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Health Insurance

How Health Insurance Can Benefit You

In today’s day and age, medical emergencies are a major concern. Since the pandemic, everyone has been concerned about their families. Everyone wants to secure their health. And with health insurance, it is possible. Health insurance can save your family. It offers you better treatment and facilities. It also keeps you from burning a hole in your pocket. Mediclaim Plan Health Insurance is a modern-day tool that helps you feel secure in times of crisis. You can get treated in super speciality hospitals as well! Many are still hesitant to buy health insurance today. The primary reason is the huge paperwork and many terms and conditions. On top of that, there is a lack of awareness of the benefits of health insurance. But we can see the declining health of people and the rising cost of treatment. Mediclaim Plan Health Insurance can save you from costly treatment. Thus helping you manage huge hospital bills. This article will help you make a wise decision. There are many benefits of health insurance. You can select from a variety of policies. Know how a Mediclaim Plan Health Insurance can be a lifesaver for you. Speak with a health insurance agent to learn more. Or, read to know complete details. [B-01] Here’s a list of benefits of health insurance in 2022: Comprehensive Health Coverage Cashless Treatment Exemption from Taxes Everyday Inflation Modern-day Lifestyle Increasing Savings No Claim Bonus Comprehensive Coverage Comprehensive medical insurance provides extensive coverage. It covers all troubles with a lifetime renewability option. You don’t have to buy various health insurance to secure yourself and your family. Comprehensive medical insurance covers a wide range of medical costs. Unlike a basic health insurance plan, this covers various medical expenses. Some covered therapies include organ transplants, painful medical procedures, alternate treatments, and more. Without worrying about hospital charges, you can undergo vital treatments as all hidden costs are taken care of. Benefits of Comprehensive Coverage: In-patient Hospitalization Daycare Procedures Organ Donor Fees Annual Checkups Add-on Covers Cash Cover Pregnancy Cover Pre & Post Hospital Costs Cashless Treatment It is complex and nerve-wracking to run after an insurance firm to recover the cost incurred from your pocket. This requires added hard work. It would help if you don’t have to deal with tons of paperwork, from hospital bills to forms to certificates. Cashless treatment is one of the great benefits of health insurance. Therefore, you need not pay out of your pocket. Many major hospitals are associated with health insurance firms. Hence, it is easy for you to get treated in any big hospital. Exemption from Taxes Health insurance benefits are not just for saving money on hospital bills. They also come with tax help. The premium you pay gets a tax benefit. Section 80D of the Indian Income Tax Act provides the use. The premium paid against your health insurance is deducted from your taxable income. This drops your taxable income. Everyday Inflation Medical costs have risen since COVID-19. This has made hospital costs and premium costs high. Medical expenses can dry up your savings fast if you are admitted without health insurance. The best way to cover the rising cost is to buy early. If you are starting your job, you should plan. Mediclaim Plan Health Insurance is a modern-day tool. Like all other investments, ensuring your family’s health is an investment for tomorrow. Modern-day Lifestyle Health problems are not restricted to basic colds & coughs. Everyone is prone to various conditions, from newborns to adults. Mediclaim Plan Health Insurance can help you secure your future. Everyone believes in investing in the future. Investing in tomorrow’s health is wise. Age does not matter. Today, many young people are suddenly falling sick. You should be ready to face any challenge. Increasing Savings People still believe health coverage is an unnecessary expense. But knowing the benefits of health insurance will enlighten you. It will save you money, and time. Saving on Medical Costs: Medical costs are rising every day. Having health insurance covers you from spending your savings. Essential hospital cost has sky-rocketed in the last couple of years and is still rising. If you do not have an investment plan to take care of the medical costs, you might spend all your life-long savings on it. Cover yourself with a suitable health insurance plan. Retirement Planning: It secures you after retirement. Income sources are falling, and medical costs are rising. Health insurance will cover you in medical crises. It will keep your savings intact. Starting health insurance early can help you plan for the future. Thus, protecting you from medical bills. No Claim Bonus Suppose you have insured yourself with health insurance. But have not claimed it in a year. Then the health insurance company offers you a No Claim Bonus (NCB). It is equivalent to getting a reward for not claiming your health insurance. There are two significant ways how companies offer you a No Claim Bonus: Higher Insured Sum Amount Discounted Premium Rates [B-02] Final Words There are many more benefits of health insurance. A health insurance plan will assure you to lead a stress-free life. A mediclaim plan health insurance will help you feel secure in times of emergency. Taking health insurance is not a loss at all. The crisis is handled with ease. The hospitals have tie-ups with health insurance firms. Therefore, your out-of-pocket expense is reduced. You will benefit a lot from health insurance. Piramal Finance has observed the ever-increasing out-of-pocket expenditure on health. It is offering you tips on how to reduce it. Know more about banking, insurance, and finance with experts from Piramal. You can also get a personal loan at Piramal with the best interest rate. Contact the experts for your personal loan needs.

08-11-2023

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Buy Two Wheeler Insurance Online

Are you looking to buy Bike insurance? You can buy two-wheeler insurance online with ease in a few clicks. Two-wheeler insurance is an insurance policy that offers financial cover for your two-wheelers. This is helpful in emergencies, accidents, thefts, and other damages. This includes motorised two-wheelers such as bikes, scooters and electric bikes. You can protect yourself from unwanted financial losses if you have two-wheeler insurance. You can save money on repairs and costs from accidents or other unfortunate events. It can also provide you with financial security in case of theft. The law requires you to have two-wheeler insurance. The Motor Vehicle Act of 1988 states that the penalty for non-compliance is a fine of ₹2000 and a jail sentence. If your bike is not insured yet, buy two-wheeler insurance online immediately. You can buy bike insurance online without any issues, and it comes with many added benefits. Here are the steps you need to follow to buy bike insurance online. [B-01] Step-by-Step Process To Buy Two-Wheeler Insurance Online Buying bike insurance is very easy today. This is because of the many apps, websites, and online services that can help you buy two-wheeler insurance online. This article will give you a complete guide to purchasing bike insurance online. We have broken down the process of buying two-wheeler insurance. This will help you understand the whole process in simple terms. Let us look at a step-by-step process: Step 1- Know What You Need: It is important to know what kind of two-wheeler insurance policy you need before you can buy any policy. In India, bike insurance plans can be of two types. They are third-party bike insurance and comprehensive bike insurance. You must know which policy of these two works best for you. Third-party insurance only covers losses incurred by someone else during an unfortunate incident. Comprehensive insurance, in contrast, covers third-party damage and all other damage. After you have identified the type of coverage you need, you can get started. Step 2 – Research, Research, Research: Now that you know the type of two-wheeler insurance plan you need, it’s time to research. Research is the most crucial step in buying any insurance plan. You can talk to your family and peers to understand their type of bike insurance. You can also learn about their general experience with their bike insurance provider. This will give you a first-hand and realistic account of the provider. Various motor vehicle insurance providers in India offer a wide range of solutions. You can also compare the different insurance plans online. This can help you find the most affordable plan that suits your needs and budget. Step 3 – Check The Details: After you have shortlisted at least two insurance plans, it is now time to look at the policy providers and their reviews. A few critical factors separate the best two-wheeler insurance providers from the others. Paying close attention to these factors will help you avoid any issues later. Don’t forget to consider the ‘insured declared value (IDV)’ and the ‘claim settlement ratio (CSR)’. IDV refers to the total amount the insurance provider is willing to reimburse. This is in case someone steals your two-wheeler, or you happen to damage it beyond repair. CSR is the ratio of the number of claims paid out by the company to the total number of claims they received. CSR can help you understand the chances of settlement of your claims from the company’s end. Since you are buying your two-wheeler insurance online, reviewing these factors is easy. Before you pick your insurance provider, make sure they meet these criteria. This will make sure that you have a smooth experience when making a claim. Step 4 – Add-Ons and Other Benefits: Understanding add-ons and other benefits are an important part of the process. Opting for comprehensive bike insurance allows you to include some add-ons. These add-ons can come in handy in certain unwanted situations. Many two-wheeler insurance providers offer other benefits and schemes. Some add-ons you can consider for your bike insurance include better coverage. It can help with engine protection, roadside emergency help, and consumables. If you live where floods and other natural events occur often, these add-ons can be very helpful. Selecting add-ons will affect and increase your monthly insurance premium. Make sure you only select the ones you need to avoid paying a heavy monthly premium. Step 5 – Fill Out The Form: You are almost there! Now that you have finalised the policy, it is time to go ahead and buy your bike insurance online. But, there is still an important step left! Don’t forget to review all the legal documents before you start filling out the form. Knowing the legal terms is very important, as it can save you a lot of trouble later. Once you agree with all the terms and conditions, you can fill out the form. Make sure you fill in all the details without any errors. You can contact the insurance company representative to clear out any doubts. At this point in the process, you can trust your insurance representative. They can help make the process easier. Step 6 – Payment: You are now ready to make the payment. To buy two-wheeler insurance online, you need a proper internet connection. Make sure to check your connection before you start the payment. If there are any connection issues, it can lead to unwanted problems. Buying the insurance policy online allows you to choose any payment method you have. [B-02] Final Thoughts Go ahead and buy your two-wheeler insurance online with ease. If you need help with finances, you can always consult the experts at Piramal Finance to help you find the best solutions to finance your purchase, such as personal loans or credit cards. Visit the website to know more.

08-11-2023

How can you avail new business loan schemes for SMEs

SME (Small and Medium Enterprise) loans are a variety of loans that are offered to both small and medium-sized enterprises. These loans are highly flexible in terms of the requirements of both small and medium enterprises. So, opting for a business scheme of SME loans can be beneficial and trustworthy. One of the primary motives of this loan is to satisfy the working capital requirements of the business firms. It mainly targets businesses that specialize in trading, service, and manufacturing sectors, catering to their capital expenditure requirements. All the small and medium businesses that fulfill the obligations set by the MSMED Act of 2006 fulfill the eligibility criteria for SME loans. In India, the top SME loan schemes introduced by the government are mentioned below. Let us read about them. [B-01] SIDBI Make In India Soft Loan Fund for MSMEs (SMILE) By signing up for the SMILE scheme, one gets access to flexible and coordinative terms when they wish to connect with the debt-equity ratio of micro, small and medium enterprises. You can either apply virtually or from the closest SIDBI for small business loans. Availing in this scheme will help you opt for loans between Rs. 10 Lakhs to Rs. 25 Lakhs. In order to extend the loan, you will be charged with the personal guarantees of promoters as well as the overall assets. The SIDBI will need 15% of the minimum contribution by the promoters to make you eligible for the loan. The digital loans and their rates will be determined by the borrower’s profile as well as the amount of loan applied for. Eligibility Requirement Any micro, medium and small enterprise operating for three years and in stable financial condition passes eligibility. Also, the newly set up medium and small enterprises in the service and manufacturing sectors are prioritized. So, small business loans can be granted to newly-established business owners. The maximum period within which one has to repay the default loan is ten years. The business owners who reach out to SIDBI can also go for a 36-month moratorium. RMA Against Bank Guarantee Set up by the National Small Industries Corporation (NSIC), this loan scheme of India grants loans in the form of advanced payments as well as credit options. One can apply for this SME loan to purchase raw materials. Different business units get access to different loan amounts, depending on the sector they are responsible for. A single unit MSME managing the manufacturing sector can go for loans up to an amount of Rs. 6 crores. On the contrary, a group of MSME units who are involved in the manufacturing sector can get access to loan amounts up to Rs. 20 crores. A single unit MSME functioning for the service sector can apply for a loan up to the amount of Rs. 10 crores. On the other hand, a group of MSME units coordinating the service sector can apply for loans up to Rs. 15 crores. Those who are dealing with infrastructure activities can go for loans up to Rs. 5 crores. An MSME can either apply virtually or through the field offices of NSIC. Eligibility Requirements The MSMEs who are in the manufacturing sector and have Udhyam Registration Certificate or Udyog Aadhaar Registration are eligible. MSME Business Loans In 90 Minutes This loan scheme was launched as an initiative of the Atmanirbhar Bharat Campaign. It can be utilized for purchasing raw resources, expanding your firm, diversifying, and scaling your operations. As the name denotes, the transaction can be processed within a period of 59 minutes. A business owner can apply for loans worth between Rs. 1 Lakh to Rs. 5 Crores within a period of 59 minutes. One can get this amount from the most authorized and trusted banks. The transaction takes about eight to twelve business days to process. One can apply for this loan by means of an online portal established by SIDBI. The flexible repayment tenure paves the way for seamless transactions in the way of digital loans as well as other options. Eligibility Requirements A person older than 18 years of age, bearing firms with GST registration along with other required documents like bank statements of the last six months, is eligible for this loan. [B-02] The Bottom Line Going for the top government loan schemes introduced can grant you an immense amount of benefits and convenience. An SME loan can be favorable for those enterprises who wish to meet their capital requirements during the initial stages of their business too. One also gets the choice of applying for small business loans online, making it simple and convenient for users. If you want to reach the banks or apply by visiting the actual financial institutions, you are free to do so too.

08-11-2023

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How Can an SME Loan Benefit Your Business?

For a business to function seamlessly, an appropriate amount of funding is essential. This can be gained through online loans, SME loans, and MSME loans. These loans can range from one month to three years, which you have to repay along with an interest payment. These loans are meant to make the functioning of small businesses easy. Their main goal is to help them grow and expand for our economy’s progress. [B-01] The special features of SME loans include low-interest rates, flexible tenure, and quick sanctions. These make the loans small business-friendly. However, the best feature for small business owners will always be the absence of restrictions on the use of funds. The lenders ask for the fulfilment of requirements that are easy for small business owners. Below are some pointers which you need to know: 1. Fewer Documents Required Whether your SME loan is an online loan or an offline loan, the number of documents required is always going to be less than what regular loans require. SME loans do not require heavy documents like balance sheets, profit and loss statements, owner’s lists, and so on. They only demand basic documents like GST registration and Income Tax Returns, the credit score, business registration deed, and so on. This will help you save some time while you are trying to get a loan sanctioned for your business. 2. Free Of Collateral Online SME loans and regular SME loans are unsecured. This is one of the reasons why small business owners feel secure while opting for these loans. Putting an asset as collateral to get a loan is no hassle. Your business will not have to face any setbacks in its productivity growth or expansion either. SME or SME digital loans will prevent the hassle of having to undergo the documentation of the property or the assets that you would have to give as collateral. There would be mortgage papers to sign that would also consume some time. So, please pay attention to these details. In the event of any complications, do not hesitate to consult your lender. 3. Affordability Of SME Loans Regular online loans or offline loans have the same high level of interest. However, SME loans are issued at a lower rate of interest compared to corporate loans. The lenders will take a thorough look at your business condition, the earnings, the working capital, and the cash flows before concluding on the interest rate that you will be charged. SME loans are designed in a specific way so that small business owners do not have to worry much about loan repayment. These loans aim to assist small business owners in focusing on broadening their business. Some lenders are even ready to decrease or increase the loan repayment amount according to the financial standing of your small business. 4. Flexible SME Loan Tenure All types of SME loans, including online loans, have different terms when it comes to loan tenure and repayment. This is because most lenders have their tenure set from one month to thirty-six months. They offer weekly payments or monthly payment options as well. You can request it from the bank depending on your financial condition at that time. The lenders of SME loans usually try to understand the working capital requirements of a small business and allow bullet payments too. So, the small business owners are relieved of the stress of repayment that they would have to face in the case of regular loans. 5. Quick Sanction of SME Loans Our world is becoming technologically equipped. This provides you with more reasons to apply for online loans instead of visiting banks and financial institutions. The process is very quick and free of any inconvenience. All you have to do is keep soft copies of certain documents ready, apply for the loan, and wait for it to get approved. The loans are usually sanctioned within a day or two. So, you can use them for your urgent financial needs too. 6. Tax Benefits One of the reasons why experts say that SME loans are designed for small businesses is that they come with a certain tax exemption as well. The part of the profit that you use to repay your loan is exempt from tax under the Income Tax Act. [B-02] Ready to Apply for Your SME Loan? SME loans have proven to be one of the best ways to keep your business under your control as they are unsecured. You can use this funding to increase your staff and give them better incentives to facilitate improved performance. The capital can be invested in heavy plants and machinery or the type of asset that your business requires. If you wish to avail an SME loan most easily, apply for an online loan to save your time and the need for heavy documentation.

08-11-2023

Mutual Funds

Best SIP Mutual Fund Plans in 2022

The SIP is a feasible investment method that enables individuals to invest a fixed amount periodically in mutual funds. Investments can be made yearly, quarterly, monthly, weekly, or daily. Mutual funds are purchased with a set amount deducted from the investor’s account. There are several mutual funds with minimum SIP amounts as low as Rs. 100 and Rs. 500. SIP mutual funds are successful investing strategies that enable investors to plan investments based on their needs and financial objectives. Additionally, systematic investment plans teach you how to manage your finances. Mutual funds primarily allow investing via a SIP, a lump sum, or both. [B-01] What is the Best SIP Mutual Fund? Most investors, especially the youth, prefer SIP funds. It allows you to dedicate a small amount periodically instead of investing a large amount at once. The amount of the SIP plan depends on the mutual fund you choose. You can set the SIP amount as low as Rs. 100 per month to as high as Rs. 10,000 per month. The systematic investment plan has many advantages, but one of the most important is that it assures that the investor develops a regular saving routine of a set amount. Investors can consistently invest tiny SIP amounts and generate SIP profits over time. It helps inexperienced or small investors get accustomed to financial planning and is favourable to them. Top 10 Mutual Funds with Minimum SIP You can start a SIP plan in almost any mutual fund. The best SIP mutual fund will depend on your investment objectives, especially the amount you wish to invest. The risk, past performance, potential for future growth, NAV, AUM, tax, and exit load are some other elements that can help you choose the best SIP mutual fund. To make that easy for you, here is a list of the top 10 mutual funds with minimum SIP plans. S. NoMutual FundAUMExpense Ratio3-Year Return5-Year ReturnMinimum SIP1.Nippon India Growth Fund Direct-GrowthRs. 13,225 crores1.2%32.55%23.30%Rs. 1002.Nippon India Small Cap Fund Direct-GrowthRs. 21,655 crores1.02%43.67%28.80%Rs. 5003.IDFC Sterling Value Fund Direct Plan-GrowthRs. 4,906 crores0.85%35.65%22.12%Rs. 1004.ICICI Prudential Equity & Debt Fund Direct-GrowthRs. 20,360 crores1.24%26.89%19.66%Rs. 1005.Sundaram Multi Cap Fund Direct-GrowthRs. 1,903 crores0.97%27.77%0.97%Rs. 1006.SBI Bluechip Direct Plan-GrowthRs. 34,043 crores0.95%21.05%16.12%Rs. 5007.UTI Mastershare Direct-GrowthRs. 10,570 crores1.04%19.80%15.96%Rs. 1008.HDFC Flexi Cap Direct Plan-GrowthRs. 30,473 crores1.05%29.36%19.68%Rs. 1009.ICICI Prudential Bluechip Fund Direct-GrowthRs. 33,739 crores1.05%21.36%16.23%Rs. 10010.IDFC Core Equity Fund Direct-GrowthRs. 2,416 crores0.85%24.06%17.02%Rs. 100 Types of SIP Plans Top-up SIP You can gradually increase your investment amount with this SIP plan. This plan also allows you to maximize your SIP mutual fund investment by making periodic contributions to high-performing mutual fund schemes. You can increase the amount you invest as you deem suitable. Perpetual SIP If an investor leaves the end date blank on the SIP form, the SIP runs indefinitely. Investment can always be withdrawn as needed. But to preserve financial restraint and achieve financial objectives, it is usually advisable to choose an end date for SIPs. Flexible SIP In this SIP plan, you can alter your investment amount per your cash flow. You can skip one or more instalments if you run into financial difficulties. And, when you earn a bonus or increased income, you can also contribute more to your SIP account. Trigger SIP These SIPs plans are the best for beginners. Investors can set the NAV, index level, start date, and termination date. However, this kind of SIP fuels speculation and is frequently discouraged. Benefits of SIP Mutual Funds SIP mutual funds have many significant benefits; some of them are: Low-cost Investment The best SIP plan lets investors with limited capital increase long-term returns by utilizing their small monthly payments. With as little as Rs. 100, investors can begin investing in SIP mutual funds. Additionally, there is no upper limit on the maximum investment amount in SIP investments. Rupee Cost Averaging Investors do not need to time the market because they can purchase more units when it is performing poorly and fewer units when it is performing well. This factor lowers the overall investment cost. SIP Flexibility You have total control over your investments with the best SIP investing plan. A SIP can be started or stopped whenever you like. A SIP can also be put on hold and then started back up at a later time. You won’t find this kind of versatility with any other investment plan. Power of compounding In contrast to investing in a bulk payment, the investment automation provided by SIP ensures you never miss out on your investments. Small contributions add to a sizable corpus over time, and rewards are compounded. Better Financial Discipline SIP investment plans encourage participants to develop disciplined investing habits by compelling them to make regular, predetermined investments of a set amount of money at predetermined periods. Additionally, investors cannot skip an investment with the option of automatic payment because the money is automatically debited from the bank account. Mistakes to Avoid Before Investing in SIP Plans High Investment Amount You can invest tiny sums of money consistently in mutual funds through SIPs, so be careful not to choose an investment quantity that you might not be able to maintain for the remainder of the year. Unrealistic Investment Goals Immature investors sometimes establish improbable investment targets before regretting them. You must not set unrealistic goals for the future of your current investment. Instead, you want to plan on average returns and keep making regular investments. Discontinuing the SIP Investors should constantly remember that to maximize returns, equity mutual fund investments should be made with a long-term perspective. If your portfolio is losing money, it is best to disregard it and keep going with the SIP. Not monitoring the SIP Regularly Investors frequently make the error of neglecting to track or keep an eye on their SIPs. Remember that regular monitoring is necessary for even the best funds with the best fund managers. [B-02] Conclusion One of the most impressive aspects of SIP investment is the possibility to invest as little as Rs. 100 every month. By keeping the minimum requirement low, the scope automatically grows. Mutual fund investments are viable for those with a small corpus, including young adults just breaking into the workforce and even kids who depend on their parents for pocket money. You can read other blogs on the website of the financial expert, Piramal Finance. Learn more about mutual funds and investment opportunities with us and get help with personal loan requirements if any.

08-11-2023

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How to Get an Instant Approval for Small Business Loan

If you’re like most small business owners, you will be looking for ways to grow and expand your business. But sometimes, that can be difficult when you don’t have the financial resources to do so. That’s where a small business loan can come in handy! This blog post will teach you how to get approved for an instant approval small business loan. So, if you are ready to take your business to the next level, keep reading! [B-01] Pros of Instant Approval Loans Ideal for Emergencies The biggest advantage of an instant approval loan is that it can quickly provide the funds you need. It can be a lifesaver if your business is having an emergency, such as a major repair bill or a lawsuit. Because the application and approval processes are so fast, you can get the money you need to resolve the issue quickly and get back on track. This type of loan can also help you take advantage of opportunities that come up unexpectedly, such as a new product launch or a big contract. Less Paperwork One of the best things about an instant approval small business loan is that it requires far less paperwork than a traditional bank loan. You won’t need to provide extensive financial statements or a business plan. Instead, you’ll need to fill out a short application and provide basic information about your business. This makes applying for a business loan a much simpler process than applying for a traditional bank loan, which can be lengthy and complicated. Cons of Instant Approval Loans Less Regulated Because they are a newer type of lending, instant approval loans are not as heavily regulated as traditional loans. This can be both good and bad. On one hand, there are fewer restrictions on how you can use the loan. On the other hand, it also means that the lender has more leeway in terms of fees and interest rates. Higher Interest Rates The average interest rate for an instant approval small instant business loan is higher than the rates offered by traditional lenders. This is because instant approval loans are considered to be high-risk loans. When you apply for an instant approval loan, the lender will typically require you to provide collateral. How to Get a Quick Business Loan? Business loan instant approval can be a long and tedious process, especially if you don’t have all the necessary documents. However, some lenders offer instant approval of business loans. Here’s how you can apply for one: Research different lenders that offer instant approval business loans. Make sure to compare interest rates, repayment terms, and eligibility requirements. Choose the lender with the most favourable terms and apply for the SME loan. Be prepared to provide personal and financial information and your company’s financial statements. If approved for the loan, the funds will be deposited into your account within a few days. Use the funds wisely to grow your business. With instant approval from a business loan, you can get the funding you need quickly and without hassle. Just make sure to do your research before applying to choose the best lender for your needs. Instant Approval Financing Alternatives 1. A business line of credit A business line of credit is a pre-approved loan amount you can draw from as needed. This type of financing is best for companies with ongoing or seasonal working capital needs. Advantages You only pay interest on the amount you borrow Funds are available as you need them It can be used for a variety of purposes 2. Business credit card A business credit card can be a good option for small businesses with short-term working capital needs. Advantages Can help you build business credit May offer rewards or cash back on purchases It can be used for a variety of purposes 3. Invoice factoring Invoice factoring could be a good option for you if you have a steady stream of invoices. With this financing, businesses sell their invoices to a lender at a discount to get cash up front. It can be a good option if you need funding quickly and don’t have time to wait for your customers to pay. Advantages You can get funding quickly It’s easy to qualify for There are no restrictions on how you use the funds 4. Merchant Cash Advance A merchant cash advance could be a good option if you’re looking for an instant approval small business loan. With this financing, you can receive an advance on your future credit and debit card sales. There are a few things to remember when applying for a merchant cash advance, such as the amount of money you need and your monthly sales volume. But if you have a strong business with consistent sales, a merchant cash advance could quickly give you the funds you need. [B-02] The Bottom Line If you’re looking to apply for an instant small business loan, you can do a few things to increase your chances of being approved. First, make sure that you have a strong business credit score. Second, be prepared to provide collateral for the loan. And finally, apply for the loan through a lender specializing in small business loans. By following these tips, you’ll be on your way to getting the funding you need to grow your business.

08-11-2023

What you Need To Know About Financing a Business Acquisition

Acquisition financing can be an unquestionably helpful choice for many organizations. Here with Piramal Finance you will get the detailed information for it. You’ll need to finance the acquisition if you’re looking to purchase a business. There are many different ways to finance a business acquisition, and each option has its benefits and drawbacks. It’s important to understand the different types of loans available. MSME loan is a type of loan that is specifically designed for small and medium-sized businesses. This type of loan can be used for various purposes, including financing a business acquisition. [B-01] Another option is a business acquisition loan, a type of financing designed explicitly for this purpose. It’s important to research all your options before deciding on the right loan for your needs. In this article, we will discuss everything about financing a business acquisition. Let’s get started. Pros of Purchasing an Existing Business Avoiding the initial stage The business has already been established. This includes customers, suppliers, and staff. You don’t need to hassle finding the right people and building a customer base from scratch. Purchasing an existing business means you can hit the ground running. The business will have an operational history that you can use to your advantage. This is especially helpful if you’re looking to acquire a business in a new industry. Instantaneous cash flow One of the first things business owners consider when acquiring another business is how the transaction will affect their company’s cash flow. An acquisition can be a great way to improve your business’s cash flow instantly, but it’s important to understand how the financing will work before you commit to anything. Faster expansion One of the key benefits of the acquisition is that it can help you expand your business much faster than if you were to grow your business organically. You instantly increase your customer base, product offerings, and market share when you acquire another business. Accelerates growth One of the most significant advantages of business acquisitions is that they can help you rapidly grow your company. If you’re looking to expand into new markets or product lines, acquiring another business is often the quickest and most efficient way. Additionally, business acquisitions can help you fill gaps in your current operations, giving you a more comprehensive and well-rounded business. Increases your market reach The business acquisition can help you expand your market reach. This can be especially beneficial if you’re looking to enter a new market or tap into a different customer base. By acquiring another business, you’ll instantly have access to their existing customer base and can start marketing your products and services to them right away. Access to knowledge The best thing about business acquisition is that you can learn a lot from the business you acquire. This is because you will be able to access the business owner’s knowledge and experience. You can also get access to the business’s financial information. This will allow you to make better decisions regarding the business acquisition. Business financing is readily available You can get business financing from several sources, including banks, credit unions, and online lenders. The type of business financing you choose will depend on many factors, including the amount of money you need to borrow, the terms of the loan, and your financial situation. Ways to Finance a Business Acquisition Business owners have a few different options for financing a business acquisition. They can use their savings, take out loans, or bring on investors. Here are some primary ways to finance a business acquisition: Term loans A term loan is a loan you pay back over a set period, usually between two and five years. The loan length will depend on the amount of money you borrow and your business’s financial stability. You’ll need good credit and a strong business plan to qualify for a term loan. Term loans can be a good option for business owners who need a large sum of money to finance their business acquisition. SBA loans The Small Business Administration (SBA) is a government agency that supports small businesses. One way they do this is by guaranteeing loans from commercial lenders. This means that if you default on the loan, the SBA will pay back the lender. Leveraged buyouts Leveraged buyouts are one of the most common ways to finance a business acquisition. In a leveraged buyout, the buyer takes out a loan to cover part of the purchase price. The rest of the purchase price is covered by the equity from the business being acquired. Crowdfunding and peer-to-peer lending Crowdfunding and peer-to-peer lending have become popular alternatives to traditional business financing. These options allow you to tap into a network of individuals willing to invest in your business. Crowdfunding is a great option if you’re looking to raise money for a specific project or goal. [B-02] The Bottom Line The business acquisition can be a great way to grow your business. But, as with any significant purchase, it’s important to do your homework and understand the financing options available to you. With a bit of planning and preparation, you can find the right financing solution for your business acquisition.

08-11-2023

Tips & Advice

A Complete Guide to Business Acquisition Loans

Purchasing another business or franchise can be a pretty big task and would involve a great deal of commitment, especially if it has true potential and goodwill. There are several factors to consider while acquiring an entire business, but the benefits of this business loan are numerous. [B-01] What Do You Mean by ” Business Acquisition Loan “? A business loan for acquisition refers to a commercially significant type of funding that is granted either to purchase an existing business or to set up an entire franchise. Here, the amount to be borrowed as well as the rate of interest charged on it depends on the nature of the business you are purchasing as well as your own qualifications. Such loans range approximately from Rs. 5 lakhs to Rs. 5 crores. Qualifications for Business Acquisition Loans The decisions regarding the acquisition of a franchise or business firm made by lenders depend on the nature of the business you will be purchasing. But it also depends a great deal on the individual’s finances. The lenders tend to analyse your finances and what you own beforehand. Lenders have to carefully analyse and examine the financial and individual history of the borrower to check the candidate’s suitability for being granted this loan. They do so to test the person’s capabilities and whether they possess the required qualifications. Personal Credit Score The first thing the lender checks is whether the borrower’s credit score is up to the mark or not. The person would possess a credit score of 650 to 690. So, please focus on this when you are obtaining a business loan. It is bound to help you in several ways to analyse many factors. Credit Score of The Business The financial history of your business and its credit score are crucial factors in determining the rate at which you will obtain the business acquisition. One can determine your business’s credit score through your payment history, new credit, amount of debt, types of credit utilized, and length of previous credit history. This will ensure whether you are eligible for business acquisition. Valuation Of Business Your lender might ask for a business acquisition loan, your business to achieve an adequate price to obtain a business acquisition loan. This will be done by an independent firm that specializes in valuation. Providing Tax Returns The lender will also ask you for your tax returns for the last three years. In addition to this, you are also liable to provide three years of corporate tax returns on the franchise you are willing to purchase. Your Aspirations Towards the Acquiring Business You will also be asked to put forward your business plan for the business you are choosing to acquire. They will do so to judge whether you have the right plans and strategy to make your business grow and become profitable. How To Apply for A Business Acquisition Loan? Seeking counselling from company mergers will allow you to get more knowledge about this kind of loan. You can select from a variety of lenders and banks who can grant you this loan without any hazard. You can now choose from numerous business acquisition financing options. Your chances of qualifying for the loan depend ultimately on the nature of the loan you are willing to obtain. The documents required to acquire this loan for a business are Business Tax Return, Business License, Balance Sheet, Business Plan, Bank Statement, Business Debt Schedule, Personal Tax Return, and Business Lease Statement. The first step toward applying for a business loan will be to evaluate your qualifications and make sure that they match the requirements of the lenders. The lenders who offer a large amount as a loan often tend to carefully analyse your personal and business-related documents before granting you the loan. After carefully screening and examining the options available, go with the most suitable loan for your needs. This will allow you to get hold of the loan you are sure to obtain. There are a variety of loans you can choose from- Traditional Term Loan, SBA Loan, Seller Financing, Online Term Loans, and many more. [B-02] The last step on your part will be to complete the application process and present it in front of the lenders. For this, you will have to get hold of all the documents necessary for business acquisition. Get Hold of The Benefits of Business Loans at The Earliest If you have access to all your required documents and have the desired qualifications set by the lenders, you will get this loan from the company mergers in no time.

08-11-2023

Tips & Advice

How To Improve Your Cibil Score?

A good credit score is a much-needed aspect when looking to obtain a loan. Financial crunches can crop up at any point in time and one may feel the need for money to cater to varied needs. It is at this time that a personal loan or quick loan can come in handy. However, possessing a good CIBIL score is mandatory in order to ensure that you can get your loan approved without much hassle. [B-01] What is CIBIL Score? CIBIL score is the score that depicts your credit history and is dependent on a number of factors such as your repayment history, the number of unsecured loans you have, non-repayment history among others. The ideal CIBIL score is 750 and often those with lesser Credit scores find it difficult to obtain a loan when they need it. Therefore, in times when you are in dire need of money, you may be faced with the dilemma as to “How to improve my CIBIL score?” Even though your credit score may not be at level, there are ways you may adopt to improve it. Read on to know more about how to improve your CIBIL score. Make Your Payments On Time One of the major causes of lower credit scores is the delayed payment of your credit card bills. Hence, one of the first things to do is to pay your credit bills before the due date so that they do not end up with increased interest rates. If you are someone who tends to forget, set reminders that would remind you to repay your bills on time. Automated systems are also helpful in ensuring that your loan repayment amount or EMIs are deducted from your bank every month automatically. Maintain A Balance Unsecured loans comprise credit cards and personal loans, while secured ones encompass home and auto loans. Credit-lending companies prefer offering loans to individuals with secured loans than those with unsecured loans. While the latter comes in handy in different situations, it is worthwhile having at least one secured loan along with the unsecured loans that you may need to cater to varied financial requirements. This boosts your credit score automatically. Be Aware Of Any Errors In Statements At times, even after closing a loan, the bank may not have issued a No Objection Certificate which is evidence of your loan being closed from your end. In that case, your loan repayment schedule may reflect as ‘ongoing’ and you may be shown as a current customer. This may affect your Credit score just like many other suspicious activities which you need to keep reviewing from time to time. Check Your Credit Limit It is always advisable not to reach the maximum limit of your credit usage as this has a negative impact on your CIBIL Score. If you feel your expenses on credit cards are more, it is better to customize the limit in sync with your predicted expenses. Do Not Take Too Many Loans Taking too many loans simultaneously only labels you as ‘a borrower who does not have enough funds and may turn out to be a defaulter while not being able to manage them all at once’. It is therefore better to take one loan at a time and pay it regularly to improve your CIBIL score. Opt For Longer Tenures When taking a loan, opt for longer tenures. This will ensure that you have more time to pay your dues off and the installment amount will also be lower, thus making it easier to repay. Having loans and credit cards in your name does not affect your credit score negatively. That is, as long as you know how to use it prudently and maintain your repayment record in a disciplined and organized manner. Once your score reaches a good level, you will be in a position to acquire the right loans easily to meet your financial requirements. [B-02] Summary Being in debt does not mean a negative thing- financial crunches are natural. It pays to know the right ways to make the best of your loans and credit cards in order to maintain a good CIBIL Score.

08-11-2023