About Business Loan

This solution is a medium-term, flexible, on-going facility that gives you access to credit as and when your business needs it. The revolving credit line is based on your business’ capability and capacity to meet repayments. Fixed repayments can be structured from 36 to 60 months. You may use the balance paid to extend the period of the loan without changing the amount of the repayments.

While a loan may not be the first choice for a business, it sometimes is the only way for a business to succeed. There are wide number reasons that a business may need to borrow money. Could be to hire new employees on a short notice, make up for payroll during a slow month, advertising purposes, expansion, and growth or more. Whatever the reason may be, every small business will likely need financial help at one point or another.

There can be a few downsides to borrowing money, such as the interest, but all in all the advantages can very advantageous. For starters, it can keep a business from failing.

Say an antique shop has a seen a recent slowdown in sales. Perhaps the road construction on its street has deterred the usual passerby from coming into the store.

The business owner learns that the construction schedule has been delayed and isn’t planned to be finished for months! He decides to advertise his business harder than usual in hopes to regain customers but hasn’t budgeted for such an unexpected expense. Does he sit around and watch his business fail or does he take out a small business loan?

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Business Loan Products

SBA loans

The US Small Business Administration (SBA) does not make loans; instead it guarantees loans made by individual lenders. The main SBA loan programs are SBA 7(a) which includes both a standard and express option; Microloans (up to $50,000); 504 Loans which provide financing for fixed assets such as real estate or equipment; and Disaster loans. In FY 2016, total 7(a) volume was $11,967,861,900 and total 504 loan volume was $2,517,433,000

Mezzanine finance

Advania Group also offers Mezzanine business loan.

Mezzanine finance effectively secures a company’s debt on its equity, allowing the lender to claim part-ownership of the business if the loan is not paid back on time and in full.

This allows the business to borrow without putting up other collateral, but risks diluting the principals’ equity share in case of default.

Asset-based finance

Once considered the finance option of last resort, asset-based lending has become a popular choice for small businesses lacking the credit rating or track record to qualify for other forms of finance.

In simple terms, it involves borrowing against one of the company’s assets, with the lender focusing on the quality of the collateral rather than the credit rating and prospects of the company.

A business may borrow against several different types of asset, including premises, plant, stock or receivables.

Invoice finance

Alternative options are invoice discounting or factoring, whereby the company borrows against its outstanding invoices, with the ability to obtain funds as soon as new invoices are created. It is often questioned which option is best for your business – factoring or discounting – and the answer depends on how the business wants to be perceived by customers. With factoring, the finance company charges interest on the loan until the invoice is paid, as well as fees, and the finance company takes ownership of the debtor ledger and uses its own credit control team to secure payment. With invoice discounting, the business maintains control of its own ledger and chases debts itself.

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Features of Business Loan

Transparent Interest Rates

Business loan interest rates are based on diverse factors such as credentials of the borrower, cost of funds, loan tenure and market dynamics. Interest rates offered by Advania Group are transparent adhering to the best market practices.

Multiple Loan Programs

With Advania Group Multiple Loan Programs for business finance, you can acquire the necessary funding to sustain in this competitive world. These loan programs are assessed by an expert team based under turnover, cash profit and banking.

Flexi EMIs

A one-of-a-kind product offer from Advania Group, Flexi EMI option enables you to customize your loan repayment as per your convenience. You get to choose a repayment plan that suits your cash flow.

Hassle Free Loan Disbursement

Commercial loans offered by Advania Group are usually approved within fourteen business days after a duly-filled loan application and all documents are submitted.

Business Loan - Eligibility

Any salaried, self-employed or professional Public and Private companies, Government sector employees including Public Sector is eligible for a business loan.

Age

Maximum age of applicant at loan maturity: 60 years

Income

Minimum Net Monthly Income: $500

Credit Rating

Applicant should have a bank account with Advania Group.

Frequently Ask Questions

While there are many different types of small business loan, most can be categorised into a handful of lending terms. Firstly, as with personal loans, it is possible to apply for business loans that are either secured or unsecured. Secured loans tend to be held against some form of collateral, perhaps a property or vehicle that can be repossessed if payments aren’t made. Again just like with personal loans, unsecured loans which require no collateral can carry higher interest rates to help the lender hedge against the added risk.

Secured and unsecured loans are a more general way of categorising all loans. Business loans are split into different types of specialist loans to suit different circumstances, the most common of which are:

  • Start Up Loans: Designed to allow companies to access the capital they need to fund the development of their new business, these tend to be Government-backed.
  • Invoice financing: These allow businesses to borrow money based on invoice amounts owed. They’re often seen as a solution to cash flow problems.
  • Asset financing: A funding solution that helps companies to purchase or lease the assets and tools they need to grow.
  • Merchant cash advances: A funding solution through which businesses are given a cash advance in exchange for providing the lender with a percentage of all the sales they process through card payments.
  • Merchant cash advances: A funding solution through which businesses are given a cash advance in exchange for providing the lender with a percentage of all the sales they process through card payments.
  • Bridging loans: Designed primarily for property investors and developers, bridging loans provide a lump sum of cash to enable the purchase of a property or a business before the buyer has freed up their own funds, for example through the sale of an another property.
  • Tax loans: A loan solution that allows a business to meet its tax liabilities by spreading repayments across a period of months.
  • Credit lines: A form of on-going loan wherein businesses can borrow and repay money on a consistent basis up to a specific limit.

The answer to this question is dependent on the kind of loan you choose. With bridging loans, you may make all your repayments within a single year, whereas with commercial mortgages, repayments may be spread across 10 to 25 years. In most cases the longer that you borrow for, the more you will pay in terms of interest, and this is an important factor to be aware of when you are choosing the ideal business loan for your specific circumstances.

A business loan can be used to fund the purchase of new assets, or invest in business development. Companies can use loans to acquire or rent premises and office buildings, vehicle fleets, new equipment for their staff or even to make new hires. Usually, the lender that you approach will consider the reason for your loan, alongside other crucial factors like your ability to repay the amount owed, when deciding whether or not to loan the money.

It’s a good idea to choose a loan that is suited to your specific needs in some cases. For instance, you would use a commercial mortgage to purchase property, asset financing to fund the purchase of new tools and equipment, and a Start Up Loan to help you move into the world of entrepreneurship for the first time. This way you’re working with repayment plans that cater to your circumstances.

The documentation and information you will need to successfully apply for a business loan will depend on the type of loan you hope to receive. Usually, it’s a good idea to consider your credit history, the outgoing and incoming cash flow of your business, and your ability to make repayments each month. If you feel that you might struggle to make repayments at certain times of the year – perhaps with seasonal market changes, then you might want to think carefully about your ability to access a loan.

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