By Master James 
Every business – small, medium or large – requires capital to manage its operations. Whether it’s day-to-day operations, launching a new product, paying salaries or expanding presence in new markets, entrepreneurs require constant cash flow to manage the business efficiently. However, they may sometimes fall short of the required funds to keep the business running smoothly. Here, a small business loan can help you fulfil your needs. To make the process of taking the loan easier for you, we have answered some most commonly asked questions related to Small Bus
- Should I go for a business loan or not?
This is a question many businesses struggle with when facing a shortage of funds. Some have the option in easy installments for a tenure ranging from 12-36 months. While all these are great, you will lose out on the value of the asset. The benefits of a business loan allows you to keep your asset and pay the loan in easy installments. One of the biggest financial errors for businesses is taking out loans that are not required.
Many small businesses keep growing and registering profits year on year. Until and unless seeking expansion, such businesses manage without external finance. While such business owners can take loans based on their eligibility but may find it difficult to repay. Since loan interest is considered a business expense, not managing it properly can affect the finances and may reduce the profitability. So, take a business loan after assessing your needs.
2. What is the look on my credit?
All funding rests on the foundation of good credit. Ensure your credit profile is in the finest condition before applying for a business loan. You must ensure that the data in your credit report is correct. Avoid any actions that could harm your profile, such as skipping payments or making excessive credit requests.
3. Where should I take the loan from?
There are practically two ways you can take a small business loan to meet your financial needs – Offline and Online. Traditional financial institutions follow offline loan processing systems. This means you will have to visit their office to apply by filling in the manual application form and providing lots of documents. There can be more visits than one as the application goes through phases. On the other hand, online lending institutions like Clix Capital have made it easier for entrepreneurs to apply for a business loan from the comfort of their office or home using their laptop or smartphone.
The requirement for documentation is minimal, and processing is faster. A quick in-person verification is done before approval, and the amount is disbursed to the applicant’s account quickly. So the choice is yours.
4. What are the rates of interest?
Interest rates on unsecured business loans offered by Clix Capital are highly competitive. However, the interest rate offered to you will depend on various factors, including your credit score, existing debts, business vintage, annual turnover, repayment tenure, etc. If your eligibility matches the lending institution’s requirements, you can get the best interest rates in the market.
5. Can I afford this?
Every loan requires EMI payments, so your business’s cash flow must cover the EMI costs and the ongoing funding of its operations. You can use a business loan calculator, a free to use tool available on the Clix Capital website, to calculate your EMIs before applying. Knowing EMI amount beforehand can help you plan your loan repayment in a better way.
A small business loan can help you increase your company’s workforce, geographical reach, and production or acquisition of merchandise, all of which will boost profits. So, apply for a business loan after clearing all your doubts to take maximum mileage.