A Comprehensive Guide on Long Term Business Loans

In the new business era, financial misfortunes come uninvited. In such a worrying time, a type of credit borrowing with long payback terms with interest amounts is called a long-term loan. However, understanding the many long-term financing options and their benefits and drawbacks is essential. This guide contains information that will assist you in finding and applying for a long term business loan. 

How Long-Term Business Loan is beneficial for your business?

The low interest rates and predetermined payback plans make long-term loans a reliable financing source for small, medium, and large-sized businesses. In other words, use them if you want to inject a lot of money into your firm.

Purpose of the Long-Term Business Goals

Businesses use loans for various purposes over long periods.

• Buying land for  office space, or commercial property for business

• Purchase of assets Capacity upgrades 

• Buying heavy machinery/equipment or commercial vehicles

• Hiring new employees 

• Starting new ventures

• Setting up new offices or branches and much more

Eligibility Criteria For Long Term Business Goals 

• Age Criteria: To be between 21 and 61 years old.

• Eligible to Apply: Established business owners, Entrepreneurs, or Enterprises 

• CIBIL Score: Recommend above 700 for business purposes.

• Annual Turnover: Depends on lender ITR filed for at least the last 2 years 

• Your business with no defaults with any financial institutions

How to Apply for a Long-Term Business Loan?

Enhance your business with an ample amount of business loan opportunities. However, it boosts creditworthiness if repaid in time. Additionally, expand your business successfully with flexible choices, which option is suitable for your venture. 

A Guide to Apply for a Business Loan Online 

• Go to the lender's official website and Click on “Apply for a business loan”

• Then, choose the "Apply Now" option from the menu. 

• Enter all required information such as Name, Date of Birth, Adhar card, etc…

• Check and ensure about filled data and then send it required documents 

• Once the verification process is completed and determined it is accurate,  the money will be deposited into your bank account.

A Guide to Apply for a Business Loan Offline

You may want to consider going to the nearest bank branch when applying for a business term loan and submitting the necessary papers, knowing you met all eligibility expectations and have all required documents. After the bank staff completes the background check, the amount will be credited to your corporate account.

What are the documents required for the Long Term Business Loan?

• APlan of Business

• Application form and pictures of the size of the passports

• KYC records for the applicant and any co-applicants, partners, or directors, if relevant

• Identity Proofs of the applicant's age, address, and income

• Address verification and vintage business

• Business PAN card and copies of licenses, certifications, and registrations

• A copy of the P&L statement and the bank statement for the previous 12-month

• Articles of Association and Memorandum of Association

• Any additional relevant documents that the lender requires

Why Unified Capital and Investments for Business Loans?

Businesses in need of funding can choose from a variety of long- and short-term business loans offered by Unified Capital and Investments. Secured business loans up to Rs 5 crore with a flexible period and applicable terms and conditions. Additionally, prospective borrowers must fill in the loan application form with their main personal and business information to qualify for a loan. After completing the KYC as required by this agreement, the lending amount will be deposited in my bank account without any further delays.

In Conclusion 

From the above information, we conclude that when a company needs working capital, long-term business loans are common. But these loans make sense only when a borrower has enough money to make easy payments on the loan each month. However, the best way to choose a business term loan is by assessing how much your company is required to meet all essentials to participate in the business growth.