Equipment and machinery are the main organs of any business. To sustain your business, you need to keep your machinery upgraded, so you can deliver products and services of global standards.
Machinery is not limited to production units in factories. They might also include:
- Hardware related to networking solutions, and connectivity
- Hardware for GPS tracking
- Hardware for security solutions etc.
- IoT solutions
- Vehicles for delivery, and others
Machinery repair, upgrades, lease, and purchase accounts for a large chunk of business costs. These can be easily managed with an equipment loan.
Let’s Explore How An Equipment Loan Can Benefit Your Business
- Purchase New Equipment
An ever-growing business will require to invest in new machinery and equipment. These could be a crane, oven, delivery vans, computers, or lightning solutions, to name a few. Machinery comprises a large chunk of business costs.
Instead of trapping available cash to finance the equipment costs, Equipment Financing can help you buy the new and upgraded equipment. This will preserve your cash flow, and help you to maintain a healthy quick ratio.
1.Lease New Equipment
Leasing of business equipment is an option, if businesses do not want to invest in buying equipment. Leasing equipment keeps you free from the concerns of repairs and upgradation. If you wish to process an immediate project, then leasing machinery is a good option. You can avail a machinery loan for leasing of equipment.
2.Repair Of Equipment
Machinery depreciates, while continuous advancement of technological innovation makes upgrades inevitable. To prevent projects from getting stalled, the maintenance, and repair of machinery has to be a dedicated process. These costs can also be leveraged through a machinery loan.
Benefits Of Equipment Loans
You can easily avail machinery loans from non-banking financial companies (NBFCs) to meet your business equipment needs. Bajaj Finserv grants unsecured machinery loan for an amount up to Rs. 30 lakh. Depending on your requirement, you can choose a tenor ranging from 12-96 months.
NBFCs such as Bajaj Finserv provide a flexible credit line to the borrowers. In this option, you can withdraw any amount of money as loan amount, without having to utilize the whole credit line. This means you have to pay interest only on the amount withdrawn, and not the whole credit line. You can repay when you have enough funds, without being levied extra charges.
The equated monthly instalments (EMIs) constitute only the interest component of the loan repayment amount. This further reduces the EMIs. You can pay back the principal amount at the end of the tenor. By that time, your business would have started generating profits, and you can comfortably pay back the whole amount.
Equipment Loans are collateral free. This reduces the amount of paperwork, and you can get fast approvals of your loan application. You can withdraw the loan amount as many times as you want, till the whole credit line is utilised.
With the government’s push for ‘Made In India’, several businessmen are building factories for components that were being imported from different parts of the world. Join the cause of ‘Made In India’ with the help of equipment loans. You can check interest rates on machinery loan, and apply for a Bajaj Finserv Equipment Loan online.