<div>5 reasons why engineers would need loans</div>
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5 reasons why engineers would need loans

  • Highlights

  • Expand operations with an engineer loan

  • Meet expensive purchases and use technology

  • Automate businessto boost profits

Numerous operations of your engineering business require finance,be it during daily business operations or during an expansion phase. If you have an engineering firmof your own, it is important to anticipate your needs and understand how they can be financed with the help of an engineer loan. Take a look at 5 such uses and how a loan for engineers can give you the boost your business needs.

1. To expand your manufacturing business:

Expansion of any business comes with a range of expenses, but these expenses are greater if you have a manufacturing business. For an engineering firm, these expenses can includeconstructing new premises, integrating robotics or drones into the production process or improving economies of scale by making bulk purchases of raw material.
For example, if you have a doorbell manufacturing company, you may want to purchase electromagnets, buzzers, switches and buttons in bulk so that you can gain from the economies of scale and lower production costs. Funds from this loan could also go towards hiring skilled labour or training

existing labour force. You can also use it to construct or buy a storage facility to storeorders until they have to be dispatched.

2. To convert receivables into cash:

Receivables refer to the money that is due to your company. If your credit cycle is long, it will take longer for you to receive this payment. As a result, you may face struggles with regards to paying creditors or suppliers of raw materials. In the long term, you must focus on improving your credit collection process to convert receivables into cash quicker. But, to improve immediate liquidity and boost your cash flow, you can rely on funds from an engineer loan.
You can also take a Flexi Term Loan for Engineers and make multiple withdrawals on your sanctioned Flexi Loan limit and prepay funds as you receive payments from clients. You also get to save up to 45% on your EMIs as here you pay interest only on the funds withdrawn by you and not the entire loan amount.

3. For small- and medium-sized IT companies:

IT companies often have various costs associated with operationthat could be easily funded via an engineer loan. For example,for a small IT firm, costs like salaries, paying top developers and consultants can in itself be a challenge. Moreover, you need totrainand develop the workforce from time to time. An engineer loan up to Rs.15 lakh can easily be used to raise finance for these costs. Apart from this, the loan can also be used to lease or buycomputer equipment necessary for your business operations.

Top Business Opportunities for Mechanical Engineers

Benefits of engineer loans

 

4. For companies that need big data and IoT:

Big data helps firms manage large databases by capturing, managing and processing data with low latency. These softwares are often expensive but greatly beneficial. Hence, an engineer loan can enable your company to purchase this without any hassle. The same appliesto IOT systems. Internet of Things can help speed up the production process by stimulating communications between devices. This too can be an expensive affair and hence will require an external source of finance like an engineer loan to facilitate its absorption into your company’s processes.

5. To facilitate automation in your firm:

If you have a manual or semi-automated firm, you can boost its productivity by automating your business and introducing new machinery. Equipment can help you double your output over time without increasing your per unit cost.On the contrary, the automation of your business can help you reduce expenditureon labour and also help you reduce your unit costs. Automation also enables you to track your business success and keep an eye on your business’ operations. But, the proposition of automating your business can be quite expensive and will need the purchase of automated workflow software like Integrify. You may also need a software such as Synchro PRO to schedule production.Purchasing these using just a cash reserve can be difficult. This is where a loan for engineers comes in handy. It can help you completely automate your business operations for better efficiency and greater profits.

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