07 May 2019 | 3 min read
The Internet has created the biggest marketplace for businesses to thrive in and this is the reason why every year more and more small businesses seek online ways to grow and innovate. An online presence does not only work as a great marketing tool for your business but it is also a cost-efficient and more professional way of working. So, what does it take to take your business online?
To build a website from scratch, you will need services like web design, domain name and website hosting, content management system, online marketing, social media marketing, etc. Basically, from setting up a website to making it reach the targeted customers, everything requires funding. A small business loan can be of big help in such a situation. This Diwali lenders like HDFC Bank is offering 50% off on HDFC Bank business growth loans.
Loan Amount- First, you need to estimate the funds that you would need to take your business operations online. Nowadays, there are several agencies that can provide you almost all services needed to establish your business online. Speak with various service providers to compare the cost and arrive at a fair estimate of how much you need. Based on this estimate, you can decide a fair amount of business loan that you might need.
Cost of Borrowing- Most of the borrowers think that it is only the interest that they have to pay on a business loan and hence only take the rate of interest into consideration. However, other costs like processing fees and penalties should also be understood before choosing a particular lender for your business loan.
Mode of Disbursal- There may be two modes of business loan disbursal- lump sum and installments. As the name suggests, you would get a lump sum amount in case of former disbursal method and the latter provides you funding as per the needs during different stages of your business expansion.
Collateral- As per your borrowing needs and the terms of the bank, you may be required to pledge an asset as collateral. This can be business machinery, residential/commercial property, future sales, etc. You must have a fair idea about what asset you would be willing to give as security to the bank.
Usage of Funds- For any type of business loan, lenders would only be ready if they think that a particular business or an expansion plan has the potential to earn a profit. Taking your existing business online would be considered as a business expansion by the banks. They would determine your eligibility for the business loan and the amount of funding based on your projection of how you would use the loan proceeds. It is advised to prepare a business expansion plan before you start looking for the right lender.
Banks will be more interested in lending to businesses that are already underway with their online expansion project. Your best business loan application would be more convincing if you have-
Prepare how going online can help your business new horizons and banks will always be willing to fund your dreams. To get the best business loan, fill out the form given above. One of our representatives will contact you soon.
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