Business needs funds for various purposes like working capital, purchase of machinery, clearing and consolidating high cost debts, expansion. Business Loans are given to established business having of at least 3 years in business and preferably 5 years.,with out any security and collateral.
Small business financing refers to the means by which an aspiring or current business owner obtains money to start a new small business, purchase an existing small business or bring money into an existing small business to finance current or future business activity. There are many ways to finance a new or existing business, each of which features its own benefits and limitations. In the wake of the recent financial crisis, the availability of traditional types of small business financing dramatically decreased. At the same time, alternative types of small business financing have emerged. In this context, it is instructive to divide the types of small business financing into the two broad categories of traditional and alternative small business financing options.s