Business Loan for Traders
If you are a small MSME entrepreneur looking to grow your Business, you will need to take certain steps. Increasing the funding for your small business is one of the most crucial aspects of expansion. Every MSME requires funding for their business at some point in time. Without it, their business will not be able to reach its goals. In addition, this funding can be used to manage and finance the unplanned expenses that your company incurs. A loan from Kinara Capital can be the best solution for funding a small business.
MSME loan for traders can be very beneficial, facilitating essential expenses like inventory purchases, improving and maintaining shop premises, investing in customer outreach and marketing, expanding product portfolio, and paying for day-to-day business expenses. By taking a loan for traders in India, like the ones offered by Kinara, traders can improve their business turnover and fuel expansion.
The Importance of Business Loans for Traders
To understand the importance of business loan for traders in India, we have to consider the fact that demand for goods at the retail level is often cyclical or seasonal. This means that while during peak season, like festive periods, demand might skyrocket, facilitating increased sales and revenue, it can also fall drastically during certain periods. During these lean periods, business loans can come to the aid of traders.
Collateral free loan for traders is a lifeline for MSMEs engaged in trading. When demand is inconsistent, so are cash flows, and MSMEs need to regulate cash flows in order to keep operating without interruption. Loan for traders without security ensures that they can access capital as and when they need it, without the need for providing asset collateral to the lender. This way, their operations can continue smoothly, and they can even invest in growth plans and tide over unexpected expenses.
Why are loans for traders without security important?
Kinara Capital offers loans for traders, without security or collateral. They are especially beneficial for small trading businesses that don’t own any property or assets. These loans are approved after the MSMEs have cleared the eligibility criteria.
Here are some benefits of loans for traders without security via Kinara Capital:
- Easy and Quick
Loans for traders without security are easily and readily accessible to small business entrepreneurs. Loans can be processed in less than 24 hours. Time is critical for trading businesses. By following just a few steps, these loans can be procured by trading MSMEs.
- Full Control Over Business
Unsecured business loans allow business owners to maintain full ownership and control of their company and assets. As a result, they help in maintaining liquidity in the business.
- Doorstep Customer Service
We understand how important an entrepreneur’s time is, which is why the entire loan process can be completed online. If an offline process is preferred, a Kinara loan officer will visit the business location for all documentation and loan processes.
- Minimum Documentation
The documentation process is flexible, certain documents can be substituted depending on the loan application.
Grow your MSME with collateral-free business loans
Loan Options for MSMEs
Kinara Capital focuses on giving the best schemes for loans to small businesses. These types of loans are very versatile and flexible. They can fulfill the requirements of many different sectors of a business. For example, loans for traders without security can be used for daily operational expenses, expansion of the business premises or products, modernization, increase the inventory etc. The business loans don’t have any hidden fees to make the experience even more user friendly.
Kinara Capital offers a great range of loan solutions to MSMEs in the manufacturing, trading and services sectors. These different types of loans cover various kinds of requirements. Here are some loan options that are made available by Kinara Capital:
1. Working Capital Loan
This is a type of loan for traders without security. The company gets funding to meet the daily financial and operational requirements that they may face. It helps lend liquidity to a company before cash flows come in.
- Can be used to fund operational expenses like paying salaries, buying raw materials and renovating the business premises.
- Helps manage new business opportunities
- These are short term loans with a tenure of 12-60 months
- Interest rates range from 24% P.A. (on a reducing rate basis)
2. Machinery Loan
Under this unsecured loan type, small manufacturing businesses are offered a term loan to expand their business further. This can be utilized in the purchase of new or used machinery or other assets for business use.
3. HerVikas Loan
HerVikas scheme by Kinara Capital is a type of loan for traders without security that benefits women. Women entrepreneurs can now procure business loans at an upfront discount.
Conclusion
Trading businesses witness seasonal fluctuations in demand, which, in turn, can make their cash flows irregular. This results in financing issues as shortfalls occur, and can bring their operations to a halt. In order to regulate cash flows and keep their businesses running smoothly, traders can opt for business loans, which they can use to cover day-to-day expenses and invest in business growth. The sky’s the limit for trading businesses with the help of Kinara Capital’s loans. So, apply for a collateral-free business loan today!
FAQs
Who can apply for a loan for traders without security?
MSME entrepreneurs engaged in trading, with a turnover between Rs. 50,000 and Rs. 2 crores can apply for a loan without security from Kinara Capital.
What are the benefits of a loan for traders without security?
These loans don’t require collateral, so traders don’t have to stake their assets in order to access them. They also have quicker approval times and more flexible terms compared to secured loans.
What is the maximum loan amount I can get without security?
You can get loans of up to Rs. 30 lakhs without security from Kinara Capital.
How long does it take to get approval for a loan for traders without security?
If all the paperwork is in place, you can receive your loan in just 24 hours.
What is the interest rate for loans for traders without security?
Interest rate for Kinara Capital’s loans begin at 24% and is calculated on a reducing rate basis.
How does a loan for traders without security differ from a traditional business loan?
Unlike traditional business loans that require collateral, loans for traders without security speed up the process, offer more flexibility, and are often tailored to MSME needs.
Can I apply for a loan for traders without security if my business is not registered?
No, in order to apply for a loan from Kinara Capital, your business must be registered.
