Types of Business Loan

Here are the different types of business loan available for our customers:

Term Loan

One of the most common types of business finance is a term loan. The loan could be secured or unsecured in nature. The amount available depends on the business’s credit history. This type of loans are taken for a specific purpose, generally for capital expenditure.

Start-up Loan

A start-up loan is for new business ventures. Applicants for such loans may not have a great credit history on their company due to a lack of business vintage. Hence, the business should be established, and the applicant must submit proof of the business existence and registration

Working Capital Loan

Working capital loans are types of small business loans taken to overcome the shortage of cash to operate a business on a day-to-day basis. It generates balance in cash flow to run a business. It helps to meet the shortfall of cash during off-season or meet demand during a peak season.

Invoice Financing

Invoice financing is also known as invoice discounting or invoice factoring. This type of funding is especially for small businesses that encounter a time lag between raising invoices and receiving payment from the clients.

Equipment Financing

It is the manufacturing businesses that usually opt for equipment financing or machinery loan. Manufacturing units require costly equipment for the operation of their business and to purchase machinery it is most preferred among others.

Business Loan for Women

The government of India has initiatives in place to encourage women in establishing small to medium-sized businesses. The advantage of specialized loans for women entrepreneurs includes various types of loans and benefits too.