Additional funding is necessary to fulfil business milestones that could aid in scaling up your business. Some of the common sources of funding to boost your business includes borrowing family, friends or credit cards. However, these fundraising avenues may, at times, fall short in providing the adequate capital required to grow your business. Availing a business loan from reliable lenders at low-interest rates could be a hassle-free route for business expansion. Here’s how you could boost your business this year by availing a business loan conveniently.

Why opt for a Business Loan?

The primary advantage of opting for a business loan is to retain control over your business without having to sacrifice any future stake in it to the lender. If you get an investor on board, they will expect a return on the profits your business makes. That’s not the case with a business loan. Here, you pay back a fixed sum to the lender, i.e., the principal and the interest amounts remain unchanged, no matter how well your business does as a result of the financial support. Also, repaying a loan improves your firm’s credit score, making future borrowing cheaper. Also, you could customize the terms of loan repayment as per your business needs.

Some other reasons to avail a business loan are explained below:

Surplus cash for emergency expenses

Despite meticulous planning, a chance of unexpected expenses can always occur. Instead of hitting a dead-end, financing via business loans assures some sort of flexibility to execute the business growth strategy as planned. With surplus cash in hand, covering emergency expenses without abandoning or reconsidering the business strategy is quite possible.

Working Capital Support

You can use the business loan money to increase your working capital, which can be a big help if you have a liquidity crunch. You can run daily operations and cover short-term expenses without having to dip into the emergency fund.

Expanding/Renovating Office Space

Office space is the first impression of a business to its clients. Expanding or renovating office space can add a much-needed facelift to your existing office and ensure business growth. However, office renovation is a complex task that requires detailed planning and sufficient capital. A business loan obtained at a low interest could provide you with the short-term funds needed to renovate your existing office without upsetting your cash flows. Thus, applying for a collateral-free business loan through a reliable online platform or the nearest physical branch of HDB Financial Services shall ensure hassle-free documentation, quick processing, and speedy disbursal of the loan amount of upto Rs.30 lakhs at low-interest rates repayable within a flexible tenure of 1 to 4 years

Source: https://www.national.biz/small-business-financing-accelerate-growth/