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Acquire plot for expansion
Automate your warehouse
Install air pollution control systems
Finance is the lifeblood of any business and engineering is no different. Smart finance solutions decide whether a business seizes a market
opportunity or lets it slip.
Read on to know the signs that signify whether your engineering business requires finance.
Expansion of your engineering business is necessary when you find it difficult to meet present demands with the existing capacity or to cash on a market opportunity. However, a large chunk of money is required to acquire the plot where you will set up new operations. For example, if you are into manufacturing automotive components in India and need to augment your operations to cater to the rising demand (the industry expects an export of US$80-100 billion by 2026), you need funds to seal a plot of land for your new factory.
For the expansion of an engineering business, a mode of finance like a loan for engineers is essential. For example, acquiring a business plot in a prime industrial location like Noida with may cost over Rs.50,000 per square meter.
Warehouse automation is necessary for engineering business as it leads to better inventory management and reduction of wastage.
However, warehouse automation solutions are costly, and the price of a cloud-based software solution can go as high as Rs.5 lakh. Not only this, you need to train your staff on this advanced system and the training cost can go as high as Rs.3 lakh. Such costs can be easily funded with a loan for engineers that offers funds up to Rs.15 lakh.
The efficiency of your business depends heavily on the quality of your equipment. Modern and upgraded equipment expedites production, thereby bringing efficiency in operations. Old and outdated equipment not only hampers production but also puts a worker’s safety at risk.
You need finances to buy modern and upgraded machinery. For example, if you are into textile manufacturing, a modern textile finishing machine is of paramount importance. Depending on the features and specifications, such a machine can cost Rs.3-8 lakh.
An engineering business needs to comply with the latest environmental norms and standards. A 2014 working paper from researchers at Columbia USC and at UC San Diego found that the rise in air pollution decreases labour productivity. According to the paper, "There is ample reason to believe that modest levels of pollution may impair performance through changes in respiratory, cardiovascular, and cognitive functions."
Hence, it's important for you to install air pollution control equipment in your factory. For instance, if you have a steel re-rolling mill, such an equipment can cost you Rs.3 lakh per unit.
To keep your workforce competitive and productive, you need to train them from time to time. Quality training to your employees keeps them motivated as they get a sense of contribution to the organization.
For example, if you are into heating, ventilation, and air conditioning (HVAC) business, you need to impart training to your employees on the best practices on mechanical, electrical and plumbing (MEP). Training on MEP courses can go above Rs.1 lakh.
With scalable and versatile financing options like engineers’ loans at your disposal, you have access to the required finances to cash on an opportunity to grow your business. Be it expansion, need for technological upgrade or training your workforce with the latest skills, an engineer’s loan is the most suitable mode of finance to take your venture to the next level.