Reasons to stick with unsecured business loans

    Introduction

    Because of limited capital, small-scale enterprises constantly seek funding. As a result, they often turn to financial institutions such as Banks and Non-Banking Financial Companies to ask for business finance. However, they get disillusioned most of the time. Providing loans to small-scale ventures tends to be associated with more risk for banks and NBFCS since they do not see them as profitable making repayment expectations unrealistic. 

    An unsecured business loan is defined as a business loan that is not secured with collateral, in which the loan approval and amount is based on the creditworthiness of the business borrower alone, usually through considerations on income, financial documents among other factors. This could be for company growth, purchase of equipment, stocking up of inventory, managing cash flow, among other things. In addition, most of the time, small business owners will be looking to acquire a small business loan which is seen by the lenders as an unreturnable investment.

    Reasons Why Unsecured Loans Facilitate Faster Growth for Small Businesses:

    1. NO COLLATERAL:

    Such type of financing does not require the pledging of any personal or business assets. Instead, lenders base the loan amount on the repayment capacity of the borrower’s business earnings and assess your Business Loan qualification. If your salary is high enough, the loan amount will be high too.

    2. EASY APPLICATION PROCESS:

    It is now possible for prospective borrowers to obtain a business loan more conveniently at Chintamani Finlease. Instead, information on how to get an unsecured business loan can now be found on our websites in your office or home. The site is very simple to navigate and there are web guides on how to apply for a business loan. Provided is a link to Our Site.

    3. MINIMAL DOCUMENTATION:

    A little documentation is crucial when applying for an unsecured business loan. In order to obtain an apparent vintage record of your business, it would suffice to only submit scanned copies of your ID, address and business proof, bank statements, and other related financial documents.

    4. FIRST-TIME APPLICANTS:

    There can be no better way of building one’s credit than the one explained below if you happen to be a first-time borrower with zero debt background. However, make sure that you stick on the schedule of paying your EMIs to prevent any default from arising. This is useful, just in case you want to borrow money related to a big business undertaking so that you have your credit history to support your request.

    5. FLEXIBLE USAGE:

    State the reason for which the loan is sought when applying for any business finance. This means that if you say for business expansion which is expansion of business affairs, that fund can only be utilized for such purpose. This also means that the amount borrowed cannot be used in any other way. Although when you are using any Chintamani Finlease or DSA to obtain an unsecured loan, the funds that you acquire can be used in any manner that you please. You are free to spend the money on advertising or on growing your business as you wish.

    6. ONLINE ACCESS TO FUND:

    The majority of the unrestricted loan requests made to most FinTech companies can be done and submitted within the on-the-go mobile application. In addition, the appropriate documents such as bank statements, previous loans statements, tax returns, commercial invoices and KYC documents must also be submitted electronically.

    7. NO RISK TO BUSINESS ASSETS:

    A borrower does not necessarily have to provide collateral in order to qualify for a loan of this type. This ensures the safety of business owned resources including commercial real estate, automobiles, stock, or even the equipment. In such a case, even if for some reason you are unable to settle your EMIs in full on time, the lender will not seize any assets belonging to the business. In that case, one can visit the Chintamani Finlease website and opt for any of the multiple repayment options available.

    8. NO SHARED OWNERSHIP:

    These investors, otherwise known as angel investors, may require that their investment contributions be paid back with some percentage of the company’s profits. For this reason, and especially for companies looking to avoid debt, financing is frequently sought that leads to the loss of complete ownership of the business. On the other hand, when you go for commercial lending, there is no tension on handing over part or total ownership. Any gains that an entrepreneur is able to achieve using their business loan would be their sole right. The lender does not have any rights over the profits that the business owner makes from the use of the loan.

    9. TIMELY ACCESS TO THE FUND:

    It is worth emphasizing that the main advantage of the family business unsecured loan application to Chintamani Finlease is that there is easy and fast processing of loan applications.

    On the other hand, a longer period is needed because a lot of papers are introduced into the system when one approaches for a business loan from a bank or within a non-banking financial company. Alongside, the loan is predicated on collateral and a third-party endorsement, thus further complicating the process by increasing the number of documents. In contrast, for Chintamani Finlease uninhibited loans, the processing takes a relatively short time owing to the fact that most of the process is online thus cutting off time for the borrower and the lender.

    10. SHORTER LOAN TENURE AND FLEXIBLE REPAYMENT OPTIONS:

    In most scenarios, the unsecured business loan is availed by the majority of the lenders as a short-term loan. Unsecured loan term is usually from 12 months to 60 months. This gives an option to the entrepreneurs of not paying high-value long-term EMIs for repayments of loans. This shorter loan also allows the borrowers to sustain a positive cash flow position with ease. Chintamani Finlease allows you complete freedom on the ways you want to repay your loan.

    Eligibility criteria:

    Different suppliers’ qualifying conditions for an unsecured business loan differ but the undertones remain the same. If you would like to apply for a Chintamani Finlease Business Loan, the following must be the case about you.

    1. The company should be located in Delhi.
    2. The age of the borrower must be 22 years to 55 years.
    3. The company should not be less than three years in operation.
    4. Prior two years, the business should have filed income tax returns.                                                                                                                                          

    Conclusion

    In Conclusion, Chintamani Finlease will strengthen the position of small and medium sized enterprises thanks to the availability of unsecured small business loans. They do not ask for any collateral, have a simple application process involving few documents, and do not discriminate against inexperienced applicants. They allow customers to use the money in a way of their convenience and provide the money in time without taking any risks on the business’s assets or ownership. These types of loans will need short-term payment of the loans and offer easy repayment terms in terms of schedules, which is good for most businesses. The requirements are simple, making it open to any businesses found in Delhi with at least three years of establishment. All in all, unsecured loans from Chintamani Finlease fast-tracks business expansion and enhances economic security.

    If you have any further questions, please don't hesitate to contact us:

    216, Ansal Vikas Deep Building, Laxmi Nagar District Centre,

    Near Nirman Vihar Metro Station, Delhi, 110092.

    Phone: (+91) 9212132955

    Email: info@chintamanifinlease.com

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