Investment in machinery or equipment comprises a major chunk of business costs, whether you buy or lease them. Upgrades and repairs are also recurrent considerations in your business financial planning. Whether you want to sustain the business or expand it, investment in equipment is critical for your company’s growth. Business Loans from Non-Banking Financial Companies (NBFCs) are a great way to fuel the momentum of your business expansion. It is important to identify the right supplier for your equipment needs, so that your financial goals can be fulfilled.
Here Are Some Things to Keep in Mind While Choosing the Right Machinery Supplier:
Ways of Searching for Suppliers
The search for suppliers is an ongoing process. It should never be relegated to the last minute. Common methods of knowing about the suppliers in your domain is the web or word of mouth. You can even keep an eye on the suppliers that serve your competitors.
Visiting expos and conferences relevant to your industry in India and around the globe is a good way of interacting with prospective suppliers. .
For example, INDIA PHARMA Expo will be held in Bangalore International Exhibition Centre, on 15th - 17th February 2018. The suppliers of various pharmaceutical machines, lab equipment, analytical instruments, and other equipment will participate to showcase their range of products. It is a great platform for pharma-based companies to meet the various suppliers in their field.
Additional Read: Why You Should Choose a Bajaj Finserv Machinery Loan
Economy Should Not Be the Only Criteria
Choosing the supplier just on the basis of the lowest cost, highlights a limited perspective. Quality, Quality upgrades, R&D, delivery time, and reputation are important considerations before zeroing in on the supplier.
Let’s consider the technological evolution in the textile industry. It can be mapped to basic power looms, semi-automatic looms, rapier looms, rapier looms with electronic jacquard, and so on. Can your supplier keep pace with the space of the technological upgrades? What is the depth of their R&D? It is generally easy to get upgrades from the same supplier, rather than buying new machines from a new supplier every time you want an upgraded version.
After Sales Service
You need to know whether the supplier is just supplying the equipment, or if they also provide related services such as installation and replacement of parts.
For example, you might decide to opt for solar-based electrification for your office or factory. There are solar companies who manufacture or import the equipment, whereas some solar energy solution providers are Engineering, Procurement, and Construction (EPC) companies who take care of all the services from installation, designing, and training. They provide after sales services which include maintenance, repair, or change of the different components of solar systems.
If your budget permits, it is better to choose a supplier who provides comprehensive services, including after sales.
To get the benefit of input tax credit, you need to make sure that your supplier has registered under GST. Once the supplier furnishes outward supply through Form GSTR-1 Return, the purchase is visible in the auto-generated Form GSTR-2A. You will get input credit only when the Monthly returns (Form GSTR-3) are filed by the supplier along with payment tax.
As you burrow deep into the search for the right supplier, you can avail a business loan to finance your equipment needs and help your business grow.
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