{"id":6393,"date":"2020-09-21T05:06:49","date_gmt":"2020-09-21T05:06:49","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=6393"},"modified":"2023-10-26T05:52:22","modified_gmt":"2023-10-26T05:52:22","slug":"which-types-of-businesses-are-eligible-to-opt-for-a-business-loan","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/which-types-of-businesses-are-eligible-to-opt-for-a-business-loan\/","title":{"rendered":"Which Types Of Businesses Are Eligible To Opt For A Business Loan?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">It is quite easy to conceive a business idea and set up a company. But what\u2019s difficult is to manage finances, healthy working capital, and sufficient cash flow to fund business operations and day-to-day transient requirements smoothly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Acquiring capital has always been a challenge for business owners. What\u2019s even more difficult is maintaining proper <a href=\"https:\/\/www.kredx.com\/what-is-working-capital\/\">working capital flow<\/a>. At times of unprecedented financial crunches, you can opt for suitable <\/span><b>business loans<\/b><span style=\"font-weight: 400;\"> to keep your company up and running comfortably.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It will thus help to know if your business is eligible for a loan. Elucidated below are the types of businesses and enterprises that can apply for a business loan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are several types of <\/span><b>businesses<\/b><span style=\"font-weight: 400;\"> that can avail a loan. Few of these are:<\/span><\/p>\n<ul>\n<li><b>Small Home-Based Product Ventures<\/b><\/li>\n<li>Small Service Ventures<\/li>\n<li>Small Sole Proprietorship Concerns<\/li>\n<li>MSME Enterprises<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">According to a Q1 2020 report by MSME Ministry, India has 6.33 crore MSMEs, largely dominated by micro industries. Business loans play a major part to fuel the accelerated development of this sector, thus contributing to the nation\u2019s GDP. Let\u2019s now talk about <\/span><b>businesses<\/b><span style=\"font-weight: 400;\"> that are eligible to avail a loan.<\/span><\/p>\n<ul>\n<li>\n<h2><b>Small Home-Based Product Ventures<\/b><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even if you run a small-scale home-based venture, you are eligible to avail a business loan. On top of that, holding a GST certificate can further fast-track the loan application and approval processes. Small Home-Based Product Ventures include candle making, baking services, gift items, pickle making, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although operational costs for such ventures are not staggeringly high, healthy cash flow is still crucial to purchase raw materials and cover delivery charges. Hence, <\/span><a href=\"https:\/\/www.kredx.com\/business-loan\/\">business loans<\/a><span style=\"font-weight: 400;\"> can be of great help to such vendors.<\/span><\/p>\n<ul>\n<li>\n<h2><b>Small Service Ventures<\/b><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As opposed to the preceding category, small service ventures require low running expenses but a significantly high set up cost. Such businesses include social media management services, website development etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Business owners who are GST-compliant are eligible to apply for <\/span>business loans<span style=\"font-weight: 400;\"> from financial lenders who offer attractive interest rates to make repayment affordable as well as convenient.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you hold the license or corresponding certificates, you can still apply for a business loan.<\/span><\/p>\n<ul>\n<li>\n<h2><b>Small Sole Proprietorship Concerns<\/b><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In contrast to the previous two categories, these businesses are operated from a commercial property. Hence, the set-up, as well as running costs, are significantly higher. These are inclusive of service-based businesses, including professions like doctors, spa owners, technicians and tax consultants, among others.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you hold a Shop and Establishment or Gumasta license, you are eligible to apply for business loans to ensure healthy cash flow and comfortable business operations.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h2><b>MSMEs<\/b><\/h2>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This business category includes all micro, small and medium companies such as software firms, distributors, manufacturers etc. Undoubtedly, these are labour-intensive and cost-intensive <\/span><b>businesses<\/b><span style=\"font-weight: 400;\"> that require high operational costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Business owners in this category can apply for loans from lenders to fund and streamline multiple business processes and thus avoid unforeseen financial troubles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They can also leverage their unpaid invoices to avail <a href=\"https:\/\/www.kredx.com\/bill-discounting\/\">bill discounting services<\/a> to keep operations up and running.<\/span><\/p>\n<h3><b>Bottom Line<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It is challenging to streamline business operations, especially in the face of financial troubles. However, if you are eligible, you can quickly avail <\/span><b>business loans<\/b><span style=\"font-weight: 400;\"> to meet all operational requirements without any hassle.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is quite easy to conceive a business idea and set up a company. But what\u2019s difficult is to manage finances, healthy working capital, and sufficient cash flow to fund business operations and day-to-day transient requirements smoothly. Acquiring capital has always been a challenge for business owners. What\u2019s even more difficult is maintaining proper working [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6400,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[52,49,74,433,58,1185,77,1186,38],"class_list":["post-6393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-loans","tag-businesses","tag-cash-flow","tag-gst","tag-loans","tag-micro-industries","tag-msmes","tag-small-service-ventures","tag-working-capital"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/6393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=6393"}],"version-history":[{"count":1,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/6393\/revisions"}],"predecessor-version":[{"id":13727,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/6393\/revisions\/13727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/6400"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=6393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=6393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=6393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}