Every business needs investment. A business proposition without finance is merely an idea. Every year, thousands of budding entrepreneurs start new companies. Though the niche they operate in might be different, these people need one thing in common – financing. Not just at an initial stage but even at the peak, finance plays a vital role in the functioning of a company. Be it a small or mid-sized business; there are several ways through which you can get Business Financing.

Among various ways to finance your business, there are two prominent ones - debt or equity. Debt is where a loan or line of credit comes into play. Herein you borrow a certain amount of money and then repay it within a period. For that amount, you might and might not have to submit any collateral depending upon the pre-requisite set by the financial institution. Equity is where you sell a part of your business, and the new owner gets a share of your business and its profits – in return you get the desired funding.

Which financing option should you prefer?

If you are an individual who has worked enormously to chalk out some plan and want the entire credit to your name, debt is the only option you will prefer. However, if you are a person who wants to grow your business regardless of percentage sharing, you can opt for equity investments.

Now, depending on the size of your business you can take a call as well. When we are talking large scale business, equity is favourable. However, for small and medium-sized enterprises, debt is the best way to get started.

What should you know about business loans?

Various lenders offer debt financing or business loan throughout the country. When you opt for a business loan, there are several options in your hands such as:

• Borrow from a bank

• Borrow from an NBFC

People for ages have been relying on the bank to provide them with loans. However, among the four options mentioned above, the second option is the most favourable one. It is mainly because, in recent times, the growth of Non-Banking Financial Companies (NBFCs), like Bajaj Finserv, and their meteoric rise regarding support and trust has led to a shift in paradigm.

NBFCs like Bajaj Finserv offer many benefits to their customers. These benefits come in the form of:

• Higher loan amount: NBFCs such as Bajaj Finserv offer loan amount of up to INR 30 Lakh for small business financing, which is higher than that offered by many banks.

• Attractive interest rate: NBFCs like Bajaj Finserv offer a better interest rate as compared to other institutions. The rate of interest is attractive and quite favourable when it comes to repayment.

• Flexible repayment option: Repayment flexibility is important for a borrower as it determines the financial stress that he/she will be under when it comes to repaying the business finance he/she receives. Bajaj Finserv offers flexible repayment options and tenors to cater to the needs of business owners.

• Quick disbursement: Bajaj Finserv offer disbursement in 48 hours. It is one of the quickest quickest among all the NBFCs in India.

• No Collateral: Majority of the financial institutions will ask you to submit a collateral against the amount you borrow, but that is not the case with Bajaj Finserv. 

• Line of Credit: An additional support provided to the borrower to help him/her fulfil the basic needs, this is a credit line from which you can withdraw funds as many times as you need them. Interest is charged only on the amount you withdraw, and you pay only interest as EMI. The principal amount borrowed can be repaid at the end of the loan tenor.

To get a Business Loan from Bajaj Finserv, all you have to do is visit their website, fill out the online application form, and submit your documents with their representative. Your loan will get approved within 24 hours, and disbursed in 48 hours.

Also Read: Guide to Mastering Small Business Finances