To take care of daily expenditure To renovate the firm
- To fund the working capital
To expand your market
Business loans, on the other hand, are loans given to companies and other such entities to meet their day-to-day expenses, fund their working capital requirements and expansion, etc. They are also called as corporate loans. A couple of examples could include infrastructure finance, working capital finance, term loans, letter of credit etc.
These loans are an excellent way for businesses to focus on their growth and generate more revenue. Over the years, such loans have become popular in India amongst business owners and proprietorships as it helps them overcome short-term and long-term financial hurdles.
Corporate loans could be unsecured or secured in nature. Some businesses might require the unsecured loan that is based solely on the creditworthiness of the business. Some businesses, who have the requisite collateral to offer, might go for secured loans since the loan amount is larger than an unsecured corporate loan.
Both commercial and government lenders offer the corporate loan. You need to fulfill certain eligibility criteria in order to qualify for these kinds of loans. Corporate loans are generally offered to those who have their business established for at least 2–3 years and have a proven track of profit.
There are variety of loan offers that are available in the market. The greatest challenge, however, is to find the right loan product that will suit your business needs.
