2 min read
20 August 2025

Every business — whether it is a start-up or a well-established enterprise — will need additional capital from time to time. This may be for expansions, to add a new product line or to buy seasonal inventory. So, business loans play an essential role in day-to-day operations and help in business growth.

Here are scenarios where business loans can help keep your firm financially healthy:

By boosting working capital for expansion and diversification

Use a business loan to fund new machinery purchases or to take machinery on hire. This will result in higher output and, thus, will increase your revenue. Machinery repairs also require capital and you can use a business loan to meet this expense as well.

This way, there will be no negative effects on your working capital. You will be able to run your business smoothly despite an increase in expenditure. You can take a business loan from Bajaj Finserv to add equipment to your firm. With a low rate of interest, quick disbursal and a flexible tenor, it is one of the best loans in the market.

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Business Loan
Business Loan

By financing inventory for new business opportunities

When new business opportunities knock on the door, you might feel unprepared. You may not have the required inventory to cater to the client’s requirements, for example. With a business loan, you don’t have to let a growth opportunity pass you by. You can build the inventory to pursue new opportunities by using funds from the loan. Financing inventory in this manner will help to free up your capital. Then, you can use it for other pressing requirements such as hiring an additional human resource.

By helping your business build a credit score

You can use a small business loan to meet current liabilities such as working capital requirements. But note that this will also help your business build its creditworthiness. This is an important factor for when you apply for high-value, long-term loans in the future. Lenders will examine your repayment record to understand whether you are a worthy applicant. So, taking a small business loan and using it wisely is an excellent move. Consistently managing loans will also help you secure better business loan interest rates in future financing endeavours.

By giving you flexible funds on your terms

A business loan is an excellent way to cater to unexpected expenses of any kind. You can make use of the Flexi Loan feature to use funds per your convenience. You can withdraw from the total Flexi loan amount as and when you need finance. Then, simply pay interest on what you use. The rest of the money is interest-free till you use it.

Besides, you can choose to pay EMIs comprising only of interest and you can repay the principal at the end of the tenor. Use a business loan as a stepping-stone to achieve higher sales, optimise performance and production, and to fund day-to-day operations. With its affordable rate of interest and flexible terms, it is the best finance option for your business.

To better plan your repayments, try using a business loan EMI calculator.

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