Since the first Industrial Revolution, it is evident that the key to
running a successful business lies in high-quality equipment/machinery
to operate efficiently. Industries like construction, metallurgy, and
agriculture often rely on specific equipment or heavy machinery to
ensure everything runs smoothly.
You could have the best
workforce in the world, but without machines, it is hard to run a
business that requires heavy-duty equipment. However, these machines
can be expensive and at times, out of your budget. Luckily, with a Machinery Loan, you can purchase costly
equipment, achieve a high rate of production, and use your working
capital effectively.
Check out the crucial benefits of a Machinery
Loan that can help your heavy-duty business grow tremendously.
Benefits of Machinery Loan for Heavy-Duty Businesses
1. Boosts Productivity
While
scaling up production through full reliance on your workforce is
possible, it is rarely a sustainable long-term solution. Instead,
you can improve the efficiency of the manufacturing process with
machines. Specialised business equipment lets you take on large
orders without exhausting your workforce and compromising quality.
By using machines to their full potential, you can free up your
employees, so they work on tasks that require human oversight and
input. This results in the proper use of resources and maximum productivity.
2. Helps You Take Advantage of Modern
Technology
Technology never stops evolving. At the
same time, the competition gets intense, the industry-standard
rises, and customers’ expectation increases consistently.
Nevertheless, Machinery Loans empower you to stay above all of
these. The high loan amount allows you to buy advanced machines to
boost efficiency, productivity, quality, and innovation. This can
also give you an edge over competitors and ensure customer satisfaction.
3. Upgrades Existing Machinery
Even
the most advanced machines need proper care as they undergo wear and
tear. Regular upgrades and timely repairs are required to increase
their lifespan and ensure smooth operation. However, sometimes there
could be problems that you cannot fix. Issues like electrical
fluctuations, mishandling, water damage, overheating, etc. can cause
major damage. However, with the funds from a Machinery Loan, you can
carry out even the most extensive repair and comprehensive
maintenance. This way, you can continue to maintain and ensure
efficiency and quality without any delays.
4. Conserves Your Working Capital
It is important to maintain adequate working capital to ensure the
smooth running of a heavy-duty business. Doing so can help you take
care of urgent requirements and even sail through tough times. One
of the best ways to conserve working capital is to avail of a Machinery
Loan to purchase new equipment. When you purchase new equipment
using Machinery Loan, you get to start utilising it and reaping its
benefits right away. This can increase productivity, improve
efficiency, and inject more capital into the business.
5. Positively Impacts the Balance Sheet and Saves
Tax
Machinery Loan helps in buying new equipment,
which then becomes your asset that strengthens your balance sheet.
High-cost machines also leave a positive impression on potential
investors. You can also receive tax benefits on the cost of your
machine if it is classified as a contributor to your business's
functions. The tax exemption can be claimed on your Machinery Loan’s
interest amount, but keep in mind that it depends on multiple factors.
6. Protects You from Price Hikes
You can purchase new equipment with a Machinery Loan without
having to worry about price fluctuations. Some Non-Banking Financial
Companies (NBFCs) like Poonawalla Fincorp offer Machinery Loans with
a high loan amount of up to ?5 Crore. This will let you buy
essential machinery at its current price.
Conclusion
Taking a Machinery Loan is a comprehensive solution for helping your heavy-duty business grow. The biggest advantage is that it makes the funds available without any hassle. You can find different types of Machinery Loans offered in the market; so, it is advisable to choose the one that best meets your requirements. Do your research and find a lender that offers the best features and terms before applying for a loan.
Frequently Asked Questions
1. What is the interest rate on a Machinery
Loan?
You can avail of a Machinery Loan from
Poonawalla Fincorp at attractive interest rates, starting from just
9.99% per annum.
2. What is the tenure of the
machinery term loan?
This will differ from lender to
lender, but you can get Machinery Loans with a repayment period
ranging from 12 months to 60 months.
3. What is the
importance of machinery in business operations?
Machines are critical means of production for a wide range of
heavy-duty businesses. They boost production and save labour and time
while producing high-quality products.