Questions You Always Have About Business Loans

So your venture needs that quick combination of funds to keep it smoothly moving and progressing !!!

Probably your constant liquidity situation is bit extended?

Or probably you have a convincing idea (and a clean and thorough business plan) for an amazing new start-up?

Or you are hopefully planning to expand and extend your existing business?

In any of your predominant thoughts, you may need funds. Easy way to make funds available is through Business loan. And Yes… it should be borrowed from a kind and approachable partner like Intec Capital.
Many people have uncertain and dull perceptions about business loans. Now its time to make your perceptions and myth clear. Keep reading ahead and we are confident we will set your mind at ease. Now, assuming that you have made it clear that you need funds to take a leap in your business growth, here are some important points and views that you may need to understand.

For the Start-up Venture: A business loan providing entity does not need a share holding/stake in your venture –
Although Angel investors and Venture capitalists are hot spots in current business funding requirement list, but don’t give renowned Banks and Non-Banking Financial Companies (NBFCs) a complete miss or lighter thought in your search for funds.

For the Small and Medium Enterprise (SME) Owner: A business loan can be helpful in numerous ways –
You may probably wish to have a break up in funds i.e., allocating and using separate funds department wise. For example you wish to use funds for HR department or marketing expenditures and not willing to use revenue streams for them. A business loan can be just the mixture you need to run your Human Resource department and meet your marketing, advertising, promotions, supply chain, stock, training or payroll expenses. You also get tax benefits against business loan interest, which is a genuinely a cherry on the cake in favor of borrowing a business loan. And Yes, with Intec Capital’s EMIs you have a good range of repayment options that will suit your particular repayment capacity. Go through the revenue potential of the needs you wish to finance with your business loan, and simply reach out to us – we assure you help in best possible way.

For the loan newbie: “But I have personal funds that I could use from time to time for business” –

It is not a great idea and it is not recommended. Reason being…. accounting hurdles. The utmost important reason to maintain business funds and personal funds separately is the confusion it results during preparing balance sheet and tax filing. Being a Business person, you pay some or the other government taxes like TDS, ST, VAT etc depending the business you are into and having a separate stream of business funding will keep the books clean. It also helps in smooth auditing. Also, if your business goes in a slack mode or a critical phase and suffer repayments, you will have unnecessarily put your credit scores at risk because you used personal funds in your business. Jumbling the two will also not give a clear indication of how your business is doing as a stand-alone entity, which will also affect its credit-worthiness and trust in future.

Conclusion- whatever is your requirement as far as business loan is concerned – google it, ask your friends and family members, inquire in the market, speak with at-least one or two financial advisors to determine the best way of funding for you.

At Intec Capital, we are proud to have an vast and suitable range of funding options for you to choose from and we’ll be happy to be associated with you.

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