Sophocles once wrote, “Wisdom outweighs any wealth”. While wisdom is the greatest wealth. It’s also true that wisdom can contribute to achieving wealth—especially in effectively conducting business and wisely managing your finances.
There is no shortage of dreams, hope, effort and great minds, the biggest challenge is funding. A few decades ago, there were not many options for business funding. The need for business funding has skyrocketed with the evolution of business and a surge in the number of startups. Many lenders are offering unsecured business loans to cash in on the increased demand. One of the key reasons several business owners do not apply for an unsecured loan is the interest rates. What people don’t realize is that the pros of an unsecured business loan outweigh the cons.
Listed below are 10 reasons from JP Finance about why an unsecured business loan is more beneficial to your business.
As the name suggests, business loans of the ‘unsecured’ nature do not require collateral against the credit. It is uniquely favourable for startup businesses or businesses that do not have any material asset to pledge as collateral. Availing unsecured business finance becomes much more workable for business owners or entrepreneurs looking to boost their business ventures.
2.Zero Up-front Charges
Most bank loans incur a processing fee, taxes, cancellation/ foreclosure charges, late payment charges and annual interest rates. These charges payable to the bank are beyond the loan amount. However, Unsecured loans from JP Finance are free of any upfront or hidden charges and there are no charges on the pre-payment of the loan as well.
3.Competitive Interest Rates
Most money lenders offer highly competitive & affordable interest rates on unsecured loans without any collateral against the loan. JP Finance offers unsecured loans at very low-interest rates with flexibility in the loan approval without collateral and in terms of repayment. Our unsecured loans help businesses to focus more on their goals and growth.
Most unsecured loans are sanctioned with a shorter loan tenure ranging between 12 to 60 months. This gives the business owners a breather from paying long-term EMIs for loan repayments. The shorter loan tenures also allow the borrower to maintain a positive cash flow position.
Repayment of the loans is a long and challenging task. With most banks and moneylenders, foreclosure of the loan before the loan tenure incurs charges between 2%-5% of the loan amount. JP Finance provides flexible repayment options to make the repayment process much easier. This gives complete control over the repayment.
Most loan providers have made it extremely easy for borrowers to avail a business loan. Today, unsecured business loans can be availed from the comforts of homes or offices. The websites of the lenders are extremely user friendly and have detailed instructions on the entire process of the loan application. At JP Finance, the application process is extremely simple, just 4 simple steps and the loans are disbursed.
Today, the unsecured business loan requires very minimal documentation. Fundamentally, a borrower only has to submit identity proof, address proof, certification of business existence, bank account statements and relevant financial documents. At JP Finance we believe in the value of time and hence we have simplified the documentation process to make it easy for our customers.
8.Instant loan disbursal
The application for loans has been made easy but is it the same for the disbursal of the loan. In most cases of unsecured loans, if the borrower meets all eligibility criteria, the loan application could be processed much faster, and the amount sanctioned instantly. For instance, with JP Finance, it only takes less than 15 mins to apply for the loan and upon satisfying all the eligibility criteria. The loans are sanctioned within 48 hrs., irrespective of the loan amount
9.No shared ownership
Convincing venture capitalists or angel investors to invest in any business is difficult. Also, in most cases, angel investors ask for a share in the company’s profits in return for their investments. JP Finance aims to assist businesses to grow to their full potential. Hence, with JP Finance, our customers do not have to worry about anything but their business.
10.Criteria for Eligibility
The eligibility criteria for an unsecured business loan may differ for different providers, but the basics remain the same. For instance, if you apply for an unsecured Business Loan with JP Finance, our eligibility criteria must be fulfilled. This helps both the customer and JP Finance conduct transparent and hassle-free transactions.
JP Finance is one of the most trusted private finance companies for businesses in Chennai. At JP Finance, we have curated our finance business by offering an array of comprehensive financial services, including Business Loans, Cheque Based Loans, Industrial Machinery Loans, Small Business Loans, Loans against Property and Customized Loans. With our low-interest rates, instant disbursals, hassle-free loan processes and flexible repayment options, we will aid the growth and expansion of your business. We cater to our customers spread across Tamil Nadu.