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Fincash » Business Loan » Top Ways to Get Quick Business Loan

Top 4 Ways to Get Quick Business Loans

Updated on April 22, 2024 , 2500 views

Business loans are one of the best options to finance all business-related needs. Sometimes, finances become important when the business need is urgent, and therefore, you might need quick credits for working Capital or to buy an important asset.

Top 4 Ways to Get Quick Business Loans

There are different types of business loans available today for almost every need. It is important to know your options when you want to opt for one. Ideally, a Bank Offering flexible repayment terms and an affordable rate of interest, is what people prefer.

Fast business loans are available for those who have an established business and want to fund certain needs. Read on to know how to get a business loan fast approval to fund your business needs.

Best Ways to Get Quick Business Funding

1. Unsecured Loan

One of the most popular loans that you can avail in a short span of time is an unsecured loan. It is called unsecured because there is no need for a Collateral or third party guarantor. This loan is granted purely based on the financial statements of your business. Banks also require other Personal Finance documents like Income Tax Returns, bank statements and other similar documents.

Please note that the rate of interest is usually 1% - 2% higher than secured loans.

2. Line of Credit

Various businesses have been taking up a line of credit and have an option to fund their working capital needs. It is an arrangement between a bank and the borrower. They establish a maximum loan amount for borrowing.

You can access funds from the line of credit at any time as long as they do not exceed the maximum amount set in the agreement. This is a good option to meet urgent and timely payments.

Remember that line of credit is an open-end credit account that allows you to spend the money, repay it and spend it again.

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3. Working Capital Loan

Working capital loans are a popular option in the business circle. It allows you to fund your working capital needs with convenience. This loan is not borrowed to buy long-term assets or investments. They are used to provide capital for a business’ operational needs. This could include payroll, rent and debt payments.

Remember, it is important to pay back this loan on time. If not adhered to, your personal Credit Score can be affected.

4. Loan Against Property

One of the quick ways of getting a business loan is to opt for loan against property. You can get this loan by keeping your commercial or residential property as collateral. It is also called a secured loan. Your property value will decide the amount of loan you can get sanctioned.

Leading financial institutions generally sanction these loans soon for approximately 65% of the value of your property. Banks also offer flexible loan repayment tenure - the maximum would be up to 15 years. However, this depends on the discretion of the bank.

Eligibility for Getting Quick Business Loans

1. Valid Business Registration

You should have a valid business registration to avail the loan.

2. Business Existence

You should have proof that your business has existed for over three years.

Common Documents Required for Business Loan

While every bank has its own set of requirements when it comes to documents, some are a common requirement. They are mentioned below:

1. Identity Proof

2. Address Proof

  • Aadhar Card
  • Passport
  • Voter’s ID Card
  • Driving License

3. Income Proof

  • Bank statement of previous 6 months
  • Latest ITR along with computation of Income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
  • Other Mandatory Documents

Conclusion

Availing quick business loans should be done with utmost caution. Every bank has its own set of terms and conditions when it comes to loans. It is important to understand your need and then search for a loan that meets those need. Do your research about the bank and throughly read all their loan-specific offerings.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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