Difference between Working Capital and Startup Loans

Online Lenders – The Better Choice

Small businesses are increasingly moving towards online business loans and finance options for expanding their operations. Online lenders offer several benefits over financing from commercial banks, such as Flexi EMIs and quick short-ticket finance. This has made these non-banking financial institutions the choice of modern MSMEs.

For example, today, non-banking financial companies like Lendingkart Finance are disbursing working capital loans and unsecured business loans across the country whereas banks are limiting their commercial lending activities.

Here are the reasons why you should apply for a business loan from an NBFC –

Quick Turnaround Time

The one element that defines importance of finance is its timely availability. If you fail to get the requisite funds within the time frame available to you, either the opportunity will be lost or the same activity will cost you more.

Since a majority of small business owners are applying with them, banks take their own time in scrutinizing business loan applications. Thus, the process of loan approvals is slow. NBFCs, on the other hand, specifically cater to the MSME finance. Therefore, they are prompt in completing documentation, verification and disbursals.

E.g., Lendingkart Finance promises loan amount disbursal within 72 hours of documentation.

Completely Online Process

The reason why an NBFC like Lendingkart can approve loans faster is the online only loan application process of the company.

Every modern business has access to digital copies of requisite loan verification documents such as PAN, Aadhar Card, Bank Statements and ITR Certifications. An online lender can thus quickly verify the statutory status of your enterprise and disburse loans where traditional banks continue to struggle with filing and manual paperwork.

Minimal Documentation Required

In an online process, the lender can verify your business and personal information through government’s online portals, hence there is no need for excessive paperwork and documents to be submitted. For example, Lendingkart offers business loans by verifying only the essential documents for identity, address, incorporation and tax compliance of your enterprise.

Flexible Payments and More

The completely online business loan process allows lenders to cut costs associated with manual work, and they are more than happy to pass you the benefits. So, expect lower business loan interest rates, flexible EMI options and reduced processing charges when you get a business loan from an online lender like Lendingkart Finance.

If you are planning a business expansion soon or want to streamline your daily operations with a working capital loan, visit our website; www.lendingkart.com, and sign up for a quick quote.

Business Registration – Helping in Faster Loan Approvals

How Business Registration Helps in Faster Loan Approvals

When your business model is ready to move from its pilot phase, the first thing to do is to register your company. Business registration in India can be done online through the Ministry of Corporate Affairs portal. Apart from giving legality to your operations, there are numerous reasons why you should register your business.

Get Faster Loan Approvals

Business registration makes it easier to raise money through business loans and to get backing from investors. The lenders, such as banks and non-banking finance companies (NBFCs), are more trustful of a legally registered company or business. Hence, making it easier to get faster business loan approvals.

For example, if your company has been registered and is in business for more than 6 months, you can apply for a business loan from Lendingkart – one of the leading NBFCs in India. Lendingkart promises business loan disbursals up to ₹1 crore within 3 days of your document verification.

 

Minimize Your Personal Liability

If you are a sole trader or running a partnership firm, it makes you liable for all aspects of the business, including the debts and losses. The costs of any accidental product defect or service disruption are to be borne by you, which can be financially risky.

After business registration, a company becomes a separate legal entity and setting up one can help protect your personal assets from a business loss.

Decrease Your Tax Liabilities

Since, your business becomes a separate entity, it also becomes a separate tax payer. Additionally, you can apply for tax rebates and subsidies under various programs, such as “Startup India” and “Skill India”, being run for the promotion of MSMEs by the government.

Streamline Ownership

Business registration helps you clearly define the roles of different founding members and their relative share in the business. It will give the company a steady leadership and help in resolving any future conflicts within the top-level management.

Establish a Brand

Through business registration, you will also can establish a brand image among your customers and suppliers. It will also give you a position of strength when dealing with third parties, as the contracts will be between companies rather than owners.

At Lendingkart, we are always happy to share or experience in the MSME finance to help new companies and entrepreneurs. If you are looking for fast business loans, use our website or download the Lendingkart app from Google Play or App Store to get a quick quote.