Over the years, the startup culture in India has been witnessing tremendous levels of growth. Thanks to the ease of business levels going up, we’re continuing to see new businesses, both large and small, cropping up. While the emergence of startups and new businesses is encouraging, there’s one major roadblock that’s preventing them from growing further – access to funding.
Although access to quality funding has gone up in recent years, many startups still find it difficult to gain access to it due to the stringent requirements that banks and financial institutions have. Here’s where an unsecured business loan comes into the picture. It gives these cash-strapped businesses a way to fund their activities. Let’s take a look at a few reasons why startups should look towards unsecured business loans for their funding requirements.
Why Are Unsecured Business Loans Safe for Startups?
Contrary to popular opinion, such loans are quite safe and offer a host of advantages, with attractive business loan interest rates being among them. Here’s a quick look.
1. No Need for Collateral
This is by far one of the most important reasons why an unsecured business loan is considered to be safe for startups. With these kinds of loans, you don’t have to put up any collateral or pledge assets to secure funding. Therefore, if something were to go wrong, your assets or collateral won’t be at risk.
2. Credit Scores Don’t Matter
As you may know already, credit score is a very crucial financial metric that banks and financial institutions use to determine your eligibility for a loan. Since startups may not have a strong credit score or history, they run the risk of not being considered for a business loan. With unsecured business loans, however, that risk is non-existent since your credit scores are usually not taken into consideration.
3. Unrestricted Financing
With regular business loans, lending institutions usually restrict the use of the loan to just a few activities. That’s not all. Not adhering to these restrictions can also get you into trouble. However, that’s not the case with unsecured business loans. In fact, you can use them to fund almost any kind of business activity. There are absolutely zero restrictions whatsoever. This makes them one of the safest funding options for startups.
4. Long Loan Tenures
In addition to attractive business loan interest rates, you also get the option to choose long loan tenures of up to 60 months. Choosing a long tenure gives you some much-needed time to pay off your loans and reduces the risk of non payment by bringing down your monthly EMIs.
5. Online Loan Application Process
The entire application process for an unsecured business loan can be done online. This not only gives it an element of safety, but also speeds up the process significantly too. In fact, all it takes is a few minutes to fill and submit the application form.
If you’re an aspiring entrepreneur looking for funding, it is time that you took unsecured business loans seriously. Want to apply for one? Visit Finserv MARKETS right away. It is an online marketplace with a host of different loan providers to choose from. That’s not all. You can get your loan approved within 24 hours too.