Prompt capital infusion into a business opens up doors of opportunities and prepares it to deal with challenges obstructing its path to success. An online Business Loan can support you during financially tough stints and help you overcome challenges. If you are a small business owner applying for a loan for the first time, here you will learn how the funding option can help expand your business.
Purchase New Machinery
Keeping your business up-to-date with the latest machinery is essential to maintain optimum production. However, purchasing new machinery is expensive, and a Business Loan gives easy access to the required funding without consuming the company’s profit. Some private and government Business Loan plans also provide equipment finance. You can use this option to purchase your machinery on EMIs and repay it through a convenient repayment tenure.
Invest in Marketing
Focussing on digital marketing strategies is vital these days to enhance your online presence in the current digital era. Efficient marketing increases your sales, makes your business visible to more target audiences, creates a positive image, and improves your return on investment. However, creating and launching a targeted marketing campaign requires considerable investment that you can get through an online Business Loan.
Hire and Retain Efficient Staff
Your team members are the backbone of your company. If you plan a business expansion, you will need to hire and retain more skilled staff. However, paying their salaries and keeping them happy is financially challenging, especially during the initial expansion stages. A Business Loan will provide much-needed financial support if you need funds to hire, train, or incentivise employees.
Pay Suppliers
Your firm’s success heavily relies on how you develop relationships with your suppliers. Most relationships suffer due to late or non-payment of raw materials or inventories. An online Business Loan resolves this issue and lets you receive products or raw materials during tough times.
Improve the Workplace
Do you plan to shift to a new workplace or upgrade the existing one? Get sufficient funds from a Business Loan and invest in various areas, including furniture, computers, stationery, etc. Online Business Loans with an affordable interest rate can provide financial support to achieve the goals.
Launch a New Product
Adding new products or services to your offerings is one of the best strategies to attract new customers and expand your business. With a new product, you can reach out to new customers and also gain the trust of existing ones. While you will need advanced technology, raw materials, staff, and other resources for the new launch, a Business Loan will provide the required funding.
Purchase Bulk Inventory
When planning to scale up the production, you will need bulk inventory you can purchase with a Business Loan. Several government Business Loan schemes financially support SME owners to overcome business-related challenges and fund growth. These loans provide lump sums to cover big-ticket expenses or manage the inventory cycle.
Acquire a Competitor’s Business
Acquiring a competitor’s business is one of the fastest and easiest ways to grow your business while eliminating rivalry. Moreover, the strategy builds your brand reputation and strengthens your client portfolio.
Pay Off Liabilities
If you receive funds from private equity, you must share your profits and company ownership with them, reducing your profits and impeding your growth. You might also have borrowed other loans at high-interest rates and under difficult terms and conditions. You can repay such debt using an online Business Loan and give your company complete growth opportunities. By applying for a low-interest, unsecured Business Loan with a flexible repayment term, you can easily pay off your liabilities and finance your business growth.
Build Creditworthiness
An unsecured Business Loan gives you an excellent opportunity to finance business growth and build credit simultaneously. Borrow an online Business Loan at a low-interest rate and opt for a longer repayment tenure to pay its EMI promptly and conveniently. In this way, you can build credit over time and improve your eligibility for bigger loans in the future.
Set Up a Professional Website
Growing a business in today’s digital age is only feasible with a website. A professionally-designed website will increase your reach and expand your clientele, considerably increasing your profit. Apart from getting a new website, you can also use an SME loan to develop a mobile app for enhanced visibility and reach.
Sell on Credit
Do you plan to expand your business to a new location? You will need a sufficient amount to conduct market research, analyse competitors, and launch at the right time. A good strategy to attract new clients is to sell products or services on credit. Although it may initially impact your cash flow, it will increase your business in the long run. However, by the time your cash flow gets on track, you can cover your operational expenses with a Business Loan.
Steps to Get an Online Business Loan
The process of getting an online Business Loan depends on the lender’s policy and your loan requirements and eligibility. These are the general steps to follow:
- Evaluate Your Loan Requirement: Evaluate how you plan to expand the business and calculate the costs involved.
- Research the Funding Options: Compare different lenders’ interest rates, loan amounts, eligibility conditions, repayment terms, additional charges, customer service, and other factors before finalising a loan deal.
- Gather the Necessary Documentation: After finalising a loan plan, enquire about its documentation requirements and gather the necessary documents. Although they vary by loan type and lending institution, these include tax returns, financial statements, business plans, etc.
- Apply: While most loan providers support 100% digital loan procedures, some lending institutions still demand in-person loan applications. Follow your preferred loan provider’s application process to apply.
- Get Approval and Disbursal: You will get a reference number with your application. Use that number to track your application status and provide additional information if requested. Once they approve the loan, you will get disbursal directly into your bank account.
An online Business Loan is a popular alternative for business owners who want to remain competitive. With low interest rates and flexible repayment terms, new-age NBFC Hero FinCorp offers easy access to unsecured Business Loans of up to Rs 40 Lakh to ensure your business’s success.