Businesses throughout the world are often too late in expanding their Business lines. They often tend to chase a preset milestone which is considered as a mark of achievement before evolving the business into its next phase. And more than often, it becomes too late. Expanding businesses at the right time is of paramount importance to survive in this global market of today. While most entrepreneurs are able to identify their business expanding, few remain privy to the very fact. In this paper, we are going to address some of the most important reasons why getting the right business loan for meeting your needs is essential.
5 reasons why you might need a business loan to support your expansion plans
Recruitment:If you’re planning to expand your team and get more experienced profiles or experts on board, it will set you back by a considerable sum. But, if you’re confident that with those skills in your team, your business is going to have what it takes to propel your business to its next phase, you should consider getting a business loan to execute the plan if you’re falling short of funds. For, there are many agencies that will help you get that loan, but there might not be many people who’d have your idea that could revolutionize the world.
Opening new product lines:So, you’re business is killing it, and the quarter on Quarter revenues and business metrics are increasing exponentially. This is a good time for your business to venture into new or related domains. Having new products lines increases your brand’s presence and helps you work towards generating multiple income streams. To help entrepreneurs realize this dream, there are private, public, and government lending institutions ready to provide the secured and unsecured business loan to the right applicant.
How does one become the right applicant?Having an excellent or a satisfactory credit score and a working relationship with the lending institution is the primary and most salient point. The second is when you are backed with all the data points to you need to assure the lender that the growth trajectory you’ve predicted is achievable with the added help.
Revamping infrastructure:To begin with your startup was a bootstrapped one with just a dedicated team, a groundbreaking idea and a never ending urge to see it succeed. Having used all your savings for giving shape to your dreams, your business has soared and is in the path of seeing success. As an entrepreneur, you now wish to move from 1BHK flat to a commercial property to set an official presence and attract more business. To get this done, you’d need new equipment, rent a place, get the furniture among a plethora of expenses.
Business loans can be your go-to solution to fix these in a jiffy.
With fixed and floating interest rates, flexible repayment options, and access to funds ranging from five to twenty five lakh rupees, flexible eligibility criteria, business loans could be the best fix.
Exploring new avenues (R&D):As a business oriented organization, the only way to move ahead is by embracing change. But like several smart businesses, anticipate the change and be ready to seize the day when the moment arises. How can your business be ready for the future? The answer to this is simple, and the answer is ‘research and Development’. Having a dedicated research and development team to help steer your business in the right direction is something every micro, small, and medium business should look for. But, if funding the R&D team from the business turnover is something that gets you sceptical, then, going for a business loan is a viable option. For, its disbursement can be chosen by you according to your preferences. The option to withdraw and pay according to your needs brings ease into this process in ways more than one.
Thus enabling your organization to grow while constantly not being hammered about trivial stuff.
Sourcing raw materials/ products:Your organization could be a manufacturing company or be into distribution or be a service based company. Sourcing raw materials to run these organization is expensive and sometimes getting an adhoc equipment here or collating extra raw material there on short notice can be troublesome. To address these time sensitive nuances, having access to an additional pool of capital always helps.
With private and public institutions willing to expedite growth in small and medium businesses, the process of applicants receiving business loans has now become linear. With the infusion of technology, business loans are now processed in exponentially reduced timelines without the involvement of middlemen. Thus making it cost effective, swift, and efficient.
Expanding current businesses has always helped them set deeper and impactful presence in the community and get a larger share of commerce from the market. With the right business expansion modules, agencies and organization have skyrocketed their growth trajectories and made their brand known globally.
With a plethora of business loans like SBAs, term loans, signature loans, merchant payouts, credit cards, line of credits, government aids like Pradhan Mantri Yojana, Startup India, and Standup India, it is now more accessible and fungible for entrepreneurs and small businesses to raise the required amount of capital to realize their business expansion plans. For those entrepreneurs who do not wish to or cannot offer any sorts of property as a collateral for the loan, unsecured business loan is a best bet. For those who can, choosing a secured business loan like an SBA or a term loan would is advisable as it helps them get longer tenure and reduced interest rates for the raised capital.
If you wish to know more about the business loans your organization is eligible for, or if you wish to connect for expert advice, comment below and our representatives will get in touch with you.