Here is a list of the best financing options for your retail business

To sustain a retail business in India, you need to be driven by a passion to maximize your profitability. And, to transform it into reality, finance plays a vital role, especially during the early years.

Maintaining a consistent cash flow is not always an easy task. If you are planning to start a new retail business, you need to remember that it demands a lot more than one can imagine. From having a strong business plan to obtaining necessary business tools to meeting the unforeseen expenses, the list goes on.

In such scenarios, raising finance from external sources such as business loans is a viable option. If you are an aspiring entrepreneur trying to set up your retail business, you can consider these financing options.

1. Government Schemes

There are several Government schemes and grants to help you grow your business. As of now, there are 50 schemes available to finance small and medium business sectors. Some of the major schemes you may look for are Standup India, Pradhan Mantri Mudra Yojana (PMMY), and Startup India. These are typically long-term loans with low-interest rates. Hence, according to your business needs and demands, you can choose the scheme.

2. Borrowing from relatives and friends

Taking financial help from your relatives or friends also makes sense but you must be extremely careful. Borrowing money from your near and dear ones can be tricky. Therefore, provide relevant documents at the time of borrowing to show your repayment capacity. Also, do not let your monetary arrangement affect your personal relationship with them.

3. Business Loans

A business loan seems to be the best option as it promises immediate funds without any hassles. Unlike traditional loans, credits of this sort do not have a strict process. This is because lenders offer a high loan amount at an attractive interest rate. Moreover, approvals and disbursals are quick. You can check Tata Capital’s website if you wish you avail a business loan.

Some of the major benefits that you can expect are outlined below:

  1. Flexible repayment tenure with easy monthly EMI options for business loan
  2. Unsecured form of credit cutting down the risk of property seizure
  3. Easy-to-meet eligibility criteria with minimum paperwork
  4. Instant approval post verification of the documents
  5. Fast disbursal of money

1. Loan Against Securities

Loan against securities is another option you may opt for. You may avail this loan by pledging your financial securities like mutual funds, shares, bonds, etc. On approval, you can instantly have the money to fund your retail business.

2.  Loan Against Property

This is a form of secured loan where you can get an advance by mortgaging your property. According to the potential value of the property, the loan amount is decided by the lender. Moreover, with such a loan you will also get the flexibility of an overdraft facility.

To run your business smoothly, apply for a business loan today. Make sure to have a budget in mind as both over and underestimation may attract unwanted debts.


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