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How to Use Your Business Loan in Mumbai for Financial Growth

  • Highlights

  • Use your business loan to fund operational costs

  • Use your business loan to buy or lease specialised equipment

  • Use your business loan to hire skilled workforce

  • Use your business loan to get your business online

Mumbai generates over 6% of the country’s total GDP. So, if your business is based in India’s financial and commercial capital, there are lot of opportunities for growth in sectors like manufacturing, retail, construction, technology, food and grocery delivery. You can get a business loan that allows you to raise funds for a wide range of purposes to boost your business.

Take a look at how you can make the best use of a business loan in Mumbai for your business’ growth.

1. To fund operational costs

Your business is sure to require funds for daily operations, be it for hiring staff, renting a retail or production space, paying for electricity and buying needed raw materials. When your business is looking to grow, these operational costs may increase. For example, if you have a laundry service, you may want to open more branches in Mumbai. Apart from shop space, delivery vans, and more personnel, you will also have to spend on lighting, air conditioning and interiors. So, when you expand your business, you can finance these operational costs with an affordable business loan in Mumbai.

2. To buy or lease specialised equipment

A laundry needs specialised equipment. These include steam pressers, commercial washing machines, dry cleaning products, ironing boards, starch sprays and waterproofing sprays. You will need finance to keep your laundry outlets well stocked, as well as to lease or buy equipment. In such cases when machinery and equipment can directly or indirectly help your business become more productive, you can use a specialised business loan for machinery. If you are planning to buy machinery in instalments or based on increase in customers, you can opt for a Flexi Business Loan. This facility gives you finances via a loan limit to pay for unpredictable or uncertain cash needs. You can borrow and repay funds from the loan limit as many times as you wish to. Most importantly, interest is only charged on the amount that you use, and you can pay interest through EMIs. You have the option to repay the principal at the end of the tenor.

3. To hire skilled workforce and fund specialised needs

Skilled workforce increases your business’ productivity and profits. Your laundry, for example, requires workers to iron, steam press and starch clothes. You will also need delivery personnel and drivers. Since the speed at which you deliver products is key to running a successful laundry business, you will to need to hire more resources to reduce turnaround time. Whether you are buying or leasing delivery vans or hiring the needed staff, a business loan can help.

Additional Read : How Much Working Capital Does Your Business Need?

Business Loan in Mumbai

Dos and Don’ts when applying for a Business Loan

Business loans from Bajaj Finserv are designed specially to help growing businesses meet their financial requirements. Easy to apply for and hassle-free to avail, these loans come with several unique benefits that make them the ideal mode of business finance for small and medium sized enterprises. However, when applying for a business loan, there are certain dos and don’ts that you should keep in mind, in order to ensure that your application is processed smoothly. Here, we tell you what they are.

Dos and Don’ts when applying for a Business Loan

4. To get your business online

Most businesses have a digital presence and you may want to offer your services online too. Using the same example of a laundry chain, you may want to set up a website for taking pick-up orders online and even advertise digitally. For this purpose, you can hire experienced web designers, SEO specialists, and social media executives. You can even outsource the job to a digital marketing company. This requires finance on a large scale that may be impossible to pay for using sales revenue alone. In such a situation, a business loan is ideal.

Additional Read : How to Prepare Your Organisation for a Business Loan

5. To diversify or introduce a new product

Diversifying and introducing a new product or service gives your business the chance to expand sales revenue. But, to do this, you must spend on new equipment, marketing costs, research and development and more. For example, apart from your laundry services, you may want to start shoe and bag cleaning services. You will have to research the market to see if consumers are interested in these services. If the results are positive, you can move on to buying the necessary machines and hiring specialists. A business loan can help you do all this.
Since a business loan gives you the freedom to use funds as per your needs, you can use it to propel your growth.

Business Loan

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