To ensure consistent productivity that contributes to better sales and growth, your firm requires the right machinery. You may need technologically advanced machines to reduce manpower, or require machinery simply by virtue of the industry you are in. If your working capital is insufficient to fund your machinery purchase or lease, you can opt for a convenient business loan customized for machinery. Called a Machinery Loan, this loan is available at nominal interest, doesn’t require any collateral, and is easy to apply for.
Here are situations where you can make the best use of a machinery loan.
1. When you are part of an industry that relies heavily on machinery
Whether it is agriculture, metallurgy, manufacturing, construction, transport, or medicine, if your business is part of an industry that relies on machinery and equipment, you are sure to benefit from a machinery loan. When your business productivity rests on the efficiency and speed of machines, ensuring that you buy the latest equipment is key. Secondly, you also have to spend consistently to maintain these machines and factor in cost of repair too.
Some machines may even require you to hire a technical expert who trains your workforce to use them correctly. In such cases, it is best that you chalk out the costs in advance, plan out whether an outright purchase or lease suits you better, and decide on a loan that offers you a flexible repayment tenor. Bajaj Finserv’s Equipment Machinery Loan, for example, offers loans up to Rs.20 lakh to SMEs including service enterprises and manufacturers as well as professionals like doctors.
Additional Read: Commonly asked questions around Machinery Loans
2. When you want to make the most of new business opportunity
Say you receive a large and unplanned new order. Fulfilling it may require you to increase your dependency on machines. It may also need to double up shifts. In such cases, a machinery loan equips you with needed funds to purchase or lease machinery. Here, your best option is to choose a machinery loan which gives you access to funds quickly. Bajaj Finserv’s Machinery Loan is not only easy to apply for online, but also offers you funds in just two days.
3. When you want to add assets to your business balance sheet
Buying assets for your business boosts your balance sheet and gives you a tax exemption via depreciation too. So, whether you are preparing your balance sheet to present to a prospective investor, or looking to save on taxes by building up your machinery assets, you can use a machinery loan to fund your purchase. If you find yourself buying machinery in instalments, you can use the unique Flexi Business Loan facility from Bajaj Finserv. Here, you can make multiple withdrawals from your loan amount and pay interest only on what you use. This helps you save on interest costs, and finances your machinery purchase in comfortable instalments.
Additional Read: Should you lease or buy equipment for manufacturing business
4. When you are getting a large number of machines at a discount
If you find yourself getting a discounted rate on the purchase of a large consignment of machinery, you can take advantage of it by using a machinery loan. Since this may require a substantial amount of money, which your current business earnings or working capital may not be able to fund, a machinery loan can offer to a solution to make the most of this opportunity.
5. When it is time for you to update or repair expensive equipment
Machines undergo a natural wear and tear due to use. Some machines may also require care when they haven’t been used regularly. In certain industries, machines need periodic software updates or even repairs due to energy fluctuations and other reasons. You can finance all these needs by taking a quick machinery loan that ensures your production isn’t hindered. Your business cannot always depend upon the funds you earn or exhaust the funds that you save.
Instead, you can use a machinery loan to buy, upgrade and repair needed machinery and equipment to keep your business running smoothly.
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