Business Loans India | Commercial Loans | Small Business Loans | Business Overdraft | Loan For Entrepreneurs | Loan For Self Employed

India has become a better place for upcoming entrepreneurs to get a loan, but at the same time the overall process to start a business here has become tougher in the last one year. The recent World Bank study has found this fact. According to the ‘Doing Business 2008′ report published by the World Bank and its private sector lending arm IFC, India has moved up 12 positions in terms of ‘ease of availability of business loans’, but is still ranked in the bottom half at 120th position among 178 economies across the world.

The ranking format is based on ten different indicators of business regulation that track the time and cost to meet government requirements for business start-up, operation, trade, taxation and closure. India has improved significantly when it comes to getting easy credit and trading across the world, but its position has deteriorated in areas like starting a business, employing workers, registering a new property and paying taxes.

In the literal sense, a business loan is a loan offered for business purposes. The field of business loans is growing day by day. With the diverse types of businesses and their needs, equally varied business loans have emerged.

Categories Of Business Loans

SBA Loans: Small Business Administration or SBA loans are meant for small businesses. SBA doesn’t finance the small businesses directly. The SBA co-ordinates with CDCs and private-sector lenders, such as banks and financial institutions, to finance small businesses.

Secured Loans: Creditors issue secured loans against a worthy asset of the debtor as a security. Applicants require secured loans for working capital when the applicant wants to convert any of the company’s assets into working capital.

Unsecured Loans: Creditors offer unsecured loans for working capital requirements on the basis of the credit worthiness of the debtor. No asset is pledged as a security on the business loan.

Accounts Receivable Loans: In this type of loan, accounts receivable are pledged for availing loans in order to obtain short-term working capital. The creditors process these loans quickly and make them available at low interest rates.

Cash Advance Against Merchant Account: Cash advances up to $50,000 can be granted against the monthly credit receipts of the merchant.

Professional Loans: Creditors offer this type of loan for professionals, such as doctors, lawyers, and chartered accountants seeking to start their own establishments.

Beginners’ Loans: Creditors grant this type of loan to start-up businesses.

Franchisee loans: Creditors offer this type of loan for franchisees of well-known and established businesses.

Acquisition Loans: This type of loan helps business houses to acquire other businesses.

Equipment Loans: This type of loan helps businesses to purchase equipment, which is pledged against the loan.

Equipment Lease Back: In this type of equipment financing, the business sells its existing equipment for cash and then leases the equipment from the lender.

Commercial Realty Loans: Creditors issue this type of loan for commercial properties. The term of the loan may be fixed or variable.

Construction Loans: This type of loan is meant for commercial construction purposes.

Realty Loans: Creditors offer this type of Loan for investors, who invest in real estate.

Hard Loans: This type of loan includes many miscellaneous business needs for which the financing is not readily available in the market. Very few institutions extend it and those that do so, extend it sparingly.

Business dependant loans: Creditors extend this type of loan in the name of the business house based upon its ability to justify the loan amount and its ability to pay it back.

Business Bank Loans

When a business first starts operation, a business bank loan is often what keeps things moving. How do you get a good business bank loan? It depends on the nature of your business.

Overview of Small Business Bank Loans

The key thing to know about small business bank loans is that you are often judged on your personal credit. If your business had a long and successful history, you wouldn’t be reading this. Instead, you’d have lenders beating down your door with loan offers.

Building a Foundation for Business Bank Loans

While we need to work on challenges specific to business bank loans, we should first make sure that you are a viable candidate for a personal loan.
The best way to get a business bank loan is to take action. It is surprisingly similar to the best way to get customers for your business. You’ll have the best results with detailed preparation, and by letting people know about you and your business. Once you’ve done that, start pounding the pavement for a good lender.