It goes without saying that barring winning a lottery or getting an inheritance, you have to earn a good income to live comfortably. Now, there are two ways that most of us earn an income– either through a job or through running a business. If you do have your own business then you know how important money is when it comes to its operations.
You need funding to invest in workforce, materials, land, building and machines to run the business. And one of the popular means of funding is and always will be availing a business loan.
NBFCs like Tata Capital, offer business loans based on parameters that assess the creditworthiness of the business and its future prospects. Essentially, Tata Capital look for stability in future income so as to service the business loan. In assessing the suitability, they seek verification of information provided by your business through independent agencies such as credit bureaus.
Therefore, Tata Capital also recommends business loan eligibility conditions which you must satisfy to qualify for a business loan. These are all necessary checks and balances required to ensure both parties – lenders and borrowers – follow norms that are open and transparent.
Read on more to know why 2019 is the best time to avail a business loan.
Festivals: Whether you are a producer of goods or a service provider you would need to stock up well in advance so that you can be ready with stocks to ensure timely availability to meet increased demand just before the celebration of festivals by all ethnic communities. Thus, you will require a business loan to meet the working capital requirement for raw materials and the employment of additional labour.
Technology Upgrades: Technology is always a game changer. It can alter the economic scene very quickly. You will recall the tremendous impact technologies associated with the Internet, Smartphone, mobile telephony and Internet of Things has had on people. For instance, in mobile technology, 5G is the latest to make an entry. Therefore, it will be prudent for you to take a business loan to prepare yourself for 5G technology. You will require funds to invest in new equipment and training to prepare for the entry. In the same way, if you run a production unit you may need to change a production line or invoke new machinery to adopt new technology. In 2019, there are many new technologies in several fields that may make their entry and it is advisable for you to flag these technologies and prepare well in advance and a timely loan for business would come in very handy. If you are planning on a technology upgrade and need funds, you can apply for business loan online.
Policy initiatives: Since a new government will take over in the middle of the year it is possible that several policy changes may take place. The one which can affect you is the interest rate on business loans. In order to boost MSME sector, there could be policy initiatives which could lower the interest rate on borrowings. Thus, if you have put off taking a business loan because the interest rate was high you may want to reconsider if the interest rate is favourable to you. You could look at these changes in other areas such as impetus to research and development, tax holidays for developing non-industrialized zones or incentives for investment in backward areas. All these could be a trigger for availing business loans to grow your business.
Although there are many reasons for availing business loans, we would recommend that you track the developments in 2019 and quickly respond to the situation as it unfolds. In order to do this, you have to be on your toes to follow the events and be prepared. You can prepare by ensuring you have a good Company Credit Report for your business as well as a good credit score for you as an individual. You can keep all your documentation up to date so that your business loan eligibility is only a formality. If you prepare well, you can avail a loan for business on the best of terms from the lenders such as Tata Capital. To know how you can apply for a business loan, head to the website and get all the information on business loans.