MSME Funding Options Are Plentiful When You Know Where to Look

Are you looking for MSME funding? There are several options available including MSME loans, short-term funding options and lots more. Here’s taking a look at some of the choices available in this regard-

• Business Loans- There are several MSME financing available for MSMEs to take care of immediate requirements. Bajaj Finserv, for instance, offers business loans (collateral-free) up to Rs. 30 lakh at low rates of interest. You only need 2 documents to obtain your business loan within 24 hours. 
• Bill Discounting- This is an option where the funds will come on the basis of the organization’s credit sales. The lender will be discounting your bill and offering funds accordingly. The customer will have to provide all invoices with clients and other third parties. No collateral will be needed for these loans.
• Short-Term Finance- Overdrafting is another option in case you have a current account. This is a short-term solution where a higher amount is withdrawn as compared to the amount deposited in the account. Letters of credit is another solution where an assurance is given to the seller by the lender for getting the amount that the buyer deposits. Bank guarantees are other short-term options for getting funding.
• Loan Against Property (LAP) - These are secured loans where interest rates are lower and you can get up to 50-60% of the value of the property mortgaged as the loan amount.
• Venture Capital- You can draw investments from venture capitalists who will naturally seek out MSMEs that are expanding and venturing into profitable business segments.
• Angel Investors- These are people who pump in investments for MSMEs, often through dedicated groups/funds. They will naturally take equity in the organization along with guiding the founders/management.

P2P Lending- Peer-to-Peer Lending is another means of obtaining necessary funds for one’s business. Loans can be applied for easily and the rates of interest are on the lower side.

​Also Read: MSME Funding Options are Plentiful When You Know Where to Look