The dynamism of the Indian economic arena is creating the perfect nurturing womb for entrepreneurship developments. Hence, as a businessman, the quintessential question does pop in your head when formulating ways to get financed. Luckily for them, there are plenty of business loans in India offered by the public as well as the private financial institutions. Here you have the 6 broadly known ones for you to get a better understanding as to which loan suits your business the most.

Working Capital Loan

A working Capital loan is a loan that is taken to finance a company’s everyday operations such as salary, creditors, rent, etc. These loans are not used to buy long-term assets or investments and are, instead, used to provide the liquidity that covers a company’s short-term operational needs.

Term loan

A term loan is a long-term borrowing repaid in regular instalments over the period varied between one year to 10 years. Such loans are commonly granted to businesses to support them in purchasing equipment, machinery, building for the production processes, or any other fixed assets to keep their businesses going. The loan requires collateral and a rigorous approval process to reduce the risk of default or failure to make payments on due dates.

Letter of credit
Equipment loan

Invoice financing

Accounts receivable (invoice) financing is an alternative type of commercial financing. If your business has outstanding invoices, but you need the cash for them now, you can apply for accounts receivable, or invoice financing. The founder takes on the risk of whether your customers repay you in exchange for a fee.

Government scheme loans

If you are a MSME, entrepreneur or a start-up, you contribute heavily to the growth of the country’s economy. The Government of India has initiated various loan schemes to promote individuals, MSMEs and women entrepreneurs. Some of the leading Govt. Loan schemes include Mudra Scheme under PMMY, PMEGP, CGTMSE, Standup India, Startup India, PSB Loans in 59 minutes, PMRY, etc.
Now that the roadmap is laid, it will get easier for you to effectively choose which loan works for your unique financial needs. However, by letting the experts handle the tough call of from where, how to and which loan to apply for, you get the chance to channelize your energy into other operations. ABV Debt, in association with a wide number of brands, offers you the most appropriate solution to any kind of financing drawbacks of your corporation.