Gone are the days when a person wanting to start a business, faced difficulties in scaling up the business and had to make a compromise with the stagnancy. Post liberation as the market opened, opportunities started showering for the Indian business.
With financial banks, private equity firms and Non-Banking Financial Institutions (NBFCs) also started investing in the Indian Business Diaspora.
Here are the 6 ways by which a business loan can help in growing the business:
Businessmen who are at the initial stages of business should have an attitude of ‘Start small & Think Big’ where they should use their own money or they can borrow money from family and friends to kick start the business.
If bootstrapping the business, requires more funds then they can use business credit cards at a lower rate of interest for borrowing cash to support the setting up the business. The early stage of the business can also use debt financing to get the business off the ground.
Debt financing is a way where the firm raises money that is used for capital by selling debt instruments to investors and the individual or the institutions who lend money, become the creditors and the mutual agreement is created that the principal & interest on the debt will be paid regularly.
Angel investors can also be a good source of capital for the business. To grab angel investor’s attention a solid business plan needs to be put together with a great pitch so that the ball is in their court.
New Equipment to Expand Production Can be Funded
Purchase of new machinery & equipment is done in order to increase production. As the production capacity of the firm increases, the firm gets more orders from the clients and the business starts growing.
While buying new machinery or equipment, the business owner might use term loans or asset-based lending, where the business owner will have to pledge the asset as the collateral for which he is borrowing the business loan.
Both service & manufacturing industry require infrastructures such as factory, office, furniture, network, accessories that create a positive impression about the company in the eyes of various stakeholders such as employees, investors, customers, clients, etc.
The physical presence of the company bestows a strong identity to the company. The short term finance is readily available which is provided by the NBFCs such as ZipLoan for construction and renovation of office & factory building.
Hiring Talented Workforce
The growth of any organization depends upon its workforce or people. Hence it is imperative for the business owners to recruit talented and educated workforce, and hiring them is not a cheap bet.
Business owners have to pay good salaries to hire a talented workforce, and if the business owners are short of money, they can look for short term business loan and hire a talented and hardworking workforce
Fund Required for Marketing Budget
To increase the sales and brand presence of the organization, the company has to do marketing activities like BTL, ATL, social media marketing, market research, trade fairs that help in generating leads of the prospective customers.
The business owners often fell short on the marketing budget and miss out on the opportunities that can create a strong brand presence and be a part of the customer consideration set.
The business owners can opt for short term business loans and can smartly select the channels where they will get the maximum customer reach.
To Meet Operational Expenses
For running a business successfully, the entrepreneurs have to manage the operating cost-efficiently, otherwise, the cash flows start burning out and lack of funds impact the consistency. To manage the operation cost well, the business owners have a lot of option to take working capital loans from various banks and NBFCs that are available for both short term and long term.
Business Loan from ZipLoan
Gets business loans in just 3 days from ZipLoan. Business loans ranging from 1 to 7.5 lakhs are provided by ZipLoan, the leading NBFC Company of Fintech sector, in just 3 days, the special thing about taking a loan from ZipLoan is that there is no need to pledge to take a loan from here.
Benefits of taking Business Loan from ZipLoan
- Collateral free loan – The Company does not pledge anything against the business loan. This benefits all traders who have nothing to pledge. A large number of small and middle-class traders benefit from lending without collateral.
- Repay the loan in easy instalment – After taking a business loan, traders can return the loan amount in easy instalments between 6 months to 24 months.
- After 6 months prepayment charges are free – After 6 months, loan prepayment charges become free. This means that you have received your loan for 24 months, but in the seventh or eighth month, you have such a balance that you want to repay your loan amount. Other companies have to pay a separate penalty charge for this item, but ZipLoan traders can return the loan amount any time after 6 months.
- Get business loan easily from home – One can get a business loan from their comforts of home. All processes are completed online. Businesses do not have to run anywhere, from applying physically to submit necessary paper documents to the company as everything is done online.
Eligibility Criteria of Business Loan
We have kept our eligibility minimal to let more and more business owners get access to funds for their business. We don’t require a long list of documents for business loan approval.
- An established MSME with a proved business vintage of more than two years
- Minimum annual turnover of Rs. 10 lakhs in the previous year
- The business must not have any default history
- The income tax filed during the last year should be more than Rs. 1.5 lakhs
- The borrower should own either house or business premises
- Documents Required for MSME Loan
To avail a small business loan from us, you need to submit the following documents:
- PAN card
- Aadhar card
- Bank statement of the last nine months
- ITR of the last 1 year
- Business place address proof