For most entrepreneurs struggling to expand their business and take it to the next level, financing is the biggest hurdle. While they believe in their business model, it sometimes needs a bit of scale to really achieve success and grow to new heights.
Financial problems are typical where sufficient funds are not available at the right time. The cost of borrowing from banks are typically high with even larger and inhibiting collateral requirements. In these situations a small business owner can feel extremely frustrated and helpless, running pillar to post to make his dream reach the heights they know it can.
When looking to set up, scale up or expand a small or medium sized business, the challenges faced are common across the country –
- Legal & Taxation
- Infrastructural & Technological
Historically, entrepreneurs have been accessing capital from friends and relatives. Alternatively, they borrow from private money lenders in the unorganized financial sector. This puts unnecessary stress on entrepreneurs and is an expensive source of funds doing more harm than good to a growing organization.
To help these enterprises overcome the lack of funds, several institutions now offer SME Loans. The financial lenders are using innovative products and methods to make funds available to this sector. Most SMEs do not have the assets to offer as collateral, which makes unsecured SME finance the perfect solution for small to mid-sized entrepreneurs to grow their business. These loans are generally sanctioned on the basis of the financial projections of the entrepreneurs and credit ratings.
Unsecured loans are available through several banking and non-banking financial institutions at affordable interest rates. These require lesser documentation and have faster approvals and disbursals with wider reach in smaller locations of the country.