It is comparatively easier to get finance for existing business than for a new business. The various financing options available for small businesses are MSME loan, Invoice discounting and tradition banking and NBFC loan.
Individuals/Proprietorship, Institutions, Incubation Centers, Companies, Firms, LLPs and any other legal entities are covered under MSME
- In case of business, a micro-unit with the investment of up to Rs 25 lakh, a small enterprise with investment between Rs 25 lakh and Rs 5 crore and a medium one with investment between Rs 5 crore and Rs 10 crore.
- In case of services, the investment limit for micro was up to Rs 10 lakh, for small, the investment cap was Rs 10 lakh to Rs 2 crore and for medium, the limit was Rs 2 crore to Rs 5 crore.
Business Loan In-principle approvals, with /without collateral, are currently provided for value from INR 1 Lac to INR 5 Crore. The Rate of Interest starts from 8.5% onwards. The Platform is integrated with CGTMSE to check eligibility of borrowers. Mudra Loan In-principle approvals are currently provided for value from INR 10,000 to INR 10 Lacs.
TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporate and other buyers, including Government Departments and Public Sector Undertakings (PSUs). Only MSMEs can participate as sellers in TReDS.
Banking and NBFC finance have been the most attractive source of finance. Business loans help your small business grow, allowing you to invest in infrastructure, operations, and plant and machinery. Customized business loans are a new category of business loans which are tailored to meet the specific needs of a new age business or startup. These loans offer your enterprise the opportunity to scale and give it the competitive edge necessary for success in today’s world.
At Bizprof Exchange we provide assistance in making application for financing required for buying a business or profession.