All About Business Loans
A business loan is an indispensable aspect of collecting funds for a startup. Setting up a business requires a reasonable amount of funds, from putting up the inventory to making up for the losses and providing salaries. Entrepreneurs must utilize their resources in the most practical way possible, but still, they can fall short of these resources and feel the need for auxiliary funds. These funds can be procured in the form of business loans.
However, securing these loans may not be as easy as you think. You would need to
appositely elucidate your business idea and validate your potential in front of the investors. The banks may provide you with business loans directly, keeping in mind the schemes and policies of the government for empowering entrepreneurs to start up their businesses. Business loans are advantageous for an entrepreneur to establish their businesses. Here are some of those objectives for securing a business loan.
- Commencing a small business.
- Lower interest rates.
- Expanding your small business.
- saving Taxes.
1. Commencing a small business.
Small business owners require sufficient funds to set up their brand to enable them to make the necessary transactions needed to commence their business. It may include purchasing the appropriate machinery, hiring competent labour, and renting a desirable location.
2. Lower interest rates.
Business loans are often attainable for entrepreneurs at lower interest rates, as low as 6-7% from the banks compared to individual or private firms that charge distinguished interest amounts on their business loans. The government-backed self-employment schemes such as MSME Business loan for startups and Start up India scheme further promote lowering the interest rates of loans taken from banks and other financial institutions.
3. Expanding Your Small business.
The primary aim of a small business is to expand its potential and build a stable customer base. These aspects may require extensive funding, which business loans can fulfil. Funds from a business loan can encourage the entrepreneur to grow their business exponentially by procuring more inventory, facilitating faster delivery of their products and employing additional labour.
4. Tax purposes.
Business loans for an entrepreneur help them to demand rebates and deductions from income tax following article 80 of the income tax act. This will further enable the entrepreneur to save considerable money on tax payments and repay the business loan amount handily.
As an entrepreneur, you wouldn’t need to worry about funds for establishing a small business. Taking hold of business loans can be relatively beneficial if you’re confident in your business idea and implement ethical business strategies. Since you’ve reached this far, you would’ve understood the advantages of taking business loans.
You’re on the right page if you’re an entrepreneur looking for a platform to commence your online business. Growcify, is a Saas-based company providing online platforms providing website or mobile applications to entrepreneurs without requiring them to perform even a single line of code. You can learn more about our company on Growcify’s official website.