Most entrepreneurs or those in the corporate environment know how hard it is to start a business, let alone maintain and run one. There are a thousand things to be dealt with, while limited resources, manpower, and uncertainty always pose short-term barriers. In its struggle period, every startup has to bear some expenses which require an initial investment. These are sometimes difficult for founders to muster up since they are already boot-strapping the venture. The conventional personal loan applying route is sometimes out of the question since banks and NBFCs do not always lend to new and small businesses without a solid track record. Also, obtaining a personal loan individually requires going through loads of paperwork and other documentation, which can be a lengthy procedure.
Often, the sums involved are not too big, but the entrepreneurs have a harrowing time trying to raise the same. What is the solution in this regard? Instant loans are the answer to all these woes and more! The last few years have seen the rise of digital lending as a mainstream segment of the industry, and it is already gaining immense popularity throughout the country. What digital lending has done is simplify credit access and management for millions across India. So now, everyone can access credit with only a smartphone and a quick application. That is the sheer power that digital platforms have brought to consumers. It goes without saying that start-ups can also tap into the growing market for digital and instant loans.
For instance, LazyPay is a well-known digital platform, where entrepreneurs may apply for a short-term personal loan or even make purchases with no-cost EMIs. They can also choose the BNPL (buy now pay later) option for their smaller purchases like office stationery and pantry items, and repay their borrowed amounts later on in convenient installments. Coming to the personal loan, entrepreneurs only have to check their eligibility with some basic details and obtain their credit limit. They can periodically withdraw funds from this limit and repay the same with comfortable and convenient EMI plans. LazyPay offers loans up to Rs. 5 lakh and they start from Rs. 5,000, catering to a wide range of sudden and short-term customer needs. Once you successfully repay one loan, you can also get access to one-click loans from the next time onwards, since the verifications and documentation are one-time procedures. The documentation is minimal and the procedure is 100% paperless, with approvals within hours and fast disbursals.
What are the costs that startups can meet with short-term loans?
Startups have innumerable smaller costs while setting up their businesses. Some of them include the following:
- Costs of initial production setup if the company is into manufacturing goods.
- Initial stocks and inventory.
- Paying suppliers and vendors initially.
- Paying rent for offices or workspaces.
- Buying furniture like tables, chairs, cabinets, desks, and other essentials.
- Getting phone and electricity connections along with installing appliances like air conditioners.
- Buying office gadgets including laptops, printers, scanners, and desktop PCs along with other stationery. This may also include card machines, projectors, and many other gadgets that are handy at the offices of several companies.
- Meet sudden advance payment requirements or consolidate working capital expenditure.
These are only a few of the probable costs that startups have to encounter, early on in their journeys. When it is not possible to arrange for funds, instant and digital lending solutions help them obtain the necessary credit seamlessly and repay the same conveniently later on. No longer do they have to worry about getting funds at the right time for meeting varied expenses.