Funding Startups With Business Loans in Odisha

How to Secure Startup Loans in Odisha

In the ever-evolving entrepreneurial world, startup funding is the key to success and ensures a recurring growth tangent. Whether it is covering operational costs or investment in technology, startups require financing to transform these visions into reality. However, 9 out of 10 startups fail each year, with 38% citing their inability to secure viable funding from trustworthy sources. 

Odisha's startup ecosystem has witnessed significant growth in recent years. The state government actively promotes entrepreneurship with initiatives like the Startup Odisha program. This initiative prioritizes access to funding, mentorship, and infrastructure and aims to create a conducive environment for startups to thrive. 

To scale operations, most startups rely on traditional methods of sourcing finance, such as equity financing. These sources require them to share their business’s ownership and control with investors. But not anymore!

Recur Club has ended this financial rigmarole, with many high-growth companies trusting the fintech platform for their financing. They secure the best capital offers from a network of 125+ marquee lenders, including HSBC, Aditya Birla Capital, Ugro Capital, and institutional providers. 

A financing solution as innovative as Recur Club is pivotal for startups navigating the evolving corporate landscape in Odisha. This article explores the benefits of leveraging business loans and exploring debt marketplaces such as Recur Club to finance startups efficiently. 

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Odisha’s Corporate Landscape

Odisha's corporate sector is burgeoning, driven by significant growth and investment opportunities. With primary industrial development in manufacturing, mining, and construction, the state is increasingly becoming a favorable destination for new businesses. 

According to the Economic Times, Odisha has approved critical projects with an investment exceeding Rs. 80000 crores in sectors like green energy and pharmaceuticals. With these projects, the state aims to generate thousands of jobs and boost the state’s entrepreneurial capacity.  

Despite infrastructural and skillset challenges, the Odisha government’s effort to promote local businesses and startups is commendable. To promote innovation, Odisha provides entrepreneurs access to several funding options, including government-backed loans and crowdfunding options. This financial support is crucial to meeting business needs, scaling operations, and driving growth. 

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Benefits of Business Loans for Startups in Odisha 

1. Ease of Availability:

• Wide Availability of Loans: If there’s one thing that distinguishes loans from other financial instruments, it is the wide availability of lenders offering business loans. For multiple funding requirements, startups can source genuine and appropriate lenders, including credit unions, banks (SIDBI), and non-banking financial institutions. 

• Simplified Collateral Requirements: Many lenders offer collateral-free loans with simplified requirements. This increases the accessibility of funds to small business owners, especially in regions like Odisha, where access to business loans is painstakingly traditional. 

• Accessibility of Funds: There has been a recent shift towards inclusive lending practices, promoting accessibility of funds for startups irrespective of size. According to a recent report by ClearTax, the Government of India has allocated Rs. 2000 crore to support startups, perpetuating the ease of availing loans. 

2. Fueling Business Growth:

• Flexibility in Loan Usage: During the initial phases, startups require funding to accelerate and expand their business operations smoothly. Funding startups with loans offers flexibility to allocate funds for significant expenditures, helping entrepreneurs meet development needs. 

• Enabling Value Chain Progression: Startup business loans would allow entrepreneurs to adapt to immediate needs for business expansion and support the value chain progression, ensuring overall business development. 

3. Flexible Repayment Options:

• Diverse Repayment Options: When choosing a lender, it is essential to consider their repayment options. Startup loans provide diverse loan repayment options suitable for a startup’s needs. This makes it easier to customize repayment schedules that align with business cycles and prevent potential strains in cash flows.

• Ease of Banking Services for Repayments: The simplified repayment process is another significant benefit of startup loans. Many lenders offer banking services for repayments, making it convenient for entrepreneurs to make payments efficiently. It’s that simple! 

4. Affordable Startup Financing:

• Reasonable Interest Rates: Contrary to popular belief, startup business loans offer competitive interest rates ranging from 12% to 24% per annum, making it an easily affordable option for many startups in Odisha. Thus, attaining capital no longer poses financial burdens and can be accessed without complications.

• Tax-Deductible Interest Payments: In most scenarios, interest paid on these loans may be tax-deductible, meaning it can substantially reduce the taxable income, decreasing the tax burden on entrepreneurs. These reductions benefit budding startups by bringing in more cash flow, which can further be used for improving infrastructure and product development.

• Nominal Processing Fees: Regarding processing fees, lenders either charge nothing or a minimal amount, attracting more borrowers. Generally, processing fees range from 1%to 3% of the loan amount, which is manageable for most startups, irrespective of size. This encourages more entrepreneurs to pursue business loans, facilitating growth in the state. 

• Government Initiatives for Startup Loans in Odisha: The government of Odisha offers various loan schemes to support startup ideas. Through initiatives like innovation grants, subsidized incubation support, and a prioritizing focus on women and marginalized communities, the government aims to empower entrepreneurs in tier 2 or tier 3 regions and establish a thriving startup ecosystem. 

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Conclusion

Startup business loans offer a range of benefits, from flexible repayment options to providing affordable loans with reduced interest rates. Considering these advantages can prove instrumental in your entrepreneurial destiny if you own a budding startup in a state like Odisha. 

Discover Recur Club—your trusted capital advisory is changing the narrative by quickly raising capital for small to medium enterprises. Enhancing the flexibility of availing loans, Recur Club offers a unique feature, ‘Funding Calculator,’ which estimates your funding in just 60 seconds. Simply fill in the required details and receive an estimated funding offer suiting your needs.

Many startups have witnessed staggering growth by raising debt capital with Recur Club. Check how Feightify tripled its monthly turnover! 

Join us in exploring tailored financing solutions that align with your unique growth trajectory. Take the first step toward securing the capital you need to succeed! 

‍Connect with Recur Club today!