Clare Louise
In every business, careful cash management is crucial to its success or the business can suffer due to lack of revenue. This is particularly true for MSMEs and SMEs in most sectors.
At all times, your business would need sufficient working capital to run it and fund daily operations and pay suppliers on time.
This is where machine loans come into the picture. Most business owners are surprised to know about the simplicity and easy availability of machine loans. Once they understand how machine loans work, they enjoy their convenience and various other benefits.
A machinery loan is a business loan that helps entrepreneurs, business owners, and other business entities to upgrade or buy new equipment for their business purposes. This helps increase productivity, boost sales, and result in higher profits. Hence one can confidently opt for machinery loans. You also have the option of taking machine loan without security.
You can also arm yourself with the potential to buy used machinery to bolster the production capacity without stretching your budget.
Here are some of the benefits of taking machinery loans:
Application for Machinery Loans
You can directly approach a Bank or an NBFC to apply for a loan. Nowadays, even online submission of the machinery loans documents helps in the quick processing of the loan application. This is a totally easy and hassle-free process.
Machine Loan Without Security
This means a loan where you don’t have to keep your machines as collateral. Do remember, some Banks require collateral for a machinery loan. They are usually in the form of accounts receivable, inventory, or your own assets. But most institutions including NBFCs don’t require collateral. They do look into the company’s cash flow, management, and the company’s growth potential.
Flexibility in Repayment Period
When it comes to repaying the machine loans, repayment plans are available in different forms tailor-made to your needs. Depending on the repayment time frame, you’ll have to pay back what you had borrowed, plus any interest that has accrued. A shorter time frame between payments can mean a smaller amount of interest owed.
Timely repayment can also improve business cash flow and reduce the total amount of interest that accrues.
With fixed repayment terms, business owners know what their exact monthly payment will be. The repayment can be calculated to accommodate various other business expenses to ensure the repayments of machinery loan without breaking into a sweat.
Interest Rates
The interest rates are offered based on your business’s repayment ability. Banks and NBFCs also set their base interest rates based on the prevailing market rate or as set by the RBI.
Readjustment of Loans
Rest easy knowing that flexible repayment options exist, suited to the future needs of a small business owner. So, if on a later date, you need to make early repayment of the loan or you want to repay a greater percentage of the loan, you can do that effortlessly and save on the interest rate. That flexibility can help eliminate the risk of incurring extra charges and gets you that much closer to paying off the complete loan.
Takeover Of High-Cost Loans
Avail of the benefit of low-interest rates, by taking over your high-cost loan. This will help you lower your loan repayments. You can move your existing machinery loans outstanding balances to the Bank or NBFC to pay lower monthly instalments.
What’s more, machine loan repayment is automatic and the recurring payments are deducted directly from your business account. Since the deductions are automatic, you won’t have to worry about missing a payment.
So, don’t hesitate, make machine loan without security your priority. What’s more, the machine loan without security eligibility criteria is simple, and hence, it allows for more and more business individuals to avail of the loan amount.
All leading Banks like SBI, HDFC, ICICI, Union Bank among others, and NBFCs like Electronica Finance Limited (EFL), Magma Fincorp Limited, L&T Finance Holdings Limited, Indostar Capital Finance Limited, Reliance Capital Limited offer machine loans at the best interest rates. Few documents are needed for taking machinery loans for new or used machines. They include Identity proof, address proof, financial documents like Income tax returns filed, business ownership proof, and more.
Go ahead, don’t keep your business expansion plans on hold. Choose a machine loan and speed up your business growth.
