If you are a small and medium business owner, you would know what a chore it can be to secure a business loan. Apart from the general problem of securing business finance, SME owners also face exploitative interest rates, unfeasible loan repayment schedules, and high prepayment penalties. This in turn reduces their trust in institutional finance. However, in recent times, the business lending scene has seen a transformation owing to FinTech. It is a relatively new form of business finance which focuses on speed, efficiency, and ease of getting business loans. FinTech finance is offered by non-banking financial companies like Lendingkart and remains one of the fastest ways to get a business loan today.
But as things stand, most borrowers are still worried more by the interest rates on business loans rather than the associated problems in securing them from a traditional lender. While NBFCs like Lendingkart do offer lower interest rates on business loans, there is an internal and external component to determining interest rates which cannot be overlooked by any marketplace lender. In this post, we will have a look at the top factors that have an effect on your business loans interest rate and how you can tweak some them to lower the amount of interest you pay.
So, that’s that. Interest rates are one of the most important aspect of getting a business loan as lower interest rates help you in growth and higher interest rates may lead to a vicious debt cycle. Therefore, we advise that you analyze all internal and external factors that affect your business loan interest rates before applying for one. To know more about FinTech business loans, visit us at https://www.lendingkart.com/
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