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How Business Loans Help You Successfully Implement a Big Project

  • Highlights

  • Business loans help you invest in research, training, and development

  • They help you buy the latest equipment

  • They help you set up advanced infrastructure

  • They help you hire the right staff for your business

Availability of credit is crucial for any business. More so when it’s in the process of implementing a big project. However, the availability of Flexi Business Loans ensures your ambitious project doesn't hit a road block due to 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 which are appealing 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 mode of finance which can be used to fund your R&D and training activities. For example, funds can be withdrawn at your convenience for funding a research project and can be repaid with the generation of revenue by that particular venture.

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 equally important as your workforce. In some cases, you may need to import equipment. The entire process is expensive and needs a large amount of capital.
Business Loans are your best bet in such a situation. Through these loans, you can procure the equipment of your choice as and when required to shape your project.

Set Up Advanced Infrastructure

Big projects often require setting up advanced infrastructure to handle the requirements. Up-gradation of infrastructure and more so for greenfield projects requires a lot of planning and technical knowledge. There are a lot of nitty-gritty involved, including regulatory compliance. For example, consider the case of 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 infrastructural setup, escalating overall costs. Our Flexi Business Loans equip you with the required credit 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 New and Experienced Recruits

Big projects often require infusing new blood in 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 that in Tamil Nadu. Just like setting up new infrastructure, hiring new recruits has its own set of challenges. You may need to hire the services of an external recruiter. Also, you need to factor in the salaries of these recruits. On most occasions, experienced professionals command a high pay.
A Business Loan at this point ensures you are never short of funds to bring the best talent on board.

Factors to keep in mind when looking for a Business Loan

Financial Habits that will help you get a business loan

As a small business owner, you need to stay on top of your business’s finances, in order to ensure that your business keeps running smoothly and never runs out of working capital for its day-to-day operations. Additionally, you need to ensure that you are able to obtain external financing for your business when the time comes for your business to grow, or take on a large project. Here, we give you a few financial habits that every small business owner should have, that help you get a business loan easily when the time comes for you to apply for a loan.

Addressing Contingencies

Contingencies are a part of any project. They can be in the form of:
- Breakdown of an important machinery
- Increased cost of raw materials
- Introduction of new laws
These can result in cost overrun. To tackle these contingencies, you need access to immediate capital. Business Loans give you just that. Contingencies can also arise from 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 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 breaking into your other sources of finance.
It is very important to match the time line 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 capital crunch, as this can hamper your overall revenues. Flexi Business Loans are tailor-made for the requirements of 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 the gestation period of the project.

The Final Word

Finance is fuel that keeps a business running. In a competitive environment, the inability to implement a big project can affect your brand value.

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Flexi Business Loans - The easy way to manage your business finances