FindItMore | There is a reason why Surat is considered the commercial capital of the state of Gujarat and although it is mainly known for its textile industries, there are a number of other SMEs and MSMEs that are operating here at the moment. Almost all of them have a good profit and this is also encouraging new entrepreneurs to set up their own business. However, accumulating capital to finance a business is always the first task and thanks to business loans in Surat from many NBFCs like Bajaj Finserv, this can be easily accomplished. Here are ways in which the loan money can be utilized to grow the business further.
- Renting New Premises: As soon as the business starts growing, one needs larger premises to accommodate the growing operations and a loan could be applied for to pay for the better and larger premises. One might also like premises in a new location which would be more conducive to their business. One could also want to buy or rent new warehouses to store their goods in a better manner.
- Buying new Equipment: If a business has to stay ahead of its rivals, then they need to upgrade themselves and buying the latest equipment can help with that a lot because it is sure to reduce production time and also cut down various other costs in the long run. One could easily apply for a business machinery loan to upgrade the equipment or even to digitalize it. In the same way, small business funding can be used to by better quality raw materials which will definitely yield better products.
- Building Inventory: For a business to stay afloat, they need to have a good inventory so that they are always ready to supply as soon as the order is placed. However, sometimes due to delay in payments or simply because it is a slow season, the cash flow might be slow and one might not have adequate money to carry on with the production. This is where a small business loan could come in really handy because the money could be easily utilized to maintain production even at a slow time.
- Hiring Staff: If a business wants to produce better quality goods, then they would need skilled staff who knows their jobs well. It is a far more prudent idea to pay a little more and hire skilled staff rather than producing substandard commodities to save costs. One could apply for a business loan to get the money to pay the staff and the loan can be paid back when the products are sold for a profit and a good clientele has been established.
- Saving Taxes: A business loan can also help considerably to save taxes. It has been ordained under the IT Act that the portion of profit that goes into loan repayment are exempted from any taxes and this really allows the businessmen to make a good profit, which in turn can be utilized to carry on better business operation for the company in future.
Investing in Marketing: To make a business truly successful, it is important to get the word out there regarding the kind of work one is doing and this can be done only by good marketing. Invest in making a website for your business or to pay for banners and posters to be hung up so that more and more people come to know about what you are doing. Investment in marketing will greatly reap in better profits and one could easily apply for a business loan at low business loan interest rates to take care of the marketing expenses.