Funds act as fuel for a business, whether it be a small business, a startup or a big enterprise, capital is equally important for all. However, not all loans are equal. Some of them have stringent credit history and documentation demands, while some have high-interest rates. Some are government-guaranteed schemes or long-term loans that are granted at lower rates without collateral. However, amongst all the options some business requirements are urgent and require quick funding. In this blog, we will be talking about some of those options which provide fast business loans for your business.
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Peer-to-Peer (P2P) Loans
Peer-to-peer lending is a rapidly growing platform, largely because it cuts out the middleman. However, these loans tend to also have higher interest rates and are more favourable for those who need urgent funding. The peer-to-peer lending marketplace works through online platforms, which connect borrowers and lenders.
Each P2P loan is often divided among several investors, spreading the risk. For instance, somebody who needs to borrow money goes to a P2P company. The upswing of P2P platforms is that the process is simple as compared to the process of going to a bank. It’s a very streamlined process that is done entirely online.
Micro Loan
If you own a small business and are looking for funds to support your business, then a microloan can do it well. The loan comes at a low interest and for short-term which makes it ideal for a start-up and small businesses. Microloans are nonprofit sharing funding options that work the same as a conventional business loan. You are free to use business loans available as per your requirements, but your lenders can ask you for your business plan to ensure loan repayment.
Business Line of Credit
Business lines of credit operate like a credit card and you can repeatedly use your line of credit as per your requirement and convenience without reapplying for a new loan each time. The upper limit allotted to you generally depends on your profile, business scale and repayment capacity. You can borrow up to that amount and repay it, as long as you don’t go over your maximum and make the minimum payments. Same as credit cards, you’re charged a monthly interest on the amount you use.
- Quick funding is available as it takes less time to get approved.
- Better than a credit card as the interest rate charged is comparatively lower than credit cards.
- It can be used the same as credit cards and one can borrow as per their requirement.
- Interest is only charged on the money you use.
The line of credit is flexible in terms of what you can spend it on. The documentation you’ll need is your personal and business tax returns, bank account statement, business profit-and-loss statements and a balance sheet and business license documents.
Also Read:- How Working Capital Loan Works for Your Business
Oxyzo’s Smart Financing Options
Oxyzo’s unsecured working capital credit is best for businesses in India. The capital or the fund granted can be used to manage working capital requirements and procure raw materials for business requirements. The best part about Oxyzo compared to other business loans is that it is easily available and the process is fast and simple. The complete documentation and submission process is available online, which makes it easy for businesses to apply for credit from any part of India. Also, Oxyzo offers credit without any collateral and with minimal documentation. Check the eligibility, upload documents, get approved, and get the funds faster and easily.
