Availability of credit is crucial for any business, especially when it’s implementing a big project. The availability of Flexi business loans ensures your ambitious project doesn't hit a roadblock due to a lack of funds. Here's how such loans help you successfully implement a big project.
Facilitates investment in research, training and development
Undertaking a big project warrants investment in research, training and development. Research involves identifying:
- Smarter ways of product development (PD)
- Hurdles in the project
Training and developing the workforce on the latest tools and technology in PD goes a long way in creating world-class products that appeal to the masses.
Note that R&D and training programmes require huge capital. For this, we at Bajaj Finserv offer Flexi business loans at a competitive interest rate. It is a scalable model of finance which can be used to fund your R&D and training activities. For example, funds can be withdrawn at your convenience for a research project and can be repaid with the revenue the project generates.
Additional read: Business ideas for women and how to arrange for funds
Buying new equipment
A big project requires specialised equipment. In a competitive environment, the quality of your equipment is as important as your workforce. In some cases, you may need to import equipment. The process is expensive and needs a large amount of capital.
Business loans are your best bet if you wish to procure the equipment of your choice when you need it to shape your project.
Set up advanced infrastructure
Big projects often require advanced infrastructure. Upgrading infrastructure, mainly for greenfield projects, requires a lot of planning and technical knowledge. There are a lot of processes involved, including regulatory compliance. For example, consider a business trying to replace its old coal fire boilers with advanced gas-fired ones.
Lack of funds at any stage can halt the process of setting up infrastructure, escalating overall costs. Our Flexi business loans equip you with the credit required to set up modern infrastructure to suit your requirements.
Additional read: Questions your business loan lender may ask when you take a small business loan
Hiring fresh and experienced talent
Big projects often require infusing new blood into the existing workforce. For example, a construction project may have to hire solar energy technicians to deploy rooftop photo-voltaic panels for regulatory compliance, like in Tamil Nadu. Just like setting up new infrastructure, hiring people has its own set of challenges. You may need to hire the services of an external recruiter. You also need to factor in the salaries of these recruits because experienced professionals command high pay.
A business loan can ensure you are not short of funds to bring the best talent on board.
Addressing contingencies
Contingencies are a part of any project. They can be:
- The breakdown of important machinery
- Increased cost of raw materials
- Introduction of new laws
These can result in cost overrun. You need access to immediate capital to tackle these contingencies. Business loans give you just that. Contingencies can also arise from the loss of manpower at an important stage of the project. In such a scenario, replacement at a higher cost becomes a priority.
Maintain a healthy cash flow during the gestation period
A new project has a gestation period during which you need to maintain a healthy cash flow. Business loans help you do that without touching your other sources of finance.
It is very important to match the timeline of revenue generation by a project with that of the debt servicing schedule. It is vital to ensure your current operations don’t suffer because of a capital crunch, as this can hamper your overall revenues. Flexi business loans are tailor-made for such projects. With the option to pay interest only on the funds withdrawn, it avoids any unnecessary pressure on the finances of a business during its gestation period.
The final word
Finance is the fuel that keeps a business running. In a competitive environment, the inability to implement a big project can affect your brand value. Opt for business loans from institutions like Bajaj Finserv to ensure the uninterrupted implementation of big projects.
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