123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Selling Assets Versus Sme Loans: Which Is The Better Option?

By Author: Manish Damani
Total Articles: 2

A business may be in need of some resources to expand or to just meet its expenses. What should a business owner do in such a scenario? Should he sell off his assets to raise money or should he take a loan for his business from the bank? The safest and the easiest way for the businessman would be to avail a loan. SME loans can be availed by small and medium-sized businesses. An asset is something that belongs to a person and can include real estate, gold, jewellery or any other material thing that has some value in the market. Selling off an asset can provide a person with the necessary resources to take care of his/her business. But losing an asset can prove to be a bad financial gamble as the value of assets (particularly fixed) tends to increase with time. You also have to face the problem of replacing the asset sold once you have dealt with your financial constraints.

The various benefits of SME funding are as follows:

• This loan is basically a business loan that can be used to increase revenues or to get an upper hand on a competitor. If you can utilize the loan efficiently, your business is bound to become profitable. You can use this profit to pay off the loan, and you will also be left with some surplus income. This is better than selling off your asset as replacing it might take a lot of time and effort.
• Finance companies in our country are specifically catering to the needs of start-ups and SMEs. The government is also supporting entrepreneurs and encouraging them to expand their operations. Thus there is a massive scope for funding of new businesses and expansions. In this scenario, the loan process has become simple, fast and hassle-free.
• Banks are offering customized solutions to SMEs that are applying for loans. You are being given a chance to choose whether you want a loan for a short term or for the long term and how many loans you require. Repayment options have also been made flexible to meet the requirements of the business. Thus banks are offering unique loan features to meet the needs of SMEs in India.
• Banks are providing SME loans without you having to pledge a property or asset. This has made it very convenient to avail such loans without worrying about which asset to mortgage. Normally banks and financial institutions are providing these loans to businesses that have been successfully operating for at least a year.
• Furthermore, banks are indulging in SME funding by keeping the interest rates competitive and are charging nominal processing fees.
Thus, due to the above factors, it is better to avail an SME loan than selling off your assets. If you are planning to have a safe and sound financial future, availing a loan will prove to be much more beneficial in the long term.

Author Bio: Manish Damani, a financier by profession, loves to write during his spare time. He combines both his interests, by dispersing financial related information whenever possible. Through his work, he has provided information on which is the better option: SME loan or selling off assets.

Total Views: 29Word Count: 528See All articles From Author

Investing / Finance Articles

1. These Monetary Items Are Modified For Conveying Simple
Author: Tommy Harisson

2. M&a Advisory Firms
Author: Sandeep Sharma

3. Want To Invest In The Share Market For The Long Term ? The Prior The Better!
Author: Mahendra Rajput

4. Indian Gold Trading
Author: wasim rizwan

5. You Are Affirmed Cash In A While Without Such Commitments
Author: Jim Carry

6. Why You Need To Go Over The Internet Before Applying For A Home Loan
Author: Chandani Jawar

7. You Require Cash Just By Enrolling Yourself With The Loan Specialist
Author: Alexander Zeus

8. Benefits Of Getting Instant Cash Loans In I Hour India
Author: Akanksha mishra

9. The Borrower Should Remember The Repayment Sum
Author: Martina Smith

10. Best Way To Fulfill Your Housing Needs: Home Loans
Author: Chandani Jawar

11. How Benchmarking In A Business Helps In Reducing Labour Hire Costs
Author: Dylan Munro

12. India Inc May Need To Change Rating Agencies Every 3 Years
Author: Suraj Pratap Malik

13. Bitcoin Workshop | Bitcoin Seminar | How To Buy Bitcoins
Author: AB Web Technologies

14. Online Financing - The Modern Way Of Investment
Author: wealthcarreindia

15. Equity Research Report
Author: Chetan Rathod

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: