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How Seasonal Businesses Can Use Flexi Loans To Boost Revenue

  • Highlights

  • Flexi loans act as an emergency fund in times of need

  • These loans offer loan limits of up to Rs. 30 lakh

  • You can choose to pay only the interest as EMI

  • Withdraw when you need, repay when you can

A seasonal business, like a Christmas decorations shop, a ski lodge, or even a tax preparation office, would have their revenue inflow only on a seasonal basis. Thus, they may find it difficult to meet their fixed costs during the off season, and it takes some serious business and financial planning to meet those costs.
Managing cash flow for a seasonal business is about ensuring that you have enough money to meet your needs when your sales are low. To do this, you have to understand your sales cycle and your market. This allows you to know the impact of your sales cycle on your operations and cash flow, and if there is anything you can do to generate revenue during the off season.

Steps To Prepare For A Business Downturn

There are several measures you, as a seasonal business owner, can take to ensure your financial security when the cash inflow is low. Here are a few:
1. Have An Emergency Fund: It’s always a good idea to have an emergency fund as back up for when you’re down. You should save money for a rainy day, instead of spending all of it.

Additional Read: Flexi Business Loan Vs. Term Loan

2. Plan Your Future Finances: Try to anticipate any major expenditure you may have in the next couple of years, e.g. upgrading equipment or needing new technology. Have a separate fund for these expenses as well, and ensure to keep adding to it during high season.
3. Reward Key Employees: Rewarding key employees who contributed greatly to the company is a great way to retain their loyalty. However, make sure to let them know that the bonus or incentive is a result of the company’s success and is discretionary.
4. Make Smart Investments: When you understand the keys to your business’ success, it becomes easier to know what you should invest in to move your business forward. You can find additional services or products to sell in the off season that will help you generate revenue even then.

Additional Read: How to Raise Funds For Business In India

How Flexi Loans Can Help

Flexi Business Loans are a unique offering by Bajaj Finserv. These loans offer loan limits of up to Rs. 30 lakh. You can withdraw the money in parts or as per your requirement. The loan also features flexible repayment options that allow you to prepay the borrowed amount any time before the end of the tenor, at no extra cost. Moreover, you can choose to pay only the interest as EMI - the principal amount needs to be paid only later. This means an almost 50%

reduction of EMI. Additionally, the interest needs to be paid only for the amount you have borrowed and not the full amount. What’s more, these loans come with a 48-hour disbursal period, making them an easy and quick source of cash. Thus, overall, Flexi Loans give you a very flexible source of funds when you need them.

Bajaj Finserv Flexi 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.

As a seasonal business owner, these features are exactly suited to help you finance your business during the off season. You may not need the full amount all at once, so you can borrow the amount you need and will have to pay the interest only for that amount. Since you are paying only the interest as EMIs, it is also easier on your pocket every month. Moreover, the flexible repayment tenor allows you to repay the money during your high season, when cash inflow is more.

Additionally, thanks to the 48-hour disbursal period, you can very easily meet any short-term liabilities. Therefore, Flexi Business Loans are perfectly suited for the seasonal business owner, as they allow them to access credit much faster, and at comfortable interest rates.

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