Business loans are lending agreements established between business owners and financial institutions or private lenders. These loans provide funding to entrepreneurs and business owners to be used for investment or working capital purposes, aiding in the expansion and facilitation of various business activities. Business loans are available from a variety of sources, including banks and private organisations. However, it is important to note that business loans may differ from regular loans in terms of formalities, risks, and specific terms and conditions

Many private institutions provide funding through different business loans. Here are 6 common business loans provided for SMEs

In these methods, a business owner is granted the ability to withdraw funds up to a predetermined credit limit from their business account, regardless of the account balance. The excess amount withdrawn is treated as a form of credit, rather than a traditional business loan. The business owner must repay the borrowed funds, along with any applicable interest, by depositing the corresponding amount into the account.

Bank Overdraft/Credit Line

Unlike a loan, equity financing does not require repayment. Instead, investors receive ownership stakes in the company. In some cases, business owners may have the opportunity to repurchase the shares from the investors at a later stage, but it is not directly tied to completing the loan. This option, known as a buyback or equity repurchase, allows the business owners to regain full ownership of the shares by reimbursing the investors at an agreed-upon price.

Equity Funding

As the name suggests they have a shorter repayment period. These loans are provided as working capital and limited capital investment. These are convenient credit options for small and medium enterprises in India.

Short-term Loans

This is a popular method for improving cash flow and capital. It provides funding for the purchase of instruments. These business loans are secured by the equipment as they serve as collateral. The lender can procure the instrument in case of default.

Equipment Finance

These business loans provide short-term credits in exchange for account receivables. These loans are only available to SMEs with commercial customers. The loan tenure typically aligns with the invoice due date. For the loan closure full payment, including the interest and processing charges has to be paid.

Loan on Accounts Receivables

In this arrangement, a factoring company pays the business in advance for accounts receivable. Instead of a full amount a certain percentage of the invoice is paid first. The remaining amount is withheld for unforeseen changes. Both companies have to work on the factoring company for this business loan.

Factoring/Advances

A trade creditor refers to a supplier who has provided goods or services to a business but has yet to be paid.  While trade credit is a common practice, it is important to note that it is not typically considered a formal business loan. Rather, it is a form of short-term credit extended by the supplier to the business.

Trade Creditor

The EMI is nothing but a dividend of the loan amount that is repaired in fixed monthly payments. These repayments are beneficial for small and medium-size businesses. The Business Loan EMI calculation is done using the following formula:

E = P x r x (1+r)n/(1+r)n-1

• ‘E’ is the EMI
• ‘P’ represents the loan amount
• ‘r’ is the interest rate on a monthly basis 
• ‘n’ is the duration of the loan
•  

You can also use the online business EMI calculator. It’s quick and easy to use. It provides clear insights into the monthly EMIs.

AccountsWaale provides tailor-made business loans for small and medium businesses in India. We have a user-friendly digital interface that is highly simplified. The entire process of procuring a business loan can be completed in just 72 hours.

AccountsWaale offers business loans up to ₹2 – ₹75 lakhs for eligible SMEs. The processing is quite easy and can be completed within a short time span.

Loan Amount From ₹2 lakhs ₹50 Lakhs

Our team of business experts will cross-verify your documents and complete the processing quickly. There are no bank visits required.

Superfast Processing

Unlike traditional banks, we strive to provide business loans in the quickest turnaround time. Most of the loan documents are processed and provided in just 72 hours.

Quick Turnaround Time

Our unsecured business loans do not require any collateral. It helps you to upscale your business without putting your assets at risk.

No Collateral Required

We provide loan tenures from 12 months to 36 months, offering significant credit relief.

Extended Loan Tenure

We maintain transparency by ensuring zero hidden costs and charges. A one-time processing fee is charged.

Transparent Costs

AccountsWaale provides monthly EMI allowing you to easily repay the business loan. You can also opt for much more flexible repayments.

Flexible Repayments

 Here are the benefits of obtaining a business loan from AccountsWaale:

AccountsWaale processes business loans in just 72 hours and provides funding on time. This provides you greater leverage in taking time-sensitive business decisions

Faster Processing

Collateral-free business loans are provided quickly under AccountsWaale. You need not worry about liquidating your company ownership or losing your assets

Preserving Your Ownership

A business loan from AccountsWaale assures both capital and time. This will help you as a business owner to enhance your cash flow and achieve profitability. Timely funding will help you to achieve a balance between business funds and company capital.

Streamlining Your Cash Flow

Repaying a business loan on time is a definite way to boost your CIBIL score and business credit score. We make sure to report all the loan accounts to all the credit bureaus.

Improving Your Credit Score

The documents required for a business loan application include:

• Bank statement (12 months)
• Business registration proof
• PAN Card Copy
• Aadhar Card Copy
• Partnership Deed Copy
• Company PAN Card Copy

Apart from this, the following business registration proof is required: 

• Business Registration Certificate
• GST filing
• Gumastadhara
• Trade License
• Drug License
• TIN
• VAT registration

At AccountsWaale we make sure to reduce unnecessary paperwork and documentation. To be eligible for a business loan, you need to meet the following criteria:

Your business should have been in operation for at least 6 months

Established Business

Your business should have a minimum turnover of ₹5 lakhs or more than 6 months preceding your loan application

Minimum Turnover

Your business should not be on the blacklisted or excluded list for SBA finance

Exclusion Criteria

We provide business loans pan India.

Location Eligibility