A basic go-through before signing in for Bank of India business loan

You have had given good years in setting up a business venture and now it’s time to expand its boundaries and take it to the next level. However, with several other expenses already piled up, it becomes a little challenging to arrange funds for the business expansion. This is when Bank of India business loan comes in.

Though, getting a loan is a major financial step, and thus, before jumping into the final deal, it is significant to go through the types of business loan schemes and see what every scheme makes the most sense for a specific purpose. Take time to evaluate your needs and then go ahead accordingly.

Types of Bank of India business loan in India:

• Working capital loan – This is a short-term loan designed to specifically provide financial assistance to the business to meet day-to-day expenses. Working capital loan is beneficial for small businesses, so that the daily operations can be done smoothly, while focusing on other alternatives to increase revenue.
• Equipment loans – Among several Bank of India business loan categories, equipment loans in one such designed for the purchase of types of equipments such as photocopy machines, plants and machinery, vehicles, tools, etc. This loan is especially beneficial for making bigger purchases without shaking the business budget for daily operations. Thus, equipment loans preserves business cash flow and may also offer some tax-benefits.
• Merchant cash advance – This type of loan is made available on the basis of business’ monthly credit card transaction volume. Merchants can typically avail an advance or loan of up to 125% according to their monthly transaction volume. Such loans are widely popular due to their easy availability and hassle-free process.
• Lines of credit – Somewhat similar to that of working capital loans, lines of credit avails funds to business enterprises to meet their day-to-day cash flow needs. Since it is a short term loan for as short as 90 days, and thus, it is not recommended for bigger purchases. These are usually unsecured and don’t involve any collateral or security against the loan.
• Franchise start up loans – Since BOI business loans are available for both small/medium scale businesses and large scale enterprises, franchise startup loans are designed to provide financial assistance for setting up a business franchise. These loans can be availed to pay off franchise fees, manage set-up expenses, purchase of equipments, or infrastructure management.
• Invoice factoring – These loans are generally offered to small businesses against their outstanding invoices. The lender provides an advance for outstanding invoices and this helps the entrepreneurs to pay off the outstanding invoices without shaking the business budget.

For more details on loans and credits, visit https://www.applykaroo.com/loans/bank-of-india-business-loan.