If your business is 3 or more years old, then it’s time you take it to the ‘medium’ grading. You have stood the test of time and made your company versatile. You have a wide market reach and a stable consumer base with a sustainable retention rate.
Now, it’s time you should take the best steps forward and expand your business. If a shortage of capital is hindering you from achieving the growth, then, opt for SME finance.
These loans are specially made for small businesses and can provide that much-needed financial support. Lenders in India also customise these loans as per requirements of borrowers making them more lucrative.
However, you may wonder if an SME loan can help in your business expansion from the larger perspective. To help you figure this out, here are a few pointers to give you a better idea on such loans:
You can take these loans without any hassle
One of the most profitable aspects of these loans is their minimal documentation requirement. You only have to provide KYC (Aadhaar, PAN, Voter ID, Passport, Driving License, etc. ), address proof (latest utility bill or any KYC with permanent address), bank account statements, and proof of business (any registration certificate).
Also, you have to fulfil only a few SME loan eligibility criterions. For example, you have to be between 25 and 55 years old while your business should be at least 3 years old. Lastly, you need to file income tax returns and audit business turnovers by a CA for at least the previous year.
Financial institutions provide ample funds with these loans
NBFCs like Bajaj Finserv provide up to Rs. 30 Lakh as They also as online SME loan. have pre-approved offers that make the process of financing simplistic and less time-consuming.
Moreover, you can use these loans in any way for funding your business expansion.
Purchase or lease new office property
If you are looking to expand your operations to a Tier 1 Indian city, you will need ample funds. For leasing or purchasing an office property there, you can take the help of a small business loan.
Upgrade or purchase new machinery
If your business is part of the manufacturing industry, then upgrading or purchasing new machinery will increase your production capacity. Your company can grow by penetrating new markets. Thus, you can take the help of such SME finance for your manufacturing business.
Expand your inventory
Expanding your inventory can significantly increase your manufacturing capacity. A small business loan can help you add more stock to your inventory in case you are low on finance.
Add a new product to your list
Adding a new product to your manufacturing line can also make your business grow. However, you may need to invest in research and development. This investment for establishing an R&D unit can come from your SME loan.
Acquire another company
Acquiring another company can be one of the quick ways of business expansion. Acquisition helps your business grow and even tap into new sectors that are unique to yours.
You get flexible tenures to repay the loan
SME finance can be paid off within 12 to 60 months. Thus, you can repay the loan in easier sums.
You can use an online EMI calculator to gauge your EMIs based on your loan tenure, principal amount, and rate of interest.
These loans are approved within a day
Another attractive feature of these loans is that lenders can approve them within 24 hours. You can find the amount in your bank account if you have provided all the necessary documents and followed up on the pre-requisites.
These are just some of the reasons why online SME loan is the right option to fund your business expansion. Make sure you maintain a credit score of 750 or above to get your hands on a loan soon.