Business enterprises, especially the start-up entrepreneurs generally face problems finding money to finance their businesses. They are new to the industry having many ideas and enthusiasm to achieve something. However, the lack of adequate finance does prove a deterrent to them. This has discouraged many new entrepreneurs from venturing into the market. Seeing this, many Governments are bringing out schemes to help them out. The credit institutions too are playing their part by coming forward to sanction unsecured business loans. When we use the word, ‘unsecured’, we mean the absence of the stipulation of collateral for business loans.
The credit institutions have a variety of services to offer to the business entrepreneurs today. This includes sanctioning of business loans as well as business credit cards. Now, the businessperson is in a dilemma whether to go in for a credit card or a business loan. This blog will help to clear the misconception. We shall take one aspect at a time.
Before we go into the details of solving the dilemma, we have to understand the difference between a credit card and a business loan.
The business enterprise has a plan ready for implementation. When the enterprise approaches the credit institution with a credit proposal, they evaluate the proposal according to their rules and regulations and come up with a figure they feel would be feasible and viable for the enterprise. In case the enterprise agrees to the amount, they proceed with the sanction. The loan could be for procurement of fixed assets or for meeting the requirement of working capital.
When the objective of the loan is to procure assets such as machinery, the business enterprise does not have any option but to agree to the business loan. The facility envisages repayment by way of monthly instalments. The banks factor the interest component and fix up equated monthly instalments for a fixed period of time after allowing for a moratorium for allowing the enterprise to procure, install, commission the machine and start production.
However, when the requirement is for procurement of working capital purposes, then the best way to finance these accounts is by sanctioning an overdraft account or by issuing unsecured credit cards with a regular limit. This would be a running account with the incoming credits not having any effect on the nature and amount of the sanctioned limit. The advantage of this system is that the entrepreneur would be able to withdraw as much as he actually requires at a particular time. He has the facility of depositing the proceeds of the sales of his products into the account whereby he saves on the interest component. As this is a kind of a running account, he would be able to deposit or withdraw as he pleases but within the confines of the sanctioned limit. Such kinds of unsecured business credit lines are very common all over the world.
You have seen two kinds of unsecured business loans here. Both are equally important in their own way.
People have moved over conventional methods of heating their homes. Conventional heating in homes includes warming up of the air. For example in a radiator, most of the heating is done through convection currents. The method of infrared heating has become the recent trend which is followed in every household. It is a fairly recent addition to the domestic and commercial heating scene-the infrared heater. Infrared radiation is emitted from the heater, which then travels unconstrained until it hits an external object.
If the infrared rays come into contact with the humans, they travel about an inch into the body. This provides a feeling of deep heat. Even if you are not directly in the way of the waves, any solid body hit by the waves will vibrate which will thereby cause them to radiate the heat back towards you. These days’ experts in the market are suggesting using infrared panels at home.
These infrared panels do not need any pipe work or fuel storage facilities. This process saves a lot of space, money and time. There also no direct emissions associated with the usage of infrared panels. In case you use infrared panels in conjunction with solar panels you may get 100% emission free heating. You can place the infrared heater on the ceiling so they can be easily kept away from pets and children.
I had decided to become an environment enthusiast long back. I thought the first step towards doing it would be to install infrared and solar panels in my house. After learning the benefits of these I was convinced the renewable sources of energy on earth can be consumed only if people became a little more judicious and sensitive. I started encouraging my neighbours and relatives to get rid of the conventional methods of heating their homes. The infrared heating would do much more benefits to their homes as compared to the traditional ones.
The process by which infrared heating works is quite simple. It functions by heating the surface area of the room and not the volume as in the case of traditional convection heaters. This means that they are heating considerably less, yet providing the same amount of heat. In houses when you use infrared heating to heat up walls the heat is retained inside, since they are made up of thermal mass. This helps in keeping the rooms comfy and cozy.
Services of infrared heating Scotland have always been popular and easily installable. They are cheaper and easy to install as compared to wet central heating systems. Since infrared heating simply run on electricity there is no need to install a boiler or an additional pipe work for them to run. The panels themselves can be utilised to heat up the whole house. I can also turn them on and off as and when required and by doing this I can easily create my own heating zone.