We are going to tell you the story of brothers Ramesh and Dinesh who started their business together. Both brothers started the same business. Ramesh and Dinesh’s business was in manufacturing i.e. Product making business.
A few years later, one of the brothers, Ramesh bought machinery in his business as per the requirement and took his big business to great heights. When the business increased, profits also increased. This means that Ramesh collected a fair amount of money for his business.
However, the other brother Dinesh stood at the same place, where he was before when he started the business. He couldn’t grow his business as he did not purchase the machinery that was necessary to increase his income.
Now we will find that factor by which one brother had grown his business but the other brother was still like his early days. One of the factors behind the growth of his brother’s business was the machinery loan.
The brother whose business grew, got that growth because he took a machinery loan when it was required. There was no interruption in his business due to the support of the machinery.
The second brother withdrew from taking machinery loan being afraid, that his business will not grow and as a result, he was still there after 4 years from where he started.
This short story leads to the conclusion that while dealing with the same product, one brother’s business grew but the business of the other brother did not grow.
If we discuss the reason, it will come out that Dinesh’s business lags due to a lack of proper understanding of finance, not deciding to buy machinery at the right time and lack of ability to take the risk.
Due to a lack of machinery in the business at the right time, the production in Dinesh’s business stopped and there was no profit. Some people may also say that Dinesh may not have enough money to buy machinery.
This may be true, but Dinesh could have made better profits in his business by purchasing machinery using machinery loans.
Today, machinery loan is a very good option for the manufacturing sector. Through machinery loans, traders can buy machinery and other necessary equipment and expand their business. Let us know how to get a machinery loan and what paper documents are required.
Table of Contents
What is a machinery loan?
For the micro, small and medium industries (manufacturing and service sectors), what is most important is machinery and equipment. Without the machine and equipment, it is difficult to produce anything in the enterprise.
The present time is a period of intense competition. Everyday new technology is coming and technology is getting advanced. In such a situation, relying only on the old machine is very dangerous for the business. Your competitor may use advanced machines to produce more and your business may go backward.
New machines increase speed. When the speed increases, the production increases automatically. When production increases, profit also increases, ie. it is a circle.
In such a situation, if a businessman says that he does not have enough money to buy new machinery or get new parts in an old machine. So here comes the machinery loan.
Loans are given by NBFC companies and some public sector banks to purchase machinery and to install new parts in the old machine.
In this way, even if the businessman does not have all the money, the new machine comes or if the old machine gets new parts, then the profit increases. After the profit, the businessmen repay the business loan amount.
Apply for Working Capital Loan
How does machinery loan help in increasing business?
Machinery loans can benefit a businessman in many ways. Let’s look at some key advantages:
Increased production
If the machine is equipped with new technology, then it has more production capacity. When the machine works faster, the production is also more in less time. It directly benefits the businessman.
More production in a short period leads to higher profits which directly benefit the businessman.
Making quality better or improving quality
What is most important in business is the customer. Where the customer gets a better quality product, he becomes a permanent customer. When the customer needs things, then he always goes to the same outlet.
Machinery with better technology guarantees better products. The quality of the product already in the product line improves. With this, the customer who purchased the product once will always continue to buy it.
Increase in business profits
When the customer will get better quality products then it is obvious that he will buy the same product again and again. This way the customer gets a better product and the businessman gets better profit.
In this way, there are so many benefits from a machinery loan. All traders should take advantage of these benefits. Now if you have a question of where to get a machinery loan, then the answer is: Loan for the machine will be available from ZipLoan.
Get machinery loan from ZipLoan in 3 days
ZipLoan’ is the leading NBFC i.e. non-banking financial company in the fintech sector. Machinery loans are provided to micro, small, and medium businesses by the company. To increase business, business loans ranging from 1 to 7.5 lakhs are provided in just 3 days on very few terms.
There are very few terms to get a business loan from ZipLoan :
- Business should be at least 2 years old.
- The annual turnover of the business should be at least more than 10 lakhs.
- ITR filled last year should be Rs 1.5 lakh or more.
- One of the house or place of business should be in its name.
There are many advantages to taking a business loan from ZipLoan
- Business loan amount is available within 3 days of applying. (This facility is available when necessary paper documents are available)
- The loan can be applied online from home.
- Business loan amount is prepayment free after 6 months.
- You can repay the loan amount between 12 to 36 months.
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