Machinery Loan for Heavy Duty Business

Why Machinery Loan is a Crucial Aspect for Any Heavy-Duty Business?

August 22, 2023 • 4160 views

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.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Machinery Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

We are a team of expert writers and editors passionate about providing our readers with authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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