Friday, 18 May 2018

5 Ways to Grow Your Company Using a Small Business Loan

Posted by RaviKumar Nama
(Published on 18-May-2018)
Small or big, every business requires capital for its growth. When you have capital, you are able to sustain and expand your business. Unfortunately, capital is scarce and you may always be looking to find ways to raise funds. One way to find capital is through institutional funding. Here are five ways that such loans may help your company to grow.


5 Ways to Grow Your Company Using a Small Business Loan

1.    Infrastructure development

Infrastructure needs are different for each venture; however, as your business grows there is an additional need for infrastructure expansion. Whether you need a new office or warehouse, or you need an additional manufacturing facility business loans help in growing the infrastructure of your venture.

2.    Inventory purchase

If you are a retailer, sufficient inventory and its accurate management are crucial. It is vital that you have adequate inventories to satisfy customer demand. A small business loan allows you to acquire inventory to meet the demand. You may use the money to purchase raw materials in order to increase the production and meet the customers’ demand.

3.    Human resources

Another important factor to grow your business is hiring experienced and professional personnel. Small and medium enterprises (SMEs) often are unable to grow their business due to lack of professional staff. SME loans do not have any limitation on the use of funds and you may use the borrowed sum to hire human resources and thereby grow your business.

4.    Website development

Technology has pervaded every aspect of modern life. If you want your business to grow, it is vital to have a presence on the World Wide Web. The first step to have an online presence is through a website. Capital finance may be used to hire a professional agency to develop your website and start your online journey.

5.    Operational expenses

Your business may have difficulty in meeting its operational expenses due to several reasons. An SME loan may be used to cover the shortfall during the short-term. Once the business requires, you may repay the loan to reduce your interest payout.

Before you avail of such a loan, you need to consider some important factors as listed below.
  1.       The amount of loan required
  2.       Chart out the fund usage
  3.       Time when you require the funds
  4.       Current financial status of your company
  5.       Ensure timely repayment of the borrowed amount
  6.       Collateral available to avail of the loan
Such loans have several benefits such as:
  •          Amount between INR 3 lakh and INR 75 lakh
  •          Competitive business loan interest rate
  •          Up to three years repayment tenure
  •          Top-up facility on existing loans
A loan is beneficial in overcoming fund requirements. You must check online for different options to make an informed decision. Apply for a loan today and grow your business to the next level.

Disclaimer:

This data is for Academic purpose only. The data published on this post is just my opinion based on my own research and analysis and is provided as a general market commentary. As it does not take into account of your personal circumstances, please do not invest based solely on this information. By Viewing any material or using the information within this post you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general information provided here.

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