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Sunday, January 12, 2020

Reasons you Should Choose Machinery Loan to Buy Heavy Machines


The fate of a manufacturing business is majorly dependant on the effective use of machinery. Proper use of equipment helps increase labour productivity, overall turnout, and decrease the time taken.
In the process, it also results in high profits. A business owner has to keep upgrading the business machinery and infrastructure with technological advancements from time to time.
Equipping proper machinery and tools could be an expensive undertaking. As such, the entrepreneur might experience a financial shortage to revamp or replace the machinery. In India, machinery loans are a great alternative to avoid such financial obstacles.
These are credit options providing funds to purchase new equipment, repair faulty machines, and many such situations that may require a machinery loan. It is an easy option of availing funds and also comes with several other benefits.

Reasons why a machinery loan is the best option to buy machinery

If you are running a business which requires heavy machines and ample manpower, managing funds to maintain both is vital to maintain proper business operations.
You can approach a financial institution to back you financially with a machinery loan.
Here are some of the reasons why such advances are best suited to purchase heavy machines -
1.      Substantial loan amount
You can borrow up to Rs. 30 Lakh as a loan to purchase machinery. Thus, it provides ample funds to suffice the cost of buying huge and expensive machines. You can also utilise the residue amount to meet other working capital requirements.
2.      Delivering top-quality products
Updated tools and machinery would also ensure the production of defect-free items. This, in turn, increases your credibility among the customers and builds a positive image of your company in the market.
Hence, these advances are not just a source of business finance but also a key factor in enhancing the efficiency of your business.
3.      Collateral-free and simple terms
A business owner is likely to be worried about the terms and conditions of availing a machinery loan.
But the simple and transparent policies of such loans help reduce the worries of an entrepreneur. Firstly, they do not require any asset or property as collateral. Secondly, the application process and eligibility criteria of these advances are simple.
4.      Faster turnaround
Having upgraded and advanced technology in your business will increase productivity and help in completing the orders faster.
This will ensure delivering the customers within the promised date and building a positive impression in their eyes.
5.      Nominal interest rates
Rate of interest chargeable on these advances is one of the most commonly asked questions about machinery loans.
With machinery loans, you can purchase heavy machines without bearing the burden of having to pay high-interest rates on the borrowed amount.
6.      Instant approval
Loans extended for machinery purposes are one of the best sources of business finance because these advances can be availed in the least possible time.
These advances are eligible for instant approval and can be disbursed within 2 days after the approval.
Thus, if there is an urgent need of the heavy machine in your business, you can purchase it without delaying much with the help of a machinery loan.
Loans provided for machinery costs are customised advances assisting not just small business enterprises but also established business companies.
There is no minimum turnover limit specified for borrowing a machinery or equipment loan. All it requires is that the business should have vintage worth at least 3 years.
Upgraded tools and machines help increase the net asset value of your business. Machinery loans help entrepreneurs to cope up with short-term financial shortage as well as build long-term efficiency of the enterprise.

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