SMEs or small and medium enterprises may find it difficult to avail business loans from NBFCs and other financial institutions. Therefore, they can opt for alternative ways to secure the necessary funding.
If you operate a start-up and the company is classified as an SME, you can avail start-up loans. New ventures can benefit greatly from this funding option, ensuring proper availability of cash whenever the need arises.
If you are facing trouble financing the day-to-day operations of your small company, a working capital loan is an ideal choice. The proceeds from this credit can ensure uninterrupted operations for your company, even when your profitability is compromised.Businesses can also use an invoice as collateral, availing cash in the form of SME finance. In such a case, lenders may approve a loan of up to 80% of the invoice value.
An equipment financing solution refers to availing a secured credit to purchase a necessary piece of machinery or equipment. The machinery, along with other assets, acts as collateral for the said business loan. Lastly, one can apply for a business credit card to cater to the immediate expenses that may crop up. Still, the hefty interest charges make credit cards one of the costlier prospects in this list.
