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6 Ways Flexi Loans for Engineers Can Help Your Manufacturing Business

  • Highlights

  • Manage unplanned expenses with Flexi Loans

  • Pay suppliers in advance and get cash discounts

  • Meet seasonal demand with adequate stocks

  • Fund business expansion and working capital

A Flexi Term Loan for Engineers is a scalable and versatile mode of finance, designed to address different un-planned financial needs of your manufacturing business. As any other business, a manufacturing entity has to face various situations when it gets under a pressing need for funds. Non-availability of the funds can lead to missed opportunities. With features like the ability to withdraw and repay funds as per the requirement, and interest charged only on the availed funds, these loans are designed to fit the needs of a modern manufacturing business.
Let us now know what makes flexi loans the smart mode of financing for manufacturing businesses.

1. Purchase Raw Materials

Cost of raw materials has gone up over the years thanks to inflation and economic policies. Buying quality raw materials is critical to sustaining your business. However, purchasing them at a higher price can impact your cash flows negatively, thereby hampering your operations.
Loans for Engineers offering funds up to Rs.15 lakh and can be availed in a flexi format which helps you get the instant liquidity to address ballooning expenses of raw materials.

2. Make Advance Payment to Suppliers

There are instances when you need to make advanced payment to suppliers to procure raw materials to start production. Paying your suppliers in advance can further entitle you to avail discounts on the orders. Also, a delay in payments may result in halting manufacturing, leading to a business loss.
Such advanced payments can be easily made with Flexi Term Loans for Engineers, as and when a payment needs to be made, you can easily drawdown from your loan limit and not make multiple loan applications.

3. Stock Up Inventory Ahead of Sales

Effective inventory management is one of the core mantras of success for a manufacturing business. It’s important to maintain the right balance to ensure there’s no under or over-stock of inventory. If you are into electrical manufacturing business, like ACs and heaters, you need to have optimum stock to address the rising demand during peak seasons. However, your financing option should be versatile enough to match your inventory.
To meet such changing inventory needs which can’t be exactly anticipated from before, Flexi Term Loans for engineers are an apt financing solution as you can withdraw as per your needs and pay interest only on the used sum.

4. Buy New Equipment

Replacing old, outdated, and faulty equipment with new machinery from time to time is vital for smooth operation and productivity of your business. Moreover, businesses should have enough funds available to buy replacements in case of a breakdown to avoid excessive downtime.
For example, if you are into manufacturing nuts and bolts, breakdown of nuts and bolts counting and packing machine can hamper production. The cost of a new machine is around Rs.6 lakh per unit. In such a case Flexi Term Loans for Engineers up to Rs.15 lakh can help you raise the desired finance for your business.

5. Funding Business Expansions:

When you expand your manufacturing business, you need money to:
-Acquire a plot
-Set up infrastructure
-Buy equipment
-Hire employees
-Comply with regulatory norms
Shortage of money during crucial stages of expansion can hurt revenues, delay projects, and escalate the cost. Moreover, an exact estimation of expenses involved in business expansion can be difficult, which can be easily resolved with a Flexi Term Loan.

Top Business Opportunities for Mechanical Engineers

Benefits of engineer loans

6. Sustain a Healthy Cash Flow

A healthy cash flow helps you effectively manage day-to-day expenses of your manufacturing business, such as paying vendors, staff salary and more. Flexi loans help you sustain a healthy cash flow for your business. With the option to pay only interest on the EMI, you can save 43% on your EMIs.

Also, you are charged only on the amount utilised and not on the entire loan amount. Thus, you save on a significant outflow of cash every month.As you can see, as a scalable and versatile mode of finance, flexi term loans for engineers are designed to serve your manufacturing business in multiple ways. With the feature of withdrawing and repaying funds as per requirement, short approval period and the option to pay only interest as EMI, they are tailor made for business owners venturing into the manufacturing space.

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The material contained in this site and on associated web pages is general information and it is not intended to be advice on any particular matter. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. The decision with respect to any financial product or opportunity or nature or suitability or choice or the viability of any product or service shall always be sole responsibility and decision of the subscriber and user.

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