, it’s not the right plan. Don’t forget that increased loan amounts bring a bigger instalment to repay also. So, use a business loan EMI calculator to know the funds you can pay back and apply for the right amount of funds to meet your need.
- Check your MSME loan eligibility – Traditional lenders ask to pledge financial assets as collaterals but FinTech lenders provide unsecured loan for MSMEs. They check the borrower’s creditworthiness based on the business vintage, past loan history, revenue earnings, and business compliance with tax laws. You can check your MSME loan eligibility by referring to Indifi’s website.
- Compare loan rates – Don’t get immediately attracted to loans which advertise low-interest rates. Such loans may have hidden charges. At Indifi, we don’t charge any hidden cost or pre-processing loan fee.
- Provide all necessitous documents – To approve your loan application, a lender needs all your KYC documents, bank statements, the latest ITR copies, etc. Upload soft copies of these documents to complete your online loan application.
- Apply for the SME business loan – If you know your needs, loan eligibility, loan costs, and required documents, it’s high time to apply for an MSME loan. Make sure the lender has a secure site to encrypt your business and personal data.
At Indifi, we review all applications ASAP and you can disburse the money within 48 hours after getting approval. Follow the aforementioned steps to find the best loan for your needs from Indifi.