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.
