Types of Small Business Loans
Business loans are used for specific reasons: buying equipment or renting space to operate, financing growth of an already proven business, or providing capital to expand.
If your business needs a sum of money to buy equipment or real estate up front, you need a term loan. This is a loan set to terms, meaning there is a set interest rate, down payment or collateral, monthly payments, and a term of months or years that consistent payments will be made through.
Businesses in the startup phase must provide a lot of documentation, business planning, and personal collateral for a bank to be willing to risk lending the funds to your new business. Operations in the growth and expansion stage typically see better results because they have consistent profits or rising sales to prove they have a good chance of repaying the loan.
Lines of Credit
A different type of lending is done through a line of credit. Just like you can tap the equity in your home to finance a purchase, a bank can lend against the value of something in your business as collateral to help finance your operations. Lines of credit are usually more fluid since you may not need to use the maximum of what you are allowed to borrow.
Entire sequence of steps, from the time a loan application is received (or a loan offer is accepted) to the time loan is closed, the loan proceeds are disbursed, and the aggregate amount (principal plus interest) is placed on the lender’s books as an asset.
In today’s market which is fast progressing and with the people lacking time to complete all of their works we need a time saving technology is much appreciated whether it is a loan or something else. the need of the time is the quick process through all the lending agencies. Many times, lenders have to deal with the delayed process due to the manual loan processing system, which in some cases results in losing their prospective customers. In order to avoid this, most money lending and financial institutions are going the way of an automated loan processing system, which in a way help both the customers and the lenders.
Our automated loan processing allows the people to get the quick approval of loans, while at the same time; it allows lenders to disburse the loan amount in quick time and thus resulting in the customer happiness and more satisfaction. In a way it eliminates the tedious tasks of sorting papers or documents and minimizes the costing involved. The key aspects of our automated loan processing system include:
- The reduction in the time involved in the processing of a loan
- Better customer satisfaction and several new product offerings to customers and thus creating a great impact in the minds of the customers
- Better document management and tracking of status on line
- Ability to inquire in quicker time and improve the performance all throughout
- The minimization of the details required and removal of unwanted information requirements
- The minimization of the error involved
- Reduced time in processing and turnaround
Key Features of Truelligence “Loan Management System: There are some key features of our Loan management system. Among the prime ones are:
- Payment collection
- Contract management
- Entity Management
- Extensive reporting
- Managing information for a wide variety
- Collection and accounting for payments
- Offer several tools for loans management
- Customer portal for an efficient dashboard , Transaction statements and Online EMI payments.
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