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How an engineer loan can help you manage your working capital effectively

  • Highlights

  • Preserve working capital when expanding

  • Reduce inventory costs

  • Manage cash flow problems

  • Fund instant cash needs with engineer loans

As an engineer who is also a businessperson, your responsibility is to find the balance between creating quality products or delivering superior services, while ensuring that your firm is profitable in the long run. In this regard, you will need excellent working capital management skills. One way of doing this is to rely on a flexi loan for engineers. No matter what the situation, you will find that you can use funds from this loan to manage your working capital.
Here are a few ways in which you can use this loan to do this.

To manage infrastructure costs when expanding

If you have an electrical engineering firm that manufactures universal remote controls for gadgets, for example, after a few years of setting up your firm, you may want to expand to larger facility with a factory floor and a spacious office. To do this, you will require ample capital to lease the space, buy office furniture and rent the necessary equipment to manufacture remote controls on a large scale.
In such a scenario, a flexi loan for engineers will give you the high amount of funds that you need. You can take care of all set-up costs with

its help and use your working capital to pay other costs like procuring raw material, paying salaries, etc. This way, you will be able to make the shift without putting undue pressure on your business finances.
The special feature of these loans is that you can withdraw as and when an expense arises and repay when you get paid by your clients or customers.

To clear inventory quickly

Say you have a high volume of manufactured remotes in your warehouse. This means that you will have to spend on maintaining the inventory. After all, you will have to keep it safe and protect it from humidity, harsh heat and moisture that are known to damage electronics. This will deplete your working capital steadily. So, it is in your best interests to clear inventory quickly.
If you find that the volume of orders is not sufficient, you can use funds from an flexi loan for engineers to create a marketing strategy for your products. Apart from spreading the word, you can participate in trade events or even advertise and author articles in magazines such as Electrical India. These efforts will help you clear your inventory quickly, and so, keep you from depleting business revenue.

Top Business Opportunities for Mechanical Engineers

Benefits of engineer loans

To manage a situation where cash flow is negative

To cater to a large order of 50,000 remotes, for instance, say you have to spend Rs.4 lakh on buying raw materials, packaging materials and hiring 10 extra part-time employees. Besides this, you also have to pay for your office’s rent, salaries and utilities, which takes up a significant part of your working capital. While the client has promised to pay you within a week of delivery, you find that he fails to do so. As a result, your working capital bears the brunt.

Meanwhile, you have to start working on the next order. You need to buy more raw materials, but you don’t feel comfortable tying up even more of your working capital in raw material inventory. In such a situation, you can use a flexi loan for engineers to give your working capital a boost. By replenishing it using the loan, you can make the most of any business opportunity that comes your way and ensure that a lack of working capital doesn’t stall business operations. In the future, you can streamline payment processes to make sure that the working capital cycle is shortened. These loans offer quick approvals in 24 hours, give you the necessary flexibility to manage urgent and instant cash needs. They are an economical way of funding your working capital as they reduce your EMIs by up to 45% as here you pay interest only on what you borrow and not the whole borrowed sum. Furthermore, you can also choose to pay interest as your EMIs and defer to pay the principal at the end of the tenor.

So, the next time you’re faced with a scenario where your working capital is low, turn to a flexi loan for engineers to ease the pressure. It is a convenient and hassle-free way to manage your working capital.

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