Late payments from clients, a temporary recession in business, increase in utility bills, etc. are some occasions when you may face a cash crunch in your business. Running out of cash can hamper smooth operations of your CA practice. In such situations, a flexi business loan is a prudent funding option. Here's how this loan helps you tide over a cash crunch.
Being an unsecured mode of finance, flexi business loans are collateral-free. Hence, you don't have to put your assets on the line for this loan. Pledging a collateral is no easy task and it’s even more difficult in the formative years of your practice. Yourcredit score determines the flexi loan limit and minimum documentation ensures a faster approval process (within 24 hours).
Thus, you get immediate access to cash. Bajaj Finserv offers a flexi business loan up to Rs. 35lakh with a flexi loan facility. Quick disbursal and availability of funds ensure that you can take care of your immediate needs.
Withdraw Funds as and When Required
Gauging the exact amount of money required may be difficult, particularly in situations when you are expanding your practice. A cash crunch during expansion may hurt your plans.
However, flexi business loans with flexi loan facility allow you to make several withdrawals as and when required from the approved flexi loan limit.You don’t need to make multiple applications to withdraw money from your loan account.
Interest Only on The Amount Utilised
The interest rate on the entire loan amount pushes up monthly EMIs. This acts as a double whammy during a cash crunch. However, for flexi business loans, you need to pay interest only on the amount utilised and not the entire approved flexi loan limit.
This is unlike term loans, where you need to pay interest on the entire loan amount. Thus, flexi business loans bring down your monthly EMIs, giving you the much-needed breathing space.
Competitive Interest Rate
A high rate of interest dampens confidence of borrowers. However, flexi business loans available at a competitive interest rateallay worries of high rate and EMIs. Also, the flexi interest-only loan variant allows you to pay only the interest component of the EMIs. This further cuts down your EMIs and aids in savings. This helps in boosting the cash flow for your practice.
Chalking a Convenient Repayment Strategy to Boost Credit Score
Flexi business loans allow you to chalk out a convenient repayment strategy. Loan repayment on time strengthens your credit score, which helps you get access to a higher flexi loan limit in the future. This also builds credibility and trustworthiness that eases future borrowing exercises at better rates.
As evident, flexi business loans not only help you stay afloat during a cash crunch but also take care of pressing issues of high EMIs and loan repayment.Be it addressing liquidity woes or undertaking initiatives to expand your practice, flexi business loans are your most trusted partner in your venture.
To know more about Flexi Business Loans for tax consultants, click here.
To know more about Flexi Business Loans for CAs, click here.