What Are the Benefits of Business Loans? | Bajaj Finserv (2024)

FAQs

What Are the Benefits of Business Loans? | Bajaj Finserv? ›

Here are some of the benefits of availing of a Bajaj Finserv Business Loan: Flexi loan facility – Reduce EMIs by up to 45%*, withdraw money when you need it, and prepay when you can with our Flexi loan facility. High loan amount – Get an ample sum up to Rs. 80 lakh for your business needs.

Managing Cash Flow and Seasonal Fluctuations

Business loans can bridge these gaps and help businesses maintain a healthy cash flow. By providing immediate access to funds, businesses can cover operating expenses, pay suppliers, and meet financial obligations during lean periods.

To Cover Unexpected Expenses. Another common reason to get a business loan is to cover unexpected expenses. Whether it's an unexpected bill or an emergency expense, having funds available can help keep your business running smoothly.

If the lender is taking out a loan on an asset that won't depreciate, such as education, real estate or their own business, on favorable terms, it's considered good debt.

Business loans are a great form of financing that can help you build your credit score. You'll receive the funds you need now while also establishing a positive credit history.

Bajaj Finserv has low foreclosure and pre-payment charges that make this step affordable. You have to only ensure that the part pre-payment amount is greater than the value of one EMI. Fast approval, a high loan amount and flexible repayment modes make a personal loan from Bajaj Finserv better than the rest.

The Investment Information and Credit Rating Agency (ICRA) evaluates the credit risk of all the NBFCs in India. You can confidently invest in Bajaj Finance Fixed Deposit as it has the highest credit ratings— CRISIL AAA/ STABLE and [ICRA]AAA(Stable).

Shop all you want with zero downpayment - Bajaj Finserv.

Why are business loans risky? ›

Most SBA loans require a personal guarantee, meaning your lender can seize your personal assets if you can't cover the cost. It's critical to have a repayment plan before borrowing money and to take only what you need.

A business loan is not included as taxable income when a company receives a business loan. In turn, when that loan is repaid, you cannot deduct principal payments. You are simply paying back the money you borrowed, not spending money in any way you can write off. However, you may still be able to make some deductions.

Business loans cannot be used to pay off personal debt, including credit cards, mortgages, student loans, and more.

While you can use a personal loan for some business-related expenses, you can't always use a business loan for personal needs. There are some work-arounds, like if purchasing a certain item or need that directly impacts your business.

How much of a business loan you can get depends on your business's annual gross sales, creditworthiness, current debts, the type of financing, and the chosen lender. In general, lenders will only provide loans up to 10% to 30% of your annual revenue to ensure you have the means for repayment.

There are tax deductions

A strong advantage of debt financing is the tax deductions. Classified as a business expense, the principal and interest payment on that debt may be deducted from your business income taxes.

Is it a good idea to get a loan to start a business? While getting a business loan for a startup is risky, many startups need a loan to get off the ground. You may choose to take out a business loan if you have a solid business plan and a product or service that's highly marketable to your target customers.

They serve as the lifeblood of a thriving economy, fueling innovation, generating employment opportunities, and fostering healthy competition. Small business loans act as a lifeline, empowering these enterprises to thrive.

By taking a loan, a person may have the capital necessary to begin a new venture. The new business can help to grow the economy by creating jobs for people and contributing to economic growth. This can also help the entrepreneur earn profits quickly, as the new business can provide a steady stream of income.