Businesses, big or small, often procure loans from financial institutions at different points in time. This loan provides enterprises the much-needed liquidity to address operational expenses and help them sail through a cash crunch. However, there are many ways through which you use this loan to take your venture to the next level. If you are wondering how to do so, read on.
Business Loan for Business Expansion
Every business aspires to expand, both in terms of volume and offerings. However, expansion is easier said than done, and its success depends a lot on the availability of funds. There are various costs that an enterprise needs to address during the expansion process, including buying or renting new premises, purchasing equipment, undertaking marketing campaigns, etc.
All of these require a considerable investment upfront, and this is where a business loan provides the required funds. One of the significant benefits of business loan is that it doesn’t require pledging collateral. It means you don’t need to pledge any security to the lender.
Upon completing the formalities, you get the loan amount straight into your account within a few days.
Buy/Lease Modern Equipment
The success of any business hinges largely on the equipment it deploys. Just like every other thing, equipment becomes obsolete, calling for its replacement. Businesses can replace outdated machinery in two ways. They can either buy a new one or get it on lease. Irrespective of the method chosen, the same requires substantial investment on the go.
A business loan provides your venture the required money to buy or lease new equipment. This has a direct impact on operations, having a positive influence on revenues. At the same time, it gives you a competitive edge in the market over your rivals and enhances the efficiency of your workforce by a significant margin. In the long run, it helps in bolstering revenues.
Deploy New Technology
Modern businesses are technology-intensive. If you want to compete on a larger scale, you must deploy the latest technology in your venture. However, it comes at a cost that may range from a few lakhs to rupees to even crores. An unsecured business loan provides you the liquidity to plan and deploy new technology into your business and take it to greater heights.
It also helps you conduct technology audits, find out the loopholes and plug the gaps. In a nutshell, with the help of a business loan, you can instill state-of-the-art technology into your business and compete with the very best in the industry.
Encash on a Market Opportunity
Successful businesses are those which encash the opportunities presented by markets from time to time. Often announcements from government and regulatory authorities provide opportunities to enterprises capturing which help bolster revenues.
For instance, subsidy on registration of commercial spaces or entering into a joint venture with a PSU in the same domain can help you save on expansion costs and leverage expertise of the other party. In such a scenario, paucity of funds can be a roadblock. However, a business loan can help you clear the hurdle and get going.
How to Apply for a Business Loan?
Now that you know the latent benefits of an unsecured business loan, the question is how to apply for a business loan? It’s easy. Today, almost all lenders have the provision for online application. Fill up the form, upload the documents required for business loan, and you are done.
While opting for loan for business growth, do compare lenders on parameters such as rate of interest, prepayment charges, and penalties, among others, and choose the one that best suits your requirements. An analysis of different types of business loan will help you seal the best deal.
Poonawalla Fincorp offers business loans at a competitive rate of interest with easy documentation. Get in touch with our executives today to know more.
Ever wonder how your friend is so relaxed even after taking debt or loans on his shoulders? Or how did your neighbour manage to send his kid abroad for higher studies? Well, the answer is Personal Loan!
How magical was the day when you discovered your career path? After a lot of research, putting in so much hard work, late nights, your heart and soul, you have become what you are today.