The expansion of your business depends upon its stability, and stability in turn depends on sufficient finance. A Business Loan is a convenient way to finance your growth and increase your revenue.
Stability and profit go hand-in-hand when it comes to the growth of your business. The more stable your business is when it comes to keeping up with new opportunities and demand, the more profit you earn. And when you earn more profit, you can further expand your business, by either opening new offices, widening your reach or diversifying into new verticals. But how can you give your business the stability it needs? The answer to this is proper cash flow.
If you have the required cash flow, you expand your business without a worry. Since growth takes substantial monetary requirements, personal financing is often insufficient. Secondly, since a business experiences both profit and loss, it is not wise to stake all your savings just by depending upon the profit you will earn one day in the future. So, what is the solution? The simplest way is to opt for business financing options such as a business loan. A business loan will ensure that your enterprise has the needed cash flow to grow.
Here Are Few Ways To Use A Business Loan To Grow Your Business:
- Fulfilling The Need For Working Capital:
Working capital refers to amount you need to finance your daily operations. You must have sufficient working capital to ensure that your business runs smoothly. A business loan in the form of a working capital loan can help you finance your working capital for hiring more employees, paying for a larger office or factory space, increasing your inventory, etc. Since a growing company requires more working capital, this can be a boon.
- To Relocate To A Larger Workspace:
When you start a business, you may prefer to work from a smaller space or from your home to save on the extra expense of rent and maintenance. As your business grows, the number of employees also grows and so do your business requirements. Be it a textile business or an architecture firm, you cannot set up your factory or practice in a small workspace. This may have been possible at the initial stage but with your business growing, it becomes difficult. But to re-locate to a larger space, you may need money that is not readily available from your profits. Here is when a business loan will come to your rescue. You can easily use the funds for relocating to a larger space and set up your workplace better.
- For Upgrading Machinery, Technology Or Buying New Equipment:
In today’s world, every business needs technology to ramp up its operations and increase efficiency. Whether you need the latest software and computers or the right machines and equipment to fulfil demand, ignoring these needs can cost you loss of revenue in the long run. Since all this comes with a steep price tag attached, you can use a business loan to tackle expenses. If you are upgrading machinery step by step rather than all at once, you can go for a business line of credit. This allows you a credit limit for a chosen tenor. You can then borrow as much as you need and pay interest only on the amount borrowed. You can manage your cash flows with ease too since a line of credit only charges you the interest as EMIs.
- To Maximize Your Marketing Efforts:
Marketing plays an important role in business growth. With right marketing strategy your business can attract more clients or reach new markets. Choose a marketing plan that works for your business, be it via digital advertising, publishing advertorials in newspapers and magazines, outdoor advertising via hoardings or participating in exhibitions and seminars. Take a business loan to put your best marketing efforts forward and see your growing business reap the benefits.
- To Buy Raw Materials And Stock:
Some businesses require a steady supply of raw materials and stocks to ensure smooth operation. If you are involved in such a business, say textiles or retail of goods, it is compulsory to have your stocks updated especially during high sale seasons like festive seasons. However, the costs of such inventory may fluctuate depending on demand. When you want to prepare for a season when you anticipate greater sales, ensure that you take a business loan to keep from skimping on enough stock. This will ensure that your expanding business can fulfil market demand without a shortage.
- To Diversify Into New Markets Or Verticals:
Whether it is to enter a new city or offer an allied product or service along with what you already do, a business loan can be the answer to diversification. Your growing business will need funds to support its expansion, be it for more staff, wider marketing efforts, new stores or offices, etc. But before you do this make sure your business is stable enough to diversify with the right capital in hand.
See your business grow with Bajaj Finserv’s Business Loans, which offer you collateral-free loans at a competitive interest rate and with a flexible line of credit facility.