How Startup Business Loans Can Help You?

Are you planning to start a new business and be your own boss? If yes, you must do detailed financial planning to run your business without disruptions or hassles. A strong financial base is essential for any business to succeed. At least one-third of Indian startups fail within a year, often due to a lack of sufficient funding.  

To ensure your business has a continuous supply of funds for day-to-day activities, you can opt for startup business loans. With the advent of technology, access to these loans is now easier than ever. According to a recent survey, at least 70% of businesses with less than two years of experience use new business loans to grow and expand. 

If you are still wondering how a startup business loan can help you, this blog is for you. It will walk you through the multiple benefits you can enjoy by applying for these startup loans.

Advantages of startup business loans

A startup business loan can help entrepreneurs turn an innovative idea into reality. It can provide the following benefits to the borrower:

Easier to access

If you are a small business owner, you might not have sufficient credit history or credibility to qualify for traditional bank loans.  Even if you do, procuring traditional business loans is a tedious process and takes time. 

This is where new small business loans can help you to a great extent. Startup business loans are accessible with much less effort compared to business loans from large banks. These loans require minimal documentation and can be processed quickly. In most cases, these loans are disbursed to your account within 24 to 48 hours from the time of application. 

If you need urgent financial assistance for buying new machinery, adding inventory, etc., you can apply for these loans and continue with your operations as usual.

Increased liquidity

You can carry out your regular operations without any disturbances only when you maintain sufficient liquidity. The funds used for routine operations like electricity, salaries, rent, etc., must always be adequate. Most businesses, especially smaller ones, shut down within a year or two due to dangerously low working capital and liquidity levels.

If this situation resonates with you, consider taking an MSME loan for a startup. These loans for micro, small and medium enterprises are of great help to small businesses. These loans are available for short-term, medium-term and long-term. These loans help small business owners easily meet urgent working capital needs, ensuring smooth operations. 

Flexibility of options

One of the key advantages of startup business loans is the flexibility they offer in terms of loan amount, repayment tenure and type of loan. If you have a good credit history or a high credit score, you can even negotiate for a lower interest rate with your lenders.

Depending on your requirements, you can choose from a variety of startup loans. If you need financial assistance to buy new or advanced machinery, you can opt for exclusive equipment financing loans. You can even sell out your outstanding invoices to a third party by using invoice factoring services. If you are looking for loans to fund regular operations, opt for working capital loans and so on. 

These loans have made financial assistance easily accessible, quicker and hassle-free than before. 

Conclusion

Startup business loans can immensely help if you want to set up your small business and continue operations smoothly. With these loans, you can update your inventory and invest in advanced machinery to increase productivity and gain an edge over your competitors.

If you are looking for affordable, quick and effective startup business loans, consider TallyCapital for all your needs. Check your eligibility and apply for a loan. TallyCapital has tie-ups with some reputed lenders in the market, such as, Kotak Mahindra Bank, FlexiLoans and L&T Finance. Once your loan application is approved, you will receive the funds in no time.

Read more: 8 Types of Different Business Loans – How to Find Your Ideal fit