Instant Business Loans for Startups: Jumpstarting Your Entrepreneurial Journey

To bring business ideas to life, capital is a quintessential element. Be it to jumpstart a great business plan or expand the existing one, having access to sufficient capital is a must. In cases of time-sensitive operations, an emergency or a need for immediate cash flow, one may look for instant business loans. Banks may not always be able to offer instant business loans due to extensive due diligence. In such times, people may resort to NBFCs (Non-Banking Financial Companies) for online business loans. Let's dig in

Types of Instant Business Loan

Before discussing how startup business loans can empower entrepreneurs and offer agility to a business, let's discuss the types of instant business loans available:

• Cash Credit 

Also termed as overdraft, cash credit can be a smart choice for beginners. You are charged interest only on the amount that you withdraw from the overdraft and not on the entire credit access.

• Loan Against FD

Fixed deposit lets you apply for a secured loan. Up to 80-85% of your fixed deposit amount, you can avail an instant business loan.

• Collateral-free Loans

A small business loan can be availed without any collateral, especially in the case of an instant loan. However, such a loan may have higher interest rates.

How Can Instant Business Loans Contribute to Your Entrepreneurial Journey?

Startup business loans can benefit your entrepreneurial journey in many ways. From saving equity sharing to offering a financial cushion, an instant business loan can be quite a smart decision. Let's understand how:

• Flexibility in Loan Management

Several instant business loans are flexible in nature. For instance, cash credit allows you to withdraw money as per your business requirements. The interest is charged only on the withdrawn amount, irrespective of the total loan approved.

For a blooming business, flexible loans not just offer a financial cushion but also the flexibility of repayment terms. Thus, a business can grow and expand without hard-to-meet deadline stress.

• Expand Gradually: Benefits of a Solid Plan

An instant business loan can only suffice your business needs when you have a solid business plan. Balancing the bulls and bears of an emerging business is possible with stringent planning and careful execution.

• Say No To Equity Sharing

Due to a lack of instant business loans, a growing business may have to shed equity against a loan or investment. However, when you have the required capital amount in the form of an instant business loan, you no longer have to let go of your business equity.

• Stability for Growth

Until a business reaches the breakeven point by covering its fixed and variable costs, constant cash flow is a must for business growth. To seize upcoming opportunities and manage the ongoing financial commitments of a business, seeking a business loan for small businesses can be a prudent choice.

• To Set Up Business

Starting a new business requires investment in software, equipment, manpower, raw materials, and so on. With an instant business loan, it becomes easier to cope with such high expenses.

To Sum Up

Entrepreneurs with good credit scores and credit history have a higher chance of getting small business loans at competitive interest rates. However, it may not be a mandatory clause for every lender. Instant business loans are the much-needed support for a new business. Right from start-up capital to the ability to seize the right growth opportunities, business loans for small businesses lets you execute your ideas the way you want!