Corporate loans are designed to help companies get additional funds, be it for expansion, upgrading or just for daily operating costs.
There are two types of corporate loans, unsecured and secured. Secured loans require businesses to place an asset as a collateral, and the amount they get as funds also depends on the collateral. The rate of interest for secured loans are lower compared to unsecured loans. however, companies also have more time to pay it back. Since, the lenders have an asset as security.
On the other hand, unsecured loans can be obtained only when a business has a good credit rating. The amount for this loan is provided quickly by the lenders, and this loan is availed only when companies require immediate funding.
Benefits of corporate loans
Unlike other loans, corporate loans do not require a lot of paperwork. Businesses which are properly created and managed with proper documentation, registration, and licenses are able to get corporate loans quickly without much hassle. With 12 to 48 months of time to pay back the loan amount as well as interest, most businesses with good credit score, are able to easily make the payments within this extended time period.
If you are facing problems getting a corporate loan, contact us at Arthavidhi and our experts will assist you in successfully getting a corporate loan for your business.
