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FEATURES AND BENEFITS OF CORPORATE LOANS
The age-old saying ‘money makes more money’ still stands true. Every business needs investment to grow. While running a business, you will need funds for so many things like advanced equipment, hiring staff etc. Where you are going to use that money depends on the type and requirements of your business. When you try to shape your business idea and turn it into reality, you will require a lot of things like raw material, manpower, infrastructure etc. And to arrange these things you will need money. Now the question is, ‘where do you get the money?’. This is when the term ‘corporate financing’ comes into the picture.
By taking a corporate loan, you can arrange sufficient funds to make your business grow. You will have multiple financing options if you want to take a startup loan for a new business. If you are a female business owner then things can get easier for you as there are a few schemes under which you can get special interest rates on business loans for women. In simple words, a corporate loan is a financing solution that specifically meets the requirements of business owners.
Let’s dive deeper and discuss the features and benefits of corporate financing:
- Quick Disbursal:
Not being able to work on things while waiting for funds is the last thing any business owner would ever want. When you apply for a business loan to expand your company, it gets disbursed as a top priority. This way you will not have to halt your business operations.
- Less Documentation:
Another benefit of going through the corporate financing route is, the process requires minimal documentation. Less paperwork means your loan will take less time to get processed.
- Better Interest Rates:
The interest rates you get on a corp loan are very reasonable. So you will not have to worry about repaying the loan with huge interest amounts. These interest rates can vary from one customer to another spending on factors like tenure, the purpose of the loan, customer’s creditworthiness etc.
- Flexible Tenure:
You might need different funds at different stages of your business. This also applies to the amount of time you will apply a loan for. For example, if you want to meet your working capital expenses then the fund requirement will be different and if you need to work on a specific growth plan then it will be completely different. You can choose the tenure of your loan according to your convenience.
- Flexibility for Usage:
Your financier will not interfere with your usage of funds. You can use the loan amount the way you want to. The only thing they are concerned with is timely repayments. So you will have full control over how to spend the funds.
- No Profit Sharing:
When you reach out to an investor, he/she will provide the funds but is going to expect returns on the profit your business will make. You will have to share from the overall profit. But when you take a loan, the only thing you will have to worry about is repaying that amount with interest. Once you are done repaying, you will not have to pay a single penny.
- Multiple Loan Options:
There are different schemes for different types of corporate loans. You can apply for a specific type of loan according to your business requirement.
- No Collateral Required:
If you meet the specific eligibility criteria then you can apply for a loan without offering any collateral. If you are starting a small-scale business then getting a loan with any collateral can be a big advantage for you.
- Tax Benefits:
Generally, the interest you pay on a business loan is tax-deductible. This allows you to take tax benefits on your loan.
Every company needs money to run its business operations smoothly and increase overall profitability. A business also needs funds to maintain the cash flow. There are multiple options to meet the financial needs for the growth of your business, corporate financing being the best one.
Wondering how to apply for a business loan online? At Muthoot Finance, we have multiple corporate loan schemes. Our team of finance experts will help you to process the loan application and make sure you get your funds as quickly as possible. Visit the nearest Muthoot Finance branch for more queries.