Short term unsecured business loans are what every small business seeks to expand their premise, grow their team, purchase or upgrade pieces of equipment, increase and improve stocks or reach out to more customers through marketing. Digital lenders like Indifi are providing such fast short term business loans to small businesses without lengthy processing and documentation.
Short term business loans in India have several benefits- no collateral needed, reusable credit, unrestricted financing, quicker disbursal, shorter deadlines, added revenue, business growth, easier access to funding and achievement of goals. Borrowers can use the lend money to expand their business significantly. The money can be used to expand the business operations, perform recruitment drive or marketing.
Reasons to consider short term loans are:
1. Short term loans are unsecured
The best advantage of short term loans is the fact that no collateral is required and hence these loans are unsecured. They are usually for smaller sums and borrowed for a short duration of time. One can get these loans without having to put any asset or property as collateral security. This gives flexibility to the business to return the loan amount and also there is no fear of losing anything in case of bankruptcy. However, the decision to give these short term loans in India is made on account of factors such as your credit score and business continuity.
2. Short term loans are available quickly
Digital lenders like Indifi are providing short term loans very quickly. These loans can be borrowed fast. The eligibility criteria for these loans is transparent and the documentation process is really smooth. This means that one can get these loans fast– sometimes even on the same day or within 24 hours. This is highly useful for the businessmen who are in a crunch situation and require cash in hand to meet the needs of the business.
3. There is no long term commitment to this type of loan
Short term loans are usually provided for shorter duration and thus borrower needs to focus on the immediate future as the loan is paid off within a much shorter span of time. Long term loans are usually very daunting and many people fear to commit to borrowing for a period of many years which makes the repayment and management of loan hassle some. With short term loans, this is not a concern as it gives you the flexibility to pay as per your pocket.
4. Short term loans could cost less
It is simple mathematics that the longer you borrow for, the more interest amount you will pay. In contrast, short term loans are easier on the pocket as they offer a simple way to borrow the cash which is required and pay less for it- as the shorter the term for which the amount is borrowed, the lesser interest you are liable to pay. Digital lenders like Indifi are offering short term loans for as low as 1.5 % per month interest rate which can be a boon to many SMEs.
However, it must always be kept in mind that you should only borrow the amount which you can repay, thereby avoiding the risk to your assets or property in case of secured long term loans.
5. You can use short term loans for anything
Short term loans may be used for any aspect of the business. With these loans available quickly and cash disbursed quickly, they can be used on payday, for carrying out recruitment drive, for stocking, or for marketing purpose.
6. Easy eligibility criteria
Short term loans are highly flexible and have easy eligibility criteria for giving loans. The digital lenders like Indifi check in your credit score and undertake KYC documents for giving loans. The other documents are also not complex and thus the processing is also comparatively easy and quicker. The repayment is flexible through small monthly instalments.
Short term loans have no strings attached and are an excellent way of incurring extra cash for business without any collateral requirement.