When operated efficiently, the natural progression for any company is an expansion, and, as a business owner, you should be prepared for it when the time comes. Typically, scaling a business includes infrastructural upgrades, workforce enhancements, and increased working capital. These require ample funding, and dipping into your earnings isn’t always the most viable or recommended option.
In such instances, consider a secured loan such as the Bajaj Finserv Loan Against Property, as it grants a sizeable sanction of up to Rs. 5 crore and more at a competitive interest rate. With ample funding at hand, you can meet your monetary needs easily and recover the cost of borrowing from the revenue you earn, while availing tax benefits. Securing sufficient funds is the first and most crucial step to take. To know how to progress further, read on.
How a Loan Against Property can help you expand your business
Upgrade available machinery for increased output
If your enterprise is in the production line of business, machinery is among your most valuable assets. The quality and efficiency of these units dictates the standard of the output. So the enterprise must upgrade them at frequent intervals. This practice allows you to take advantage of newer technology that can simplify the entire process and even add efficiency. Better machines also reduce breakdowns and other failures that can hamper your output, thus minimising wastage and additional costs.
Purchasing improved machinery or making modifications to existing ones is expensive and can easily run into lakhs depending on the number of units with various charges on machinery. Nevertheless, with the Bajaj Finserv sanction of up to Rs. 5 crore at your disposal, you can easily commit to revamping your equipment and securing yourself with the best the market has to offer.
Additional Read: Use A Loan Against Property To Start Your Business
Hire additional staff to bolster the workforce
In order to efficiently upscale your business and increase the level of productivity, you may have to hire additional staff to your workforce over time. Unfortunately, this practice is usually expensive right from the early stages of shortlisting candidates. Further, recruitment implies having enough capital to support employee wages. Borrowing via a Loan Against Property allows you to bolster your working capital, which in turn ensures you never miss out on salaries or other workforce-related payments.
Lease or expand your workplace
Whether you want to lease a workshop in the industrial hub or a high-capacity office in the corporate space, larger operational premises allow you to accommodate more machinery and staff, directly contributing to the output of your business. Thus, this may be one of the first steps you will take when planning expansion.
Alternatively, you can also choose to renovate your existing premises to support your business plans. Whichever way you go, the investment involved is sizeable. The Bajaj Finserv Loan Against Property allows you to easily lease or renovate a workplace without cutting into your working capital and to take advantage of the low-interest rate to repay affordably over a long tenor.
Build up an inventory of high-grade raw materials
In some cases, expansion can mean simply building up the inventory with quality raw materials. This is specifically applicable to businesses in the production sector, as improving the materials affects the final output directly. However, simply purchasing superior materials isn’t enough, as you will also have to account for its storage and handling.
All the factors that come with investing in high-grade raw materials add to the final cost and, depending on volume, can range from a few lakhs to crores. Therefore, to keep your output numbers stable and on track, ensure to have enough capital in the pipeline beforehand.
Invest in research and development
R&D is an important part of expansion as it allows you to offer new products and services to the market. However, this involves various types of testing and prototyping even as your offering reaches the stage that it is market-ready. These account for development costs and can bear a hefty price tag depending on your business’s sector. To keep these improvements running smoothly, ensure that the research is well-funded with the sanction from a Loan Against Property.
Employ targeted and aggressive marketing practices
A must-have during business expansion is a revised marketing strategy. Aiming to enjoy the full effect of your efforts, you need to get the word out and inform the market about your company’s strengths and capabilities. However, marketing and advertising can be a very costly endeavour, especially if you want to stand out. For instance, targeted marketing strategies, while profitable, can cost you lakhs.
This is because you may have to invest in overhauling your website, hiring a marketing agency to manage your social accounts, or bringing onboard influencers. All of these are costly but necessary to expand successfully. Thankfully, with the Bajaj Finserv Loan Against Property, you can access the funding you need and repay the amount comfortably via a flexible tenor of up to 18 years.
Additional Read: Factors to consider for Loan Against Property
While you employ the above measures to expand your business, remember that when borrowing via the Bajaj Finserv Loan Against Property, you also benefit from additional value-added features. These include fast loan approval, zero prepayment charges on a floating interest rate loan, and the Flexi-loan feature. With the Flexi feature, you can borrow from your sanction at any time and only get charged interest on the amount withdrawn. Further, you can choose to pay interest-only EMIs through the tenor and repay the principal at the end. This allows you to reduce your monthly instalments by up to 45% and better manage your working capital throughout the tenor.
You can also enjoy a hassle-free loan application by applying online. All you have to do is check your pre-approved offer and get instant approval via a customised Loan Against Property deal.
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