Running your own business may allow you to reap the maximum profits, let you run your business independently, and grow it in any direction you see fit. But it also comes with various risks like being able to keep the business up and running through difficult times, being solely responsible for any bad business decisions, and securing funds to keep the business operations running.
While the managerial and decision making risks are something that differs from person to person and business to business, securing funds is a risk all business owners have to take. Luckily there are a lot of financing options available in the market today like personal loans for the self-employed, business loans, working capital loans, etc., which the business owner can get without any collateral. With financial institutions like Bajaj Finserv you can get an unsecured business loan with a flexible repayment tenor of up to 84 months, self-employed business owners can focus on running and growing their business instead of having to worry about repayment of loans.
Let’s have a look at the 5 best financing options available for self-employed professionals in India:
- Business Loan from Financial Institutions: Self-employed business owners who are running a business that’s not an old business and has been running for at least three years can get a collateral free business loan from Non-banking Financial Institutions or Micro Finance Institutions.
- Working Capital Loan: Self-employed business owners can also take a working capital loan to fund their day-to-day business operations and keep the business running. Self-employed business owners can calculate the working capital of their business by subtracting current assets from current liabilities. Depending on the amount they need to meet their working capital demands, they can take a working capital loan.
- Invoice Financing: Since most businesses in India run on credit, business owners can get a personal loan for self employed via invoice financing. Under invoice financing, financial institutions offer loans on high-worth unpaid invoices as collateral. Business owners can use the loan amount to keep their business operations running, and then pay off the loan once they receive the invoice amount from their debtors.
- Machinery Loan: You can take a machinery loan as a self-employed professional to buy or update old machinery for your business. You can avail machinery loan for amounts of up to Rs.45 lakh to buy new machinery or update existing machinery for your business.
- Term Loan: Self-employed professionals can also opt for a term loan which is a financing option under which the borrower needs to complete the repayment of the loan with a pre-set tenor and fixed EMIs. Term loans can be availed for both short-tenor and long-tenor with the maximum tenure for business loan going up to 5 years for short-term loan and 20 years for long-term loan , you can pay out the loan in easy installments and achieve the growth you want for your business.
Now that you know the different alternatives available for a personal loan for self-employed professionals in India, you can choose a loan that suits your business requirements and eligibility the best and use the loan to continue funding your daily business operations and achieve the growth you want for your business.