Your business may face a financial crisis or cash crunch anytime. As a business owner, you should be prepared for such situations.
In such a case, having a healthy working capital often acts as a cash cushion; however, if your business doesn’t have an adequate flow of cash, you can always opt for a business loan. With a high amount of funds offered by this type of business finance, organisations facing a financial crisis can ensure smooth operations.
Here’s how a business loan can help you in times of financial crises and help you grow your organisation without any hindrance.
Update your equipment
One of the first things you should do to stimulate business growth is update your existing equipment or acquire new equipment. This is often the most effective way to increase productivity, thereby increasing profitability. However, it can get very expensive. If your equipment is dependent on technology that is ever-evolving, here’s a pro tip. Try leasing equipment instead of purchasing it to increase flexibility. You can fund all your equipment purchases affordably and make use of economies of scale with loan for business.
Invest in your employees
This is one key aspect most business owners fail to focus on and while it is possible to survive that way, one can never thrive when ignoring their most important asset – employees. Human capital is by far the most effective in making or breaking a business.
You can use funds from your business loan to invest in training and mentoring your employees while also setting up incentive programs and employee perks. You will see the returns in terms of enhanced performance, greater loyalty, morale and goodwill.
Having a skilled set of employees who are high on motivation, morale and performance will add significant value to your business helping it grow in the long-term.
Negotiate better terms
The power of negotiation lies in the hands of those that have more leverage and when you take a business loan, it happens to be you. You can negotiate better terms with your suppliers and vendors because the loan facilitates you to buy more from them and even pay in cash on the spot. You can negotiate for cash discounts, free shipping, access to inventory and more.
You can also use this as an opportunity to boost your inventory and try different products to see what works with the new and changing trends.
Add a new product/service
Adding a new product or service to your business is a great way to boost its growth because not only does it give you the opportunity to meet new demands but it also makes your business more relevant to different sets of target markets.
However, adding a new product or service is a significant investment. It may require new equipment or an increase in staff. Short-term business loans can help you make this needed investment to help your business get out of the rut.
Up your marketing game
If you have updated equipment, a wide range of products and services and a great set of skilled and motivated employees and you’re still not growing, it could possibly be because you haven’t focused much on effectively marketing your business.
You may be providing the best product or service out there, but it still won’t matter unless people know about it. Depending upon your industry and target market, find a balance between traditional marketing tools like sales promotion and the modern marketing platform of social media.
NBFCs offers easy financing with business loans of up to Rs 30 lakh. With only two documents required for application and the funds being disbursed within 24 hours, the small business loans are easily and quickly obtainable in times of a crisis.
The business lending rate is attractive and the Flexi Loan feature offered can help save up to 45% of EMIs. Additionally, NBFCs also offers pre-approved business loans making the whole process even quicker and easier. Simply fill out a few basic details and check your pre-approved offer, to get an instant approval on your business loan.