Chartered accountants combine the skill of strategic decision-making with a deep understanding of personal and corporate finances. Depending on your specialisation, you may be an expert in matters such as tax, mergers and acquisitions, or valuation.
Since you're in the business of managing money, you know the benefits of timely infusion of funds for a firm. See how a business loan for chartered accountants can bolster your practice.
1. Finance your organisation’s working capital needs
Being a chartered accountant, you must be aware of the importance of balancing your current assets and current liabilities. Flexi loans are a smart way of managing your working capital needs.
- Paying day-to-day expenses: Working capital is essential for daily business operations as it is used to pay salaries, overhead costs and debts.
For example, assume that you have designed and printed greeting cards and ordered gift boxes for all your employees and clients to wish them the best in the New Year. You have splurged on this, as you want to build a favourable impression on your clients. Now, you have an outstanding bill to clear in 15 days. You were counting on a payment from a client, but since it is delayed, you will have to think of another way to make this payment. In such a case, a loan can help you repay your debts quickly.
- Managing a negative working capital: When working capital is insufficient, your practice may falter. A CA loan finances the unpredictable working capital needs of your business and keeps your firm running smoothly.
- Expanding client base: Working capital is especially useful if you plan to take on new clients or expand because this will increase your everyday cost of operations.
Use a chartered accountant’s flexi loan facility to meet these needs. It allows you to borrow when the need arises and charges interest only on the amount used. You can withdraw and repay as many times as you wish. You can pay only interest as EMIs and repay the principal at the end of the tenor. These features make a Flexi loan perfect for all your working capital needs.
2. Finance growth and expansion
The growth of every business, big or small, requires substantial finance. A chartered accountant loan helps you finance the expansion of your business by giving you funds of up to Rs. 45 lakh. For example, suppose you’re diversifying from dealing with matters of taxation to mergers and acquisitions, you will need finance to hire more employees, buy more computers and also purchase additional software. A loan will help you meet all these needs easily.
This loan also has a flexible tenor that you can choose based on the time frame of your expansion or projected monthly revenues. This allows you to pay EMIs conveniently.
3. Furnish and design a new branch office
Setting up a new office involves several expenses. You will have to spend on:
- Painting and interior decoration
- Furniture, fittings and carpentry
- Electrical work
- Miscellaneous accessories, such as carpets and curtains
Instead of dipping into your business’ finances or personal savings, you can use a CA loan to furnish your office. These savings can be invested elsewhere or reserved for contingencies.
4. Finance assets
Assets are an important investment for any practice. They boost your productivity and are a good way to invest your money. A loan for chartered accountants can help you buy new assets like commercial space, company vehicles or computers, all of which involve investment. If you’re moving to new office space, for example, you can buy furniture and top-of-the-line laptops, all at once, without letting the cost be a hindrance.
5. Repay debts on time
Debts can pile up if they are not settled on time. Defaulting on payments has repercussions such as the seizure of business assets and a lower credit score. A loan for chartered accountants allows you to repay your creditors on time. This maintains a positive image and a good business relationship with your creditors.
If you have already taken two or three loans in the past and have a business credit card balance that you are yet to repay, you’ll realise that debt is mounting and that you’re paying too much interest. In such cases, a CA loan will help you consolidate your debt and clear it quickly. You can avoid late fees and maintain a good relationship with your creditors.
6. Limit your long-term liabilities
The loan itself has a flexible term of repayment that doesn’t make it a liability for you or your practice.
7. Resolve unanticipated cash needs with a flexi loan
A flexi loan account for CAs can also meet unexpected cash needs. For example, if you take on a big six-month project, you may have to hire two additional resources urgently to complete it. You had not planned for this, but since you want to make the most of the growth opportunity, you decide to hire. In such a case, a Flexi loan allows you to borrow as much as you need from a fixed sanction, as many times as you require. So, you can use it to hire more employees without harming your finances.
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