4 Business Types You Must Know

Business, not just do the buying and selling is done. It takes courage to start doing business. Business types is 4 (four). Business Stubs, Business Opportunity, Franchise, and Autopilot. The four types of business have advantages and disadvantages of each. By following the article below to complete, then you will know the business that has or will you wake up including which type of business.

Business Types

4 Business Types

1. Business Stubs

Business stubs are all businesses you start from scratch. The risk and busyness is greater, but the return (return) is also greater. This type of business is the most widely used by the people of Indonesia.

2. Bussiness Opportunity

With BO (bussiness opportunity) you get the ease of brand, knowledge and equipment from the center. So you are easier in the initial preparation in opening a business. BO is a breakthrough business for beginners with low risk / small but have a decent profit. The most used BO around you is BO for Donuts.

3. Franchise

With the franchise you will get the brand, the system from the center. Support from the center is done continuously (because you pay royalty to the center also continuously). The role of the center is proportional to royalty. For example the royalty for the center of 1%, then the central role is also 1%.

Examples of businesses that are managed with franchise business types such as McDonald, KFC, Pizza Hut, Starbucks Coffee etc.

4. Autopilot

All managed center. In general, the center is responsible. Which includes the type of business autopilot is 7eleven, etc. Return for you is not too big, because you also do not work.

For the type of business, the business opportunity and the type of franchise business all the risks and consequences you bear, including the risk of profit and loss. Because basically your business manage yourself. If you could profit billions, it is your right. So also if loss. But for most ordinary people, if the loser is the center of the blame.

Does it mean there’s no difference between business type and franchise? Take a look!


– Small capital, can start from 1.5 million
– Just run by buying and selling broke up
– Brand / name already exists, it’s up to you for use it or not
– Promotion is there but not absolute
– Can be independent
– The success rate is greater
– Development is more free


– Large capital, starting from 100 million
– Absolute business format followed
– Brand / name already exists, must be followed.
– Absolute promotion exists
– Can not be independent, all determined by Franchisor
– The success rate is greater.
– Business development is determined by Franchisor

Most of the people who take the business type BO (Business Opportunity) expect to run like a franchise. For those who take the franchise hopes it will run like an autopilot. Understand the differences between the four types of business.

So, which business type is best for you? Choose according to your readiness and character. None of the business types are “the best”. Everything is a plus minus. If your business has not started yet, then you should be able to decide which business type you will take.

Profitable Small Business You can do from Home

A lucrative small capital business !!! What comes to mind in us is the effort that we run to supplement the main income. Relying on basic salary as employees every month makes us dizzy themselves. Not to mention the increasing needs of the day. So why do not you want to try to increase your income through side work. Starting a business does not need large scale let alone you as a beginner. The important future is quite profitable and can supplement your income. Here I will try to share examples of side business and fixed business profitable with small capital.


1.- Phone credit

Human need for phone credit nowadays I do not think you should ask again even you are one of the active phone credit users.

2.- Realtor and property

The advantage of being a broker I think is quite high. Staying longer to sell or offer in the form of land or property lease is not an easy job. You are required to work more extra and build a wider relationship. Profit received into a realtor in the form of fee. Usually the fee you receive in the form of sale and lease is about 3% from 1M. While for rent and sale above 1M you will receive a fee of 2.5%. I think the profit is quite tempting.

3.- Paint

The most fun work is when we get paid with the hobby we work on. If you have a hobby to paint it is a plus for you because in addition you can channel the hobby can also bring a purse of rupiah that is not small. The key to success to run this business is often follow the exhibition and attention to detail the results of the painting so that you get new ideas.

4.- Online shop business

In the past I also write an online shop is a promising small business capital opportunity, now I recommend again for you want to find a suitable business idea to run. Online shop or online store is very interesting tuk run because the offered is not limited in either the form of goods or services.

5.- Reseller

Reseller working system is not much different from the online shop, if the online shop of goods that we offer is our own while the reseller is someone else (party supplies). Being a reseller is not a complicated job you live advertise in various free media like the web that provides advertising free. The advantage of becoming a reseller is generally a percentage (%), depending on your initial agreement on the supplies.

6.- Freelance writer

Write blog or web content now booming online now. Quite a lot of bloggers who do not have much time managing its web. Then they decide to buy content or articles to other parties. We recommend this opportunity you can catch as a profitable business without disrupting your main job. Why? Because you can do it at night.

7.- Language translator

Indeed from the first until now the google inc has provided translation of several languages ​​but the results of the google translation is still ambiguous and irregular both in terms of vocabulary and sentence arrangement. If you have the skills to translate a foreign language into Indonesian or vice versa it is one advantage for you because not many are able as a translator.

8.- Teacher tutoring

being a tutor does not differ much from the same language translator in the same field of science. If you can not afford to go to high school you can teach for elementary school as well as for kindergarten.

9.- Publisher advertising

On each site especially about side business opportunities you may find this word, because publisher advertising from the past until now is the choice of many people. The advantage of publisher advertising is in the form of PPC payment per click, every visitor who clicks the ads you publish will be paid to you. For the amount per click it depends on the ad.

10.- Graphic design services.

Graphic design services one of the small capital business opportunities that are easy to do. Both for office workers and a student. To be a reliable graphic designer you need to learn and often search for new ideas for ideas designed. Not a few people choose graphic design services as a job to increase the main income.…

How to Successfully Pass Your Upcoming Drug Test

Nowadays, it is not that weird to find out your co-worker, your friend or relative has been using marihuana. It may come as a shock to you, but it is a common thing. Many countries worldwide have been legalizing pot. Some legalize it only for medicinal purposes, others even legalize its recreational use. However, some employers may not accept the fact that their employees use these substances. So, they may test them for drugs in their system. Tests can be done before employment. These are the most common. People can get tested even during work.

There are many types of tests for employers to see if you are using. The most frequent are urine, blood, saliva, and hair testing. For a drug user, it may be quite problematic to get a steady job. With tests, it can get trickier for them to keep a job. So, they get creative in finding ways how to pass their drug tests successfully. Today, there are a lot of products and methods that help you in clearing your body of toxins. You just have to find the right one. If you want to read more about this, you should click here https://medlineplus.gov/lab-tests/drug-testing/.

Urine Drug Test

This type of test is believed to be done the most often. Various drugs can be detected in your urine. They are amphetamines, cocaine, opioids, marihuana, PCP, and alcohol. Even nicotine can be detected.

Nevertheless, you should know that there are so many factors that can affect the test. You body mass, hydration level, how long ago you took the drug, and how often you use are some of them. If a person is a heavy and frequent user, it will be harder for them to clear their body from the toxins.

Before taking a urine test, your employer and tester should know if you are taking some medications. Whether they are herbal, prescription, or over – the – counter medications, you should tell them. Even if you are using marihuana for medicinal purposes, you should mention this. Waiting for the results can be quite stressful. Some results come the same day, others may take a few days. It all depends on the method of testing.

If you are wondering how to clear a drug test, you should stop using first. There are natural ways to detox. You should remember to drink more water. Alcohol and coffee are not recommended. You should drink more natural juices. Many tablets and drinks help you to detox your body. There are a lot of companies that make these products. You just have to get online and look for the perfect product for you.

Saliva Test

This kind of test has been growing in popularity. The majority of people who have to take drug tests often feel embarrassed. Giving your urine can be quite demeaning. That is why saliva testing is preferred. However, there are divided opinions on how accurate the results are. Some say that if you have smoked pot just before the drug test, you are in danger of failing the test. Otherwise, it is not that reliable.

It is the best option when the employer wants to find out if their employees have been using recently. The results can come back positive even if you have used something before coming to work. A urine test can miss this because it takes a while for the toxins to enter the bloodstream and then the urine. With saliva tests, the employer is less invasive, and the results can come back in just a few minutes.

Blood Test

Blood testing is thought to be the most expensive type of test. Also, a lot of people get squeamish at the sight of blood and are likely to faint. It is undoubtedly quite invasive, but it shows the most accurate results. It shows the presence of the substance and toxins in your system at that particular moment. It is mostly done when people are applying for insurance, applying for specific jobs, or even in some court procedures. Employers rarely do these tests because of their cost, invasiveness, and required equipment. It can take a while for the results to come back.

Blood has a short detection time. So, if you have used anything, it will quickly pass from the blood. All you have to do to pass a blood test is to stop using. To ensure success, you can go for a healthier diet, drinking lots of fluids, and exercising. That way, your body will quickly flush out the toxins. You could also buy some drinks or tablets to detox faster.

Hair Test

A hair follicle test is mostly used to determine longer use of specific drugs. It can show data of use from 90 days. It does not show any recent intake because it takes a while for the drugs to be processed in the skin. It can even detect ecstasy, eve, opiates, and PCP. However, you can’t do this test if you want to test for alcohol.

It is essential to know that some factors play a crucial role in the results. The amount of melanin, the coloring of the hair, and how much a person sweats are some of the most important. They can influence the results. Also, the components of the drug and how often the person uses are noteworthy factors. Some people with no hair may think they can’t get tested this way. Nevertheless, hair from your armpits may be used in cases like this.

The best way to prepare for a hair test would be to buy a special detox shampoo. Many companies have such products. Once you receive the notice of the test, buy it immediately and start using it as soon as possible. It is recommended for you to use it 15 times in total before the test. You should put a generous amount of the shampoo on your hair. Make sure it stays for 10 – 15 minutes to ensure the best results.

10 Quick Tips About TVS Jupiter Insurance

If you have been pondering buying a new scooter, you should surely check out the TVS Jupiter. It is a stylish two-wheeler providing you with all the flexibilities, which you can expect from a top-quality scooter. However, once you buy the scooter, you will also need a two-wheeler insurance policy for it. As per the Motor Vehicles Act, 1988, it is mandatory for every two-wheeler owner in India to buy an insurance plan for any motor.

Here are ten tips to help you invest in the most suitable insurance cover for your TVS Jupiter.

  1. Analyze your requirements regarding two-wheeler insurance

When buying a two-wheeler insurance plan, you must first decide what you require from it. Depending on your budget, you can determine whether you can buy a comprehensive policy or a third-party cover.

  1. Know about the Insured Declared Value (IDV)

The Insured Declared Value (IDV) of your scooter depends on the age of the vehicle. To put it simply, the IDV is the current market price of the vehicle. In case of total damage or theft of your TVS Jupiter, you will receive the amount of cover depending on your current IDV.

  1. Buy your two-wheeler insurance only from a trusted insurer

When buying the TVS Jupiter insurance, make sure of purchasing it from a reputed insurance company. Compare the claim settlement ratio of different insurers to find the best one.

  1. Compare the insurers online

Internet is the most powerful tool when it comes to the comparison of various insurers. You can do an online comparison of the offers, premium, and covers of different insurance companies within a few minutes. This way, you will find the most appropriate policy, as per your requirements.

  1. Read online reviews

Online reviews are quite helpful when it comes to finding out if an insurance company delivers what was promised. Reviews from real customers always paint the perfect picture.

  1. Avoid small claims

If you start making insurance claims every time there is a little scratch on your TVS Jupiter, your premium will increase. Avoiding minor claims will significantly lower the premium in the long run.

  1. Find out about the deductible

When you pay some money from your personal resources while filing a claim, you will have to pay less in terms of premiums.

  1. Buy your insurance policy online

Most insurance companies offer a discounted price when you buy the two-wheeler insurance policy from their website. Buying insurance online is a time-saving process.

  1. Research about the personal accident cover

The personal accident cover is offered by the insurers to financially protect you against injuries due to any accident of your insured TVS Jupiter. Inquire if your policy comes with it.

  1. Decide if you need add-on covers

Add-on covers can be separately bought with your TVS Jupiter insurance policy to have extra protection. Depreciation cover is one of the most popular add-ons offered by manyinsurance providers. With this, the value of the scooter’s body parts is not decreased with time, and you receive the full cover while filing a claim.

Be very careful about choosing your insurance company. You need an insurer whose TVS Jupiter insurance policy meets your specific requirements.…

Management Consulting Industry: Important Trends and Global Outlook

Management consulting is the process of providing consultation for business and process management to the companies. Business organizations may opt for the services of management consultants for a number of objectives such as following and implementing industry best practices, change management activities, process analysis, strategy development, technology implementation, and operational improvement services. Management consultancies or consultants can be engaged proactively without any strict need. Proactive use of a management consultant’s services can include finding the hidden weak spots and improving productivity. In comparison, the reactive use of a consultant’s services usually includes identifying the pain points and solving problems within the processes.

Management Consulting Industry – Important Trends:

Since the global management consulting industry directly caters to a vast majority of industries from different domains, the industry trends are influenced by the shifts in the other industries.

  • Growth Trends: Operational efficiency, regulatory compliances, and technological advancements can be considered the growth drivers for the industry. Enterprises put their best efforts in reducing costs and increasing their operational efficiency. They intend to save costs on the one hand and transfer it to the consumers as a method of maintaining a competitive stand. Both multinational and domestic enterprises are also seeking advice on advanced technology skill sets such as AI, Agile Best Practices, and Analytics. Both the consulting service providers and businesses are becoming more consumer-centric and they are focusing on designing a better user experience, data-analytics, and sharp consumer engagement strategies for an increased demand for transformation consulting.

Similarly, several regulatory compliances and changing economic scenario among developed economies such as the U.S. Reform, EU General Data Protection Regulation (GDPR), and BREXIT have triggered the demand for consulting services across every global industry. Multinational companies seek high-value advice for coping-up with the regulation that will ultimately increase the demand for management consulting services.

  • Challenging Trends: The global management consulting industry is also witnessing freelance service providers that are expanding the freelancer segment within the industry. The segment is also expected to affect the demand for traditional consulting services and service providers. In addition, larger enterprises that work on a global level are also establishing in-house consultation departments and groups that usually have former consultants and veteran experts. This is going to become a new trend as the in-house teams solely dedicate their time and efforts for the company issues.

Management Consulting Industry – Global Outlook:

The global management consulting industry is growing at a CAGR of approximately 4-5 percent and it is expected to attain a market value of $285 billion by the end of 2019. Network-based consulting and crowd-sourcing are some new business models in the industry adopted by companies such as Wikistrat, Business Talent Group, and Hourly Nerd. On a global level, North America and Europe can be considered highly mature markets as they contribute three-fourth of the total global revenue. A major reason for that is the high supplier capabilities that can cater to the complex client requirements. On the contrary, the APAC region accounts for a relatively lesser market value due to low market maturity and low service provider capability.

The global management industry is huge and it caters to almost every industry. However, some changes are causing disruptions in the industry that can slightly shift the growth curve in a different direction.

Why do you have to get a Glass Door Refrigerator?

It is a typical thought that a glass door white goods is simply utilized in convenience stores, restaurants and groceries. However, the employment of glass door refrigerators goes on the far side that for even within the simplest homes, they can also be used. One of the explanations for victimization this kind of white goods is that the one mentioned higher than whereby you’ll see what food things you have got within while not having to open the door. This doesn’t simply prevent time, however conjointly electricity as a result of each time the icebox is opened, there’s electricity spent. Once you have the standard white goods, there’s an opportunity that once you are putt the food things within, you only dump them to no matter house is on the market. On the opposite hand, with a glass door white goods, you’ll have this compulsion to stack everything showing neatness as a result of anyone WHO are coming back to your room will simply see however the icebox appears like. https://www.phirella.com/glass-door-merchandiser/  This too can facilitate your with locating the items that you just want simply since everything is showing neatness organized within.

Because this white goods includes a door that’s manufactured from glass, cleanup it’s such a lot easier once being compared with different refrigerators. All you would like may be a damp fabric to wipe the door. In mere a matter of minutes, it’ll be shiny and sleek, simply the manner that you just need it to be. Also, this kind of white goods will slot in any room style. It conjointly helps that tumbler door refrigerators are available a spread of colors in order that you’ll have lots to settle on from. And after all, these too are available completely different designs and styles. Definitely, you’ll realize the one which will best fit your room vogue. When searching for a glass door white goods, you’ll need to consider some things before finally creating a call on what explicit model to shop for.

If you raise why, this is often for you to fancy the advantages of getting a glass door white goods, and to not regret deciding to shop for one. Keep in mind that it’s not simply some pennies you’re visiting pay, however tons and even thousands of it. uncalled-for to mention, the acquisition you must create shouldn’t be one thing that you just arrange to do on impulse, however it ought to involve careful coming up with and analysis. The budget, the house required, the standard are 3 of the foremost vital things that has to be although of terribly fastidiously once you would really like to get a glass door white goods.

Once you set a budget, you have got to create positive that it’s at intervals your department capability in order that you’ll not be wanting into a debt that you just cannot pay. Meanwhile, you have got to live the house that you just can spare for the white goods in order that you’ll still move freely in your room or within the area wherever you’ll place the refrigerator. And lastly, you have got to create positive that the glass door white goods model you’re shopping for has wonderful performance which it’s sturdy enough to last for many years that you just are visiting want it.

The next time that you just are visiting get a white good, it’s extremely counseled that you just inspect glass door refrigerators, since these are hailed because the best, with all the advantages that they supply.

The Reasons to shop for Glass Door

white goods No home will imagine a life while not a white good. We tend to use it to store and preserve all biodegradable food things. It permits you retain food recent for many days. But, imagine the convenience you’d have if you may inspect the icebox while not gap the door. That’s the most important reason to shop for a glass door white goods. A glass door white goods permits you to work out what food, fruits and vegetables is keep within while not the necessity to perpetually open the door to test the contents. https://www.phirella.com/glass-door-merchandiser/ This fashion you’ll create correct arrangements for your grocery searching further as change of state. The other good thing about this kind of white goods is stacking the food things. Underneath traditional circumstances, we tend to simply dump the dishes within the offered house in a very ancient white goods.

However, since anyone coming back into the room will read the contents of the glass door icebox, we tend to endeavor to rearrange things showing neatness. This, in turn, helps United States of America to find things simply while not having to rummage. Additionally, as things are simply visible, you’ll see that food things are becoming spoil and discard them before they need an impression on different keep food items. The fact that the door is formed from glass, permits easier cleanup. Additionally, if you modify the d? of your room, you are doing not need to worry concerning shopping for a brand-new icebox to match the d?The icebox can mix in with any combination with none issues. In industrial setups, these fridges are extraordinarily handy as they’ll conjointly double up as a showcase for food and beverages. There are many alternative varieties of glass door fridges — single door, door, door or three-door varieties. The worth conjointly varies reckoning on the scale and functions gift. However, simply the sheer convenience of organizing your life within the room makes this icebox a worthy investment.

The Types and Requirements for Handyman Insurance Policies

If you’re an unlicensed tradesman, you might also be called a handyman. If you run a handyman business, then you will need what’s called Handyman Insurance. This set of insurance types refers to the liability and property coverage that handyman must have. You can expect this grouping to include six different types of insurance but at least general liability insurance coverage,  workers’ compensation, and equipment coverage.

It’s important to remember that the type of work a handyman performs on the job site will determine the insurance they need. Also, handyman businesses already perform higher risk work than other types of jobs. A handyman business owner’s work finding the right coverage is hard, but here’s a great starting point.

Six Handyman Insurance Types

Within the USA, there are no strict requirements for a handyman business’s insurance. As such, it’s up to the business owner to consider the risks their business faces. A great starting point for insurance policies is to look at handyman insurance coverages are general liability insurance, workers’ compensation, commercial auto insurance, equipment protection, builder’s risk or inland marine, and finally liability insurance.

General Liability

General Liability Insurance Coverage is great for protecting you against property damage to the home or job sites you worked on, subcontractors’ work, incomplete work, medical payments from accidents, and injury from advertising. It’s the perfect way for a handyman to protect the client’s healthy, pets, and property.

Workers’ Compensation Insurance

Worker’s Compensation insurance coverage is business insurance made for helping the handyman business when an employee receives bodily injury gets hurt. It helps to cover the medical bills, hospital time, prescriptions, special treatment, or rehab to missed income to help the employee that is hurt.

Commercial Auto

Though single person handyman teams might not need this type of insurance can be perfect for small business or large companies with a fleet of trucks. A business owner’s policy for commercial auto will help protect against theft, damage, and accidents to the truck.

Equipment Protection

Similar to commercial auto, equipment protection keeps your business in good shape by helping protect against stolen or vandalized equipment. Normal wear and tear are excluded. Be sure to know the worth of your tools so that you can replace them if the worst happens.

Builder’s Risk

Builder’s risk is also called inland marine insurance and helps to cover the equipment and materials that are being transported or stored. Inland marine helps to protect from theft, vandalism, and weather loss. Without builder’s risk, you would have to pay for all new equipment yourself should something go wrong. Due to the cost of this insurance, many choose only get what they need when they need it rather than buy in bulk as they could lose more.

Umbrella Liability Insurance

This type of handyman liability insurance’s name is a very good image for what it does. Umbrella insurance extends the coverage that your insurance policies have by another million dollars per claim. Due to this, it’s often something that larger businesses have rather than smaller business.

Reasons Why You Were Not Approved For Car Loan on Credit Unions in Syracuse

When you wish to purchase a vehicle, the first thing that you should do is check your credit score and see whether you can qualify for loan or not. The main problem happens when a lender states that you are illegible for it.

You will find yourself asking whether your credit is bad, and what should you do when it comes to financing things around you. Even though you are feeling down, you should click here to learn what to expect when applying for it.

The first thing that you should do is check out reasons why you cannot qualify since it is simple to determine. You can consider hundreds of ways and things that will create a difference between car loan approval and you.

Therefore, you should check out the list we compiled so that you can avoid doing it yourself.

  1. Lousy Timing

Timing is everything and that is a fact you should remember. Therefore, when it comes to timing we are not talking the hour of the day you should apply for it, but circumstances that happened in the last few years or months can affect the outcome.

For instance, if you consider your job status, if you have applied for another loan or you are currently searching for a new job, it means that you will not be the reliable person for getting money.

At the same time, in both scenarios, you will not be able to take a vehicle credit.

In case that you have applied for another loan such as student or business one, have in mind that more credit checks you created, the score will be lower as a result, and you will find it challenging to get the appropriate amount you wanted in the first place.

On the other hand, if you changed your job in the last few months and you are still in trial or probation period in a new place, it means that you will not have a guarantee that you will get a full-time position and it is less likely that you will be approved.

Therefore, the lender may think that you can only make regular payments as a full-time employee, which means that you should wait for it until you make up your mind.

It is important to remember that job transition is simple to handle because you just have to wait for a full-time contract. You should check here to learn more on car loans and everything about them.

On the other hand, if you have issues due to another loan, you should check out with your financial advisor so that you can determine what to do to improve credit score.

  1. Credit Report Mistakes

Have in mind that credit bureaus tend to handle your credit info and in some cases, they can create havoc by making mistakes. For instance, if your previous firm was bankrupt seven years back, or you missed payment back then, that particular mistake could affect future loans.

In case that past information is still affecting your credit reports, the lenders will understand that we are talking about inaccurate perspectives, but they will still label it as too risky and you will not get the loan.

The lenders do not wish to risk by investigating and checking out, which is why you may be declined. Visit this website: https://www.investopedia.com/terms/c/creditreport.asp to learn more on how to calculate credit report.

If you are confident, that your credit score is healthy and that you had proper and accurate payment history, you should dispute a claim and wait for a better result. They may find an error and remove it, which means that you will be able to apply afterward.

  1. Lack of Documents

You have to provide a wide array of documents to your lender before you get approval and that is a fact you should remember. In case you neglect one tiny piece of the puzzle, they will not be able to process it and it is simple as that.

Therefore, you should go to them and ask about the documentation you have to handle during the application so that you can make sure that you handle everything. It is simple to fix this problem, and in most instances, they will be able to find it for you as well.…

What is an SME Loan? Complete guide to quick unsecured business loan?

An SME loan isextended by fintech lenders, which are unsecuredin nature and do not requirethe collateralcover of valuable assets. These loans generally extend from 6 months to 36 months and serve as the best business loans for SMEs.  There is considerable freedom as to its allocation. Thus, it can be utilized for short term working capital purpose as well as towards long term capexpurposes. Working Capital Loan is availed by a small business to fund their daily operational expenditure or routine business activities. Such loans provide cash infusion in the short-term and help generate revenues from business operations. These loans help meet expenditure like labor wages, inventory purchase, payment to suppliers and other operating expenses.  Fintech lenders have enabled provision of the quick unsecured business loan with minimum loan approval time of 3-5 days. This has been facilitated by making use of cutting-edge technologies.

The following are the types of Working Capital Loans commonly raised by SMEs:

1) Trade Creditor Loan

This loan is generally extended by acurrent or prospectivesupplier. The vendor will conduct a background check of the credit history of the small business, before extending this SME loan.

2)Overdraft Facility

The extension of this facility largely depends on the business rapport with the lender, which influences the interest rate and the amount range of credit facility. A big advantage of an OD is that one needs to pay interest only upon the overdrawn amount and not on the entire eligible amount. On the flip side, the rates are generally set above the prime rate of the financial institution.

3) Account Receivable Loan

The quantum of this facility is dependent on confirmed sales order value of a business. It is ideal for a business that requires financial assistance towards meeting a sales contract. However, the prerequisites are having a good business track record and a healthy credit score.

4) Factoring or Advances facility

This operates in a similar way to the accounts receivable loans. The loan value is dependent upon future credit card payments. This loan can be used by business units that accept credit cards as a payment mode.

5) Invoicefinancing
Invoice discounting and financing is gaining popularity as a means of finance. Through this small business can procure working capital. There is generally a time lapse between the raising of the invoice and the ultimate realization. One can approach a financial institution to provide a loan against the invoice from reputed customers. Generally, 80% of the invoice amount is given as a loan and the remaining 15% becomes due when the invoice is fully paid by the customer. The lender will deduct nominal charges like the processing fee and interest.

6) Short-term loan

This is charged at a fixed interest rate for a maximum tenure of 12 months, with zero collateral cover.

Broadly a working capital loan is taken to meet the gap in liquidity to meet operational expenses.

The long-term loans extended by fintech lenders broadly comprise:

  1. Term loan
    These are long term debt, where a corpus of the loan amount is disbursed towards capital expenditure. The tenure is fixed, with either a fixed or variable interest rate. Such loans appear in the balance sheet as long term debt under liabilities.
  2. Equipment financing
    These types of loans are extended to the manufacturing sector. Equipment are instrumental to conduct business operations and production activity. To purchase equipment, most financial institutions offer specialized loan products. The tenure is fixed.

The above are broadly the main categories under which fintech lenders extend unsecured business loans. An SME must select the loan depending on the interest rate, tenure,and loan amount based on business needs.…