Stability and proper management of finances are two factors that can reward a company with targeted profits. However, owners usually encounter several challenges while generating revenue and catering to operational costs.
Issues like inadequate working capital, overwhelming debts, lack of budgeting, inconsistent cash flow, poor marketing techniques, etc. are a few to mention. The best tactic herein is to choose affordable financing in the form of a business loan.
- According to RBI, loans sanctioned to medium-sized enterprises increased by 13.8% within March – September 2020.
Of the many financial products, business loans are among the most versatile options to address an enterprise’s funding needs and can be utilised in various ways.
5 Smart ways to utilise business loans
- Revamp your business’s website
Considering the heavy reliance of businesses on digital presence, typically through websites, revamping an existing site with an attractive design and valuable content is imperative.
- A study suggests that unattractive business websites receive 0 recommendations from 57% of internet users.
Given the increasing digital dependence, a business’ credibility is largely assessed by its website’s aesthetics and performance. A business loan can thus come in handy in enhancing the overall customer experience with visual prowess and content creation.
Some elements determining web development prices for convenient loan assessment are website hosting, domain name, website theme, logo, mobile responsiveness, Live Chat features, images, API integration, etc. To give you an idea on the pricing, e-commerce website development costs from Rs.25,000 to Rs.1 lakh. Further, the development of a corporate website is usually priced between Rs.15,000 and Rs.50,000.
- Consolidate smaller debts
Multiple debts lead to an increased outflow of money and also make managing creditors difficult. By using business financing, you can easily consolidate all small debts into a single credit. It makes EMI payments more manageable, reducing total outflow, easing repayment, as well as helping bring down the rate of interest. Moreover, availing such financing is a suitable solution to what you should do when your business is in debt.
- Go for office expansion
To expand your business physically, you can open an outlet, a manufacturing plant or start operations at a new location. Here, business finance can suitably help purchase real estate, buy equipment and machinery, invest in infrastructure, and cover all other expenses involved.
You can also lease premises and renovate the existing office, thus, expanding the business efficiently. Make sure to check out a few tips of business expansion to another city before starting out.
- Recruit seasonal staff
Companies with a predictable customer inflow every year for specific times of a year need to hire seasonal employees in such months as well. However, the entire process of interviewing, screening, and training the workforce calls for a substantial investment in business finance.
One can thus conveniently finance the overall expenditure with business loans of up to Rs.20 lakh and repay easily over a suitable tenure.
- Restocking inventory
Replenishing current stock is one of the crucial aspects of inventory management in an enterprise, which also largely determines business supply. One must thus ensure to replenish the shelves with fresh stock using a business loan. You can purchase raw materials, finished goods, work-in-progress, packaging materials, safety stock, etc.
Before availing the advance, a solid financial plan for the business is necessary too after a thorough assessment of your monetary requirements.
Of the several lenders available, choose a reliable one who offers high-value financing at nominal interest rates. NBFC like Bajaj Finserv further bring features like flexible repayment options, manageable EMIs, instant approval, minimal documentation, online account access and more.
The lender also comes with pre-approved offers which make the process of financing hassle-free and help save time. Existing customers can avail such offers on business loans, personal loans, and a host of other financial products. To check your pre-approved offer, provide a few necessary details only. Ideally, business owners should lay emphasis on what promotes growth and expansion of their enterprises. Prudent spending decisions must aim to bring returns on investment (ROI) on the borrowed funds. As a borrower, you can thus plan to use a business loan effectively so that your requirements are fulfilled adequately, and keep you off unnecessary debt accumulation.