Although there are several advantages of a business loan for traders, you need to know a few things before you apply for one in this regard. Trading, of course, is a key component of the global economy and the same story is seen in India. As per reports, in the year 2015, trading contributed a whopping 58% of global GDP and this figure has only risen year after year. For the same year, trading contributed 42% of the total GDP of India and this is another trend that continues. Traders who wish to scale up and drive higher revenues require flexible and ready credit for taking care of several requirements. Cash flows for traders are closely linked to overall inventory.
As a result, there is a need to balance out working capital and other requirements by taking business loan for traders.
The interest charged is only on the amount that is utilized and the principal amount can be seamlessly repaid at the end of the loan tenor. Also, one pays only interest as the monthly EMI, thereby lowering overall loan costs and boosting savings for traders. This is an ideal financial product for those looking to consolidate or expand their trading businesses with a loan.
The business loan helps in taking care of inventory maintenance or stocking up on inventory in high volumes to meet requirements. You can scale up overall trading to earn higher revenues if you have proper funding that covers your working capital needs, overheads, upgradation of equipment, business expansion activities, renovation and so on.
Business loans offered by Bajaj Finserv come without any collateral requirements and this is another major benefit for traders.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.