Why You Should Use a Business Loan for a Business Expansion Project?
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Why You Should Use a Business Loan for a Business Expansion Project?

  • Highlights

  • Reasons for taking a business loan as funding for expansion

  • Provision for fast funds in case of urgencies

  • The ease of repaying a business loan

  • Advantages of a business loan



Expanding your business takes sufficient funds that may not be available to you from your revenue alone. Rather than allocating working capital finances for this purpose, which may adversely affect the daily operations of your firm, take a business loan for expansion. Here’s why.

It offers a substantial loan amount to finance all your expansion expenses:

Business loans give you a principal of up to Rs.30 lakh. And, you have complete discretion over the use of this amount. You can borrow any amount within this limit to finance your expansion expenses. For example, if you’re the owner of a restaurant, you may want to add an al fresco dining area.Even if you’re adding only five more tables to your premises, you will have to budget for furniture, a sous chef, line cooks, outdoor fans and landscaping and interior designing.

A business loan helps you meet these requirements without feeling the heat.

It offers a Flexi loan facility to meet unpredictable growth needs:

Your business could also have various unpredicted costs that crop up from time to time, especially when your business is in its growth phase. For example, you purchase new premises for your restaurant. But, once you get the property inspected, you find that the existing structure isn’t sound and will have to be rebuilt. Moreover, the wiring has is falling apart and will have to be redone. In such a scenario, you can easily use the Flexi business loan facility to pay for expenses that could otherwise throw your budget off track. It lets you borrow a sum of money from a loan limit of up to Rs.30 lakh. More importantly, you can withdraw as many times as you wish to. The borrowed sum is payable after the lapse of the tenor. Apart from that, you only have to pay the interest component on the amount utilised rather than the whole sum given to you. If you wish to switch back to a term loan, you can do so too.

It does not require any collateral to be put up as security:

This business loan is absolutely free from collateral. So, you do not have to worry about putting your valuable business assets at stake. All you have to do is complete the application procedure and submit documents after which the approval takes place instantly.

Additional Read: Industries That Can Benefit From Equipment Financing

How To Get Small Business Finance From Bajaj Finserv

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

It offers funds fast for urgent needs:

This loan features a quick application procedure that only consists of four steps. All you have to do is fill and submit the form with your documents. Once verification of the documents is complete, your loan is disbursed. This approval process takes only a few minutes and saves you the hassle of traveling long distances or filling out lengthy paperwork. Furthermore, you will receive the amount directly in your bank account, so you don’t have to deposit a cheque. This comes in handy when your business is faced with urgent needs that demand quick financing.

For example, a customer applauds the high quality of food that you serve at your restaurant. She is hosting a small event at home and would like to cater a lunch. While you haven’t done this before, you find that this is an opportunity you don’t want to let go of. That said, you will need a service counter, portable burners, trays, warmers and an insulated case for desserts. You will also need to hire servers to serve appetizers. Since application and disbursal take just 24-48 hours, you can use this loan to cater to your urgent needs.

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