Practice loans are gaining popularity. These are unsecured loans that help professionals to start or expand their businesses in highly competitive markets. Unsecured practice loans are far better than secured loans in terms of unmatched flexibility and freedom to identify and invest in specific business areas as per requirements. Some of the primary highlights of these loans include:
– Freedom to invest in business segments as deemed fit by business owners.
– Minimized risks because business and personal properties are not held as collaterals.
– Opens up new credit lines without putting pressure on existing ones.
– Separate cash flow provides significant advantages over competing businesses.
Compared to secured loans, unsecured practice loans are easy to take out. Loan approval process is fast and money is credited to applicant within 24-48 hours from time of application. Benefits of unsecured loans for practice are all listed below:
– All Purpose Loans: As name suggests, professionals are allowed to use the loan amount for addressing virtually any business need such as relocation, merger, acquisition, business equipment, office furniture, staff salary etc.
– Tailored as Per Needs: These loans can be tailored as per the requirements of the applicants. In other words, loan agreements can be tweaked to suit the financial needs of applicants and their businesses.
– VAT Options: Applicants may choose to include VAT or exclude the same as per their preferences.
– Invoices are Not Required: Applicants are not required to present invoices.
– Repayment: Applicants are free to choose a repayment period ranging between 1 and 7 years. Interest rates are amortized as per the agreed terms.
– Fixed Rates: Interest rate charged for a sanctioned loan remains fixed throughout the agreed upon repayment period even if the market interest rates fluctuate.
Possible Uses of Unsecured Practice Loans
These unsecured practice loans can be used for different purposes that are listed below:
– Business acquisition, expansion, relocation or merger.
– New recruitment, in-house training or staff salary.
– Purchase of office equipment, furniture, refurbishment and transport vehicles.
– Covering IT/Software/Hardware and telecom expenses.
– Funding Partnership Buy In and Buy Out or equity purchase.
– Funding Professional Indemnity Insurance.
– Clearing tax liability.
– Covering aged debt (applicable only in case of barristers).
Because unsecured practice loans open up alternate credit lines, they allow professionals to keep their existing credit lines or financial arrangements like credit cards, saving bank accounts, current accounts etc. unaltered. At the same time, these unsecured loans can help professionals to gain competitive edge over others by upgrading or expanding their businesses rapidly.