As a business owner, you need to know your finances and the sources of your income and expenses. Once you have this understanding, you can explore different avenues of financial support available to you. A couple of years ago, getting an SME loan was cumbersome and lengthy. This wasn’t because of a lack of collateral or strong business models in the SME sector; lenders have historically been more cautious when lending to small businesses. So, many entrepreneurs had to turn to informal funding, like borrowing from their friends, family, or even the local moneylender.
With more lenders relying on technology to make their lending decisions today, business loans for SMEs have become more accessible for most eligible businesses. Technology has also led to the creation of some new business loan products customised to the needs and situations of small businesses. One such product is a collateral-free or unsecured business loan. Read on to learn why getting an unsecured business loan from CreditEnable will help your business grow quickly.
What is an unsecured business loan?
An unsecured business loan is a collateral-free business loan with a short repayment period. You can use this business loan product to cover several business expenses, including working capital, purchasing new stock, hiring more employees. As you do not need to give the lender any collateral for the loan, you only need to pay your monthly EMI on time. Due to the short-term repayment period, and relatively short application process, an unsecured business loan is a great option for young businesses looking to grow their credit history.
An Unsecured business loan from CreditEnable can be customised to your financial needs. Our proprietary algorithms match your loan requirement with the right lender partner for your business in no time, speeding up the loan application and disbursal process.
Here’s why an unsecured business loan from CreditEnable is what your small business needs:
1. Easy application process
At CreditEnable, our mission is to make affordable finance accessible to all SMEs when they need it. So, we’ve simplified the business loan application process and made it 100% digital. Using our technology platform, you can get your business loan needs in front of our 25+ lender partners with just one short and simple application.
Here’s how we do it:
Step 1: You fill out our short survey and tell us about your business.
Step 2: We check your eligibility for the business loan you need by doing a soft pull of your Experian credit score.
Step 3: If eligible, send us the supporting documents we need to process your application further.
Step 4: Our award-winning technology will match you with a lender partner who is most likely to lend to you, and we submit your complete business loan application.
Step 5: You get your unsecured business loan!
2. No collateral is required
As the name suggests, these loans are unsecured and do not require any collateral from you. No collateral means CreditEnable’s lender partners do not need to spend any time verifying and validating the ownership and valuation of your collateral. So they can assess, approve, and disburse your loan faster and you can put your growth plans into action quicker!
When you apply for an unsecured business loan from CreditEnable, you can borrow an amount ranging from Rs.1 lakh to 75 lakhs with a loan tenor between 12-36 months.
3. Lesser documentation needed
Since you don’t need to put up any security for an unsecured business loan, the documents needed to get this loan product are fewer. No collateral means you do not need to submit any collateral ownership proof.
Lenders will, of course, still need documents to conduct your KYC verification and assess your business finances when you apply for an unsecured business loan. However, if your business is registered, you will already have most of these documents handy.
When you apply for a business loan with CreditEnable, we will tell you upfront what documents you need to get the loan you’re applying for if you are eligible. Once you have your documents in order, simply upload digital versions of them onto our Documents Portal, and we’ll do the rest of the heavy lifting with the lenders for you.
4. Quicker loan sanction and disbursal
By now, you may have understood that the application process for an unsecured business loan is a lot shorter compared to loan products that require security. Now add to that the fact that CreditEnable’s entire application process happens online, and the loan assessment and underwiring process becomes much faster, meaning your business loan can be sanctioned and disbursed quickly!
So, when you apply for an unsecured business loan with CreditEnable, the three-step business loan process – application, approval, and disbursal – can be completed within days rather than weeks if you provide all the required documents upfront.
5. Flexible usage
Some SME loan products are designed for specific purposes, like investing in new machinery, or to use as working capital. The unsecured business loans enabled by CreditEnable do not have a fixed use. This means you can use your unsecured business loan for a business expense where it is needed the most without reporting to anyone what you spent the money on. As long as you can repay your EMIs on time every month, you can use your unsecured business loan for whatever business expense you have.
6. Improve your credit history fast
Since an unsecured business loan is relatively easy to get, and this loan product has a shorter repayment period, it helps you grow and improve your credit history. Your credit history lets lenders know your borrowing history and how promptly you can repay your loans. If you have been on time with your EMI payments, a lender will feel confident lending to you.
Every time you pay an EMI, it gets recorded onto your credit reports and positively impacts your credit score. Since the tenor of an unsecured loan is short, you can repay it fast and improve your credit score to become eligible for a higher value loan amount in the future.
7. Free financial help and business advice
Getting a business loan can be a daunting process, and if you’re a first-time borrower, you may not fully understand the terms the lender is offering you or which business loan product may be best suited for your growth needs.
So, when you apply for an unsecured business loan with CreditEnable, we don’t just match you with a lender and product and prepare your complete loan application. We will also support you throughout the loan process. To be a good leader for your business, you must also be an informed business owner. So, we’ll empower you with all the information you need to make more informed financial decisions for your small business.
When you apply for an unsecured business loan with CreditEnable, we check your loan eligibility by doing a soft pull of your Experian credit report. This pull has zero impact on your credit score and protects your credit score. If you are eligible, we’ll ask for your loan documents and then match you with the perfect loan product and lender. We’ll support you throughout the loan underwriting process and ensure you get the best loan terms possible.
We’ve helped SMEs get unsecured business loans with interest rates starting at 14% in just 2-3 days! CreditEnable may be able to help you too!
Business Loans. Enabled Simply.