Category Archives: Fintech NBFC

small business loan

5 Goals to Achieve with a Small Business Loan

Business problems are inherent in every business journey – 8 out of 10 problems are said to have stemmed from the lack of finances in the business structure. However, with the emergence of digital lenders such as TAB Capital, small businesses are turning to unsecured business loan for financial support, in times of severe cash crunch.

A small business loan not only helps you fix the financial stability of your business, but also backs your capability to resolve other business issues. The money borrowed for a business purpose through a small business loan has no restrictions in terms of usability, as long as it caters to your business purposes ONLY. So, to shoot up your business growth to newer levels of success, it is extremely crucial to chalk out a strategic plan before putting the money at work.

Let us look at the top 5 goals you can achieve with your small business loans.

  • Purchasing Equipment – The right equipment can help you stay prone to business downturns. Along with improving your business efficiency and ability to innovate, it also helps you escalate production cycles. Unlike large scale business setups, small businesses face severe challenges when it comes to purchasing machinery for upgrading business performance.  But the good news is that small business loans, specifically targeted at SME and MSME needs, are emerging as the best financing option for small businesses in unfavorable situations.
  • Business Expansion – Business expansion is a crucial benchmark to achieve, especially when you are still finding your ground to make a mark in the market. Hasty decisions to scale up operations typically backfire! So, before you start crossing the line to make new amends in your business setup, make sure you have a sturdy plan of action in hand. You can go ahead with a small business loan thereafter. It might just turn around the financial future of your company!
  • Inventory – If your business is faltering in terms of turnaround and output, it is time to invest in good inventory. There is no alternative to purchasing adequate inventory so as to push sales and business growth. So, if you are looking to scale up your business operations, inventory is the primary asset that you should invest in before anything else.
  • Operational costs – If you think that your business is prone to facing a sudden turn down due to lack of operational efficiency, you may consider taking a small business loan right at the moment. From paying electricity bills to employees’ salaries, a small business loan can help you resolve all these issues.
  • Grab new business opportunities – Opportunities always do not come knocking at your door. But when they do, make sure you do not miss out on them. Say you’ve cracked a deal that can create a big difference for your company in the long run. But you are falling short of the right amount of inventory and equipment. Would you be willing to give up on a golden chance? Opting for a small business loan and accomplishing all your targets would mean a lot more than regretting over a ship that has already sailed! Right?

No matter what, money should always be handled carefully. Only then, can it bring back greater returns to you in the long run.  So, plan your approach as per your business interests and never go overboard.

TAB Capital offers customer-friendly Online Business Loan to small businesses without any collateral. With TAB Capital’s revolutionized digital lending system, you can apply for an unsecured business loan from the comfort of your home, and enjoy optimum benefits of attractive interest rates, maximum loan amount, flexible repayment tenure and superfast loan disbursal!

To apply for an unsecured business loan with TAB Capital, Click below on Apply online.

7 Tips to Grow Your Business With Unsecured Business Loan

No matter how big or small your business is the right influx of capital is the only prerequisite that can keep your business running without any bottlenecks. The more capital your business makes use of, the better you do in terms of output and turnaround. Sometimes, small business units tend to suffer a lag due to a dearth of cash. In difficult times as these, SMEs and MSMEs tend to turn to business loans. A business loan is the key to solving all your business problems stemming from finance issues. While many financial institutions ask for collateral in lieu of a business loan, TAB Capital offers small businesses unsecured business loans without any collateral in just 2 days! Boons of digital lending are many – the primary facet being quick assistance to your business needs!
Let us now look at the 7 ultimate tips which can help you use your unsecured business loan to grow your business.

Business Expansion

If you are planning to scale up your business operations, an unsecured business loan can help you in a lot of ways. But, before anything else, you must have a plan at hand, so as to execute things smoothly. You can identify the gaps keeping your business way from a better performance, and thereafter use your loaned money to make necessary amends. You may increase your stock of inventory, or invest in good manpower for a better turnaround in the long run.

Infrastructure Development

Infrastructure is one of the primary needs for businesses to function properly. Since it is the backbone of any business, one should never compromise on negotiating good infrastructural setups with cheap substitutes. Many businesses such as factories and manufacturing units are on the lookout for larger spaces in order to set up their business structure. On the other hand, businesses who do not own a lot of inventory make do in smaller spaces. As and when the requirement demands, every business setup calls for modification to sustain a healthy functional unit. If you too are looking to stay ahead in terms of business output and impression, invest in quality infrastructure development with your unsecured business loan.

New Inventory

Poor stock of inventory shall affect your business output sooner or later. So, make sure you have a good stock of inventory which caters to your customer needs. Taking an unsecured business loan to purchase inventory is never a bad idea. It will not only help you meet your customer’s demands but also escalate your production cycle positively.

Operational Costs

Do not let your operational costs affect your business output. Take a business loan and pay off the miscellaneous expenses like accounting costs, buying costs, pending salaries, etc. You can always pay back the loan when your business comes back on track!

Staff Recruitment

In any business setup, good manpower is a must. If you are currently paying 10 employees and doing a decent job, hiring 10 more employees with an unsecured business loan might just open up newer avenues of success and profitability for you! As it is widely known, the more the merrier!

Professional Website

Do you want to be left behind – all caught up between four walls, piles of papers and machinery, while the world races towards digitization? If not, it’s time to jazz up your business presence online. Use your business loan to invest in a good web-developer, graphic designer and UI/UX specialist, who can help you build a new business website and reach out to a wider audience with your unique platter of products and services.

Marketing and Promotion

The fate of your business depends on how well you market your products and services. It is advisable to conduct offline and online marketing to leverage your business sales, and like every other smart investment, this too shall reap greater benefits to you in the long run. Invest in substantive marketing and promotion if you haven’t already.
If by now you have chosen how you intend to use your Business Loan, it is time to look for the best financer who suits your need from all aspects. TAB Capital envisions a pathway of long-term success for SMEs and MSMEs, and harps on providing them with the best of finance solutions. Apply for an unsecured business loan with TAB Capital and enjoy several benefits of maximum loan amount, attractive interest rates, no hidden charges or prepayment charges, long repayment tenure and super-fast loan disbursal!
Let TAB Capital help you grow your business to supreme levels of success!

Business Credit Scores

All You Need To Know About Business Credit Scores

Business credit scores are fundamental in assessing a business’s credit-worthiness. Having a good business credit score helps financial institutions measure the credibility of a business, and extend business loans to them in times of need. Not only do quick finances come handy, but business reputes are also established in the longer run. So, it is always advisable to check your personal and business credit score from time to time to keep a check on your financial position.

How is a Business Credit Score calculated?

A business credit score is calculated based on the company’s credit report. It typically ranges from 0 – 100, and sometimes, also reaches as high as 1800, depending on the type of score.

There are 3 major credit reporting agencies which assess business credit scores. They are Equifax, Experian and Dun & Bradstreet. Each of these agencies has a different approach in computing business credit scores. Most likely, all these agencies extract heavy information from a business’s payment history to suppliers, lenders and creditors.

Let us now understand how each credit bureau calculates a business credit score.

Equifax Business Credit Score

Equifax offers three types of business credit scores, which include Payment Index, Credit Risk Score, and Business Failure Score.

  • Payment Index – The Payment Index is measured on a scale of 100, which reflects the total number of on-time payments made by a company. This type of credit score does not predict the future behavior.
  • Credit Risk Score – Varying from 101-992, this type of score shows how likely a company is expected to become negligent in making payments. It measures the company size, the available credit limits, the tenure of the oldest financial account opened, and invoices of delinquent non-financial transactions.
  • Business Failure Score – Ranging between 1000 and 1800, the Business Failure Score measures the possibility which suggests a business’s final break down. It relies on records which testify the company’s worst payment statuses and credit utilization.

Experian Business Credit Score

Experian’s Business Credit Score pertains to extracting crucial information related to the company’s creditworthiness, such as payment trends, account histories, public records, etc. Some factors which come into account are business time, lines of credit, amounts collected, payment history, available credit, late payments and non-net-30 lines of credit.

Dun & Bradstreet Credit Score

This uses three kinds of risk measurement, which are PAYDEX score, Credit score and Financial Stress score. The Paydex score, ranging between 0 and 100, is based on collated payment data. This data is used to understand a business credit score. Credit Score on the other hand is measured from 1 to 5, with 1 being the best score. This type of score pits a company against the others who’ve had a similar payment history in the past. Lastly, the Financial Stress score matches a business with other companies which share similar business and financial characteristics. It reflects how often a business makes on time vs default payments in comparison to others.

How can you check your Business Credit Score?

It is important to check your credit score before you apply for a business loan. Simply get a copy of your business report from any of the above listed agencies in lieu of a fee, and understand your credit-worthiness.

Key Takeaway

If your business credit score reflects your company’s financial stability, you may opt for an online business loan without any collateral, exclusively with TAB Capital. Get a maximum loan amount of up to Rs.50 Lakh with benefits of minimum paper work, swift online application, attractive interest rates, long repayment tenure and super-fast loan disbursal!

To apply for an unsecured business loan with TAB Capital click below button.

Online Business Loans, unsecured business loans

Here’s Why An Online Business Loan Is A Better Choice For You!

A business needs financing to invest in its growth. Choosing the right Business Loan is very important especially for MSMEs, because it helps an entrepreneur expand his business model by extracting the loan’s optimum benefits. Since the world is turning toward digital lending now, the traditional money lending system, hitherto the most dependable, is eventually taking a backseat now. There are a myriad of online tools available that can help you assess the various kinds of loan products available, based on which you can make an informed decision regarding a new unsecured business loan.  Growing your business exponentially becomes easier when you have the scope of focusing solely on your business plans, rather than wasting a laborious amount of time standing in queues and waiting for your loan request to get approved!

Let us look at some of the most important reasons which attest the importance of digital lending and online business loans in millennial times.

  • More Options Available – While the stringency of traditional lending restricts you to opt for local banks or NBFCs only, an online marketplace gives you a plethora of choices when it comes to choosing a money lender who suits your need the best! You can browse through a digital lender’s loan products; compare repayment schemes and interest rates; and conduct an extensive research on all the available options before taking a call!
  • Easy Application Process – Applying for an online business loan eradicates the need for running to the bank and going through a tedious loan approval process. With a simple on-click solution, an online business loan can be applied for from the comfort of your own home, office or study! Online lenders are available 24/7. So don’t be surprised if you are done with the entire application process in less than 2 minutes!
  • Faster Verification –Developments in the digital space like Aadhar based authentications, digital records of property, facilities of e-signatures and e-banking, has opened up newer avenues in the digital-money-lending scenario. Once you upload the required set of documents to the online lender’s portal, your request is processed through a data and algorithms based activity. There is no scope of delay as there are no hassles of printing and dispensing.
  • No collaterals needed – Most online lenders are open to providing their customers with unsecured credit loans, whereas banks have an aversion to sanction loans without collaterals. They typically insist on disbursing figures worth of machinery, equipment or real estate, so as to anchor the loan. More often, they only provide loans to businesses that earn comparatively higher annual revenues and have good credit scores. Online loans do not bring you such hassles, as you get maximum loan amounts even when there is no collateral or security involved in the process.
  • Quick Disbursal – Since most online lenders automate the entire loan disbursal process through high-end financial technology, getting a loan through to the customer is possible just within 48 hours! A combination of advanced algorithms and flexible approval processes makes the otherwise time-consuming methodology of money lending, extremely quick and customer-centric.

Going by the above-stated reasons, it is but obvious that digital lending has outweighed the backlogs of traditional money-lending, thereby making things simpler for SMEs and MSMEs.

TAB Capital provides unsecured business loans to businesses, which are in need of a financial boost at the earliest! With higher loan eligibility, minimum documentation and loan disbursals within just 2 working days, TAB Capital thrives to provide an optimum finance solution in the digital lending domain. Apply for your online business loan on TAB Capital here!

 

unsecured business loan, Merchant Cash Advance

Merchant Cash Advance – The Latest Trend in MSME Finance!

What is Merchant Cash Advance?

Merchant Cash Advance is a new type of funding designed specifically for small businesses which do a lot of business through card transactions and is in need of some funds on an urgent basis. A funding culture that is widely in vogue in the US and Canada for a long time now, is now getting popular in India primarily for its simplicity and convenience in raising funds by a small business. A Merchant Cash Advance, simply put, is a Loan made to merchants by lenders against their future card payment receivables. Thus, it is either a loan against POS machine Card transaction or MCA.

Why is it an ideal funding option?

Businesses operating in the MSME space, i.e. Micro, small and medium enterprises often lack organized finance options and resort to borrowing from friends and family when urgently in need of cash. For such businesses, provided they have a regular income inflow through card transactions, merchant cash advance is fast becoming an ideal way of funding – Simple, Fast and Convenient!

How does it work?

Let’s take an example to understand this…

If you are a company who has a lot of customers buying products online or offline using their cards, you can take a Business Loan, or a loan against POS machine, against the future business that you will get through such credit card swipes. The lender would give you the loan, which is then paid off automatically over a period of time, when the lender takes a percentage of your daily credit card transaction receipts.

The loan amount that a business can get is determined by its average Debit/credit card sales/transactions which is assessed from their income flow of the previous 6 months. The lender usually ties up with the card payment processor so that the decided percentage of the card sales of the merchant is transferred directly to them. The repayment period starts immediately after the loan is disbursed and ranges from 180 to 360 days. Naturally higher percentage calls for shorter time duration and vice versa.

Merchant Cash Advance – Benefits

A plethora of reasons make loan against card swipe a very attractive MSME finance option. These are:

  • Ease of Application – Just an online form to be filled up and documents such as bank a/c statement, card processing statement etc uploaded
  • Quick Processing – Fintech NBFC financers such as TAB Capital LTD is known for using state-of-the-art technology so that loans can be disbursed within 2 days.
  • Eligibility – More focus on card transaction history
  • Collateral – No collaterals required.
  • Loan Limits – Higher borrowing limits provided than banks
  • Repayment – Since repayment is a certain percentage of your future card receipts, repayment is pretty flexible without any extra pressure on the merchant.

To know more Click Here

Merchant Cash Advance – A Simple & Convenient Finance Option

 

Fintech NBFC - TAB Capital LTD

The Role Played By Fintech NBFC In Transforming MSME Finance!

According to the NASSCOM Start-up report in November 2017, India is currently the world’s 3rd largest start up ecosystem! Against the backdrop of a booming entrepreneurship atmosphere, and thousands of small businesses getting added every year in myriad different industries and sectors, the demand for Fintech NBFC or in other words MSME finance has reached new heights! The current mantra in the business finance scene? – Loans that are Faster, Easier and Affordable!

Digital Lending – The Trend

With the growth of the start-up culture, the new ventures of the MSME sector (Micro, Small and Medium Enterprise), like all businesses, need monetary support. Moreover, in today’s digital era, they need their loans to be economical and affordable, easily procurable, with fast disbursal cycles. In other words, the MSME finance scene in India is seeing a gradual shift from the traditional finance sources to the alternate digital lending sources.

Traditional Business Finance Sources – The Challenges

The 5 most common barriers that small businesses face while taking a loan from a conventional MSME finance source in India, such as banks, government agencies, etc, include:

  1. Assessment of creditworthiness of a borrower by bank officials are done by outdated methods where small businesses get stuck
  2. Loans from traditional finance institutes being secured in nature, require collateral from lenders as security, such as real estate, gold, machinery, investment portfolio, etc. Many a times this prevents small businesses to avail business finance even if they have good prospects for growth with the capacity of timely payback.
  3. Banks are plagued with complicated and complex loan procurement processes which is time consuming and cumbersome
  4. The waiting time for loan approval/disbursal are much higher in conventional banks extending up to months
  5. The interest rate to be paid for business finance from a conventional bank is much higher

An Alternate MSME finance Solution – The Success Story

Against the backdrop of immense technological advancement in recent times, the Fintech (Financial Technology) sector has seen rapid growth and is all set to cross the $2.4 billion mark by 2020 as per the NASSCOM and KPMG reports.

TAB Capital, one of the leading fintech lenders use digital technology to make lending faster, easier and less costly. Specializing in MSME finance, TAB Capital’s work is all about granting a loan against financial statements, bank account transaction history or e-commerce transaction behavior (all of which can be digitally uploaded by the applicant / borrower), within a matter of 1-2 days and at an interest rate that is much lesser than the banks. The creditworthiness of the borrower is assessed using big data along with psychometric tests and social media behavior. The trading position of the business is also taken into account.

As a conclusion it can be safely said that the emergence of the Fintech NBFC for MSME finance is a global phenomenon that is transforming the entire lending model and in turn the business sector in totality. An idea can change the world, and as fast the idea can be converted into reality, more profitable and effective it will be. Gone are the days of the waiting in line for form fill-ups and waiting months to get a loan to have your business see the light of the day. With players in the market such as TAB Capital, monetary support for your innovative business idea is just a click away!

How a Business Loan help you to boost your Restaurant Business

How a Business Loan help you to boost your Restaurant Business

The restaurant business is one of the worthwhile occupation in the current scenario. Food service industry is in full force with the changing economics and lifestyles. However, one needs to understand that the nature of the cash requirement in a restaurant business is quite different. Just to keep the place open with the given menu and the staff needs certain financial standing before any trade takes place. Thus, one can say, a restaurant of today needs financial assistance not today, but yesterday. And, this makes way for the definite route that the ‘prerequisite loan’ reaches the business, namely, merchant cash advance or loan against POS machine.

Merchant Cash Advance: Working Capital Loan for Restaurants

Merchant cash advance lets the business borrow money without collateral. It is one of the best methods of bringing in finance for restaurants which regularly use credit/debit card transaction through POS machine as a standard method of payment.

A merchant cash advance can be of good use for restaurateurs who want to carry on the business with better prospects. So, let’s have a look at the varied purposes for which such cash can come handy.

Renewal or Restoration: The business is up-and-coming and there is an urgent need to improve or expand merchant cash advance rushes to the rescue. One can carry out the repairs or even consider building a new facility with the extra cash. After all, land and building costs can add up to substantial expense.

Staff payments: Do you feel the need to recruit more chefs, cooks or waiters? Merchant cash advance can be effectively used to maintain/extend the employee number to support day-to-day activities in a restaurant.

Business Promotion: Different promotional campaigns are being carried out by innovative restaurateurs for bringing in more business. Restaurants are reaping in profits by hiring marketing agencies and paying them through the merchant cash advance. This step can significantly help to popularize a restaurant.

Kitchen Machinery: Equipment is an essential utility in a restaurant to speed as well as ease out the kitchen operations. Thus, one can take advantage of the ready cash through merchant cash advance to buy or repair kitchen equipment.

Inventory or stock: At times, restaurateurs feel the need for additional inventory in certain situations. The money to stock-up or fill up a restaurant’s inventory can be easily utilized from merchant cash advance.

 

Quick look at Features:

Normally, a restaurant business needs ‘ready cash’ routinely in order to function, maintain or stand up to the varied business needs, however, the fact is that the set-ups are not equipped to deal with such cash requirements.

In these conditions, availing a bank loan for money may sound tedious, time-consuming and impractical. But, a customized borrowing option like merchant cash advance is different. It offers the required money quickly (within 48 hrs), without the hassle of a collateral or the usual formalities.

TAB Capital Ltd. is a leading digital lending FinTech NBFC with distinct financial products for a variety of businesses. A merchant cash advance from TAB Capital Ltd. ensures transparency and minimum processing times.

 

Steps to Get the Merchant Cash Advance Online

  1. Fill the Online Application Form
  2. Upload your documents online
  3. Get funds in 48 hrs

You just have to follow these steps and you are on the way towards your dream fulfillment. Are you a restaurant owner facing similar issues? Inquire or Apply Online TAB Capital LTD