There are different types of small business loans available in the market today. The options vary depending on your business’s requirements, the duration you want the loan for, and other specific loan terms. We, at Kinara Capital, can help your company grow by funding new research and development, enabling you to expand to new markets, improving sales and marketing efforts, and allowing you to hire new employees, among other things.
This article explains some benefits of taking an MSME loan and the key steps that take you closer to your small business loan disbursement.
Disbursement of a business loan is the release of cash to a borrower by a lender as part of its agreement. This starts when the loan application is approved and all requirements are met. How this takes place depends on how the borrower and the creditor agreed upon during the time they signed their documentation.
The business loan disbursement process involves transferring the approved loan amount to the customer’s bank account provided, or instead, it can be made payable through cheques. Now that you have your money in your hands, you can now use it for various purposes, such as buying some tools or supplies, expanding your venture, managing liquidity problems and investing to achieve growth.
Financing through debt is considered convenient and accessible, and repaying a loan can also improve your company’s credit profile which makes future loans cheaper. With monthly repayments at a reducing business loan interest rate, it’s easy to manage. Also, in cases where your cash flow is less predictable because, for example, your business is seasonal or your customers are often late-paying, a small business loan can help fill the gap even on an urgent basis. Kinara Capital’s quick loan disbursement allows you to grab every big opportunity that comes your way, even if it includes investing in more inventory, employees or equipment.
Contrary to popular belief, borrowing doesn’t mean that the business is in trouble. In fact, it can be a smart way to transform your business and tap into the next phase of growth.
Once the loan agreement is signed, the lender will start disbursing funds. Here’s how the business loan disbursement process works:
Setting up a Business Account: You need to set up a business account with the lender or ensure that your existing business account can receive the loan proceeds before funds are disbursed.
Fund Transfer: The loan amount may be directly credited into your business account or given as a check depending on the lender’s process. This way of doing things is convenient and fast in that you can get hold of your money easily.
Availability of Funds: It may take some time for your funds to be available in your account following transfer, usually within several working days. At this point, the bank processes and clears out the transaction.
At Kinara Capital, we provide collateral-free business loans at flexible terms to MSMEs in India. Small businesses that are looking to expand further, be it for renovation, hiring, equipment or inventory, can apply for a small business loan and get loan disbursement in as little as 24 hours.
Follow the below steps to speed up your loan disbursement process:
Take an online eligibility check with us in just 1 minute and find out if your business can opt for a small business loan. The check is available in 7 Indian languages, making it easy for you to check your eligibility.
With our fully online process, you can easily upload your personal and business documents. You can also get help from our customer service through a chat or call. Now you can also download our customer app, myKinara, and complete the process through it.
Get your loan approved and processed and money digitally transferred directly to your account within 24 hours.
Our tech-enabled and data-driven process allows us to disburse unsecured business loans much faster and more efficiently than traditional lenders. Kinara Capital ensures quick loan disbursement through the below-mentioned features:
One of our customers, Karthikeyan AS from ASK Three Star Steels, got the funding he needed from us when he saw the need to upgrade from traditional painting methods to powder coating but didn’t have the funds. Kinara Capital’s quick loan disbursement helped improve his finished product’s quality due to the right equipment. After the upgrade, he was able to triple his turnover!
You can also use business loans to provide long-term investments like equipment financing or serve short-term needs like working capital. Working capital loans can help you fill a short-term funding gap or contend with an unforeseen situation or emergency. They can be used to buy raw materials when you have a big order in hand, buy inventory, or hire additional staff if necessary. The sky is the limit when you have the right funding. So, take your eligibility check by simply downloading the myKinara App from the Google Play Store today and begin your business expansion journey!
Small Business Loans can be used to purchase raw materials when one has a big order, buy inventory or employ more staff if need be. The sky is the limit if you have proper funding. So, take your eligibility check with Kinara Capital today and begin your business expansion journey! Good luck!
Kinara Capital makes it simple for you by offering easy and fast online and offline loan options. Small businesses can start by checking if they are eligible in just 1 minute on the myKinara App. Also, we have a dedicated customer support team available between Monday – Friday (9.30AM – 6.00PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.
How long does it take for a business loan to be disbursed?
The disbursement of a business loan doesn’t take much time. It will mostly take from few days to some weeks, depending on the lender’s processes, how intricate your application is and the nature of the loan you are applying for.
What factors affect the disbursement of a business loan?
Various things affect the disbursement of commercial loans including: completeness of your application; document verification; creditworthiness; amount of loan required and other lenders’ requirements.
Can the loan amount be disbursed in parts?
The money can, in certain circumstances, be split into separate amounts as it may happen with large loans or projects that have several stages. This agreement allows borrowers to get funds as they need them and it can be negotiated with their lenders.
Is collateral required for business loan disbursement?
Whether you require collateral or not is determined by the kind of lender and the type of loan in question. Some loans might require security such as properties or assets while others like unsecured ones may not necessarily demand this. However, with Kinara Capital, you can get your business loan without a collateral.
What documents are required for business loan disbursement?
Depending on who your lender is and what kind of borrowing you applied for, specific documents needed for issuance are varied. Common examples include copies like incorporation certificates; attendants’ records; tax receipts; any means of identification, plus those pledging securities.
What happens if there is a delay in loan disbursement?
If there is any delay in receiving your credit facility ensure that you contact the financier so that they explain to you why the situation happened before giving you an expected date when they will complete the transaction. Sometimes creditors could offer alternatives or expedite processes just to avoid inconveniences.
Can the loan disbursement be cancelled?
According to the terms contained in our agreement we have signed if we want to withdraw our cash having taken it but had not yet remitted then we can still do it within some conditions stated. However, cancelation after disbursement may attract penalties or other clauses stated in the agreement.
Is there a specific time frame within which the loan amount must be utilised?
The utilisation period for borrowing is different from one lender to another and depends on what the borrower is putting their money into. Some loans may come with specific use requirements or restrictions on how funds are spent, while others allow for flexibility in fund usage. It is important, therefore, to check if there are any limitations on the usage of funds under the contract that governs the particular loan product.
