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Tata Capital > Blog > Equipment Finance > Why Are Digital Equipment Loans Becoming Popular?

Equipment Finance

Why Are Digital Equipment Loans Becoming Popular?

Why Are Digital Equipment Loans Becoming Popular?

Upgraded machinery and equipment are the key to seamless business operations and higher revenues. Naturally, investing and upgrading new equipment call for a substantial investment – which is capable of draining your working capital. Furthermore, with technological advancement, such investment is needed more frequently for the businesses to stay relevant.

However, in this volatile market scenario, businesses cannot afford to make sizable capital expenditures to access the latest equipment. That is why most companies turn to equipment loans to invest in equipment without impacting their business cash flow.

Today, many lending institutions offer affordable loans through a completely digital process called digital equipment loans for quick availability of funds. If you're considering a digital equipment loan for your business, here's what you need to know.

Why are digital equipment loans popular?

Investment in technology requires sizable funding, which can easily strain your business finances. Here, equipment loans are a lucrative finance option to acquire the funds hassle-free. However, the traditional loan application and approval process can be time-consuming, hurting the business' finances.

As a result, many businesses today prefer digital loans – which lets them apply for competitive equipment loans electronically through a completely paperless process. The loan is approved, managed, and disbursed through digital channels, where the lender uses data to make credit decisions. With the business amplifying investments in technology, digital loans have also taken centre stage.

Benefits of digital equipment loan

1. Instant access to funds

When it comes to equipment financing, you cannot afford any delays that can adversely affect your business' productivity. With digital equipment loans, you can apply on the digital portal of the lender and get the loan amount approved and disbursed within a few days. This ensures that you have quick access to liquidity for your machinery purchase.

2. Minimal documentation

You can get affordable equipment loans digitally without needing hefty paperwork. Most banks require you to furnish limited documents at the onboarding stage. This way, the loan approval is faster, and you can acquire the necessary funds hassle-free.

3. Pre-approved loans

As a business owner, you know the importance of acquiring the right capital at the right time to keep the business afloat. With digital equipment loans, you can avail pre-approved machinery loan offers online within a few hours. The bank will disburse the funds quickly, reducing the loan processing time.

4. Better cash flow management

In the case of digital equipment financing, businesses can invest in the latest machinery and equipment without making significant capital investments upfront. The cost of the equipment gets divided in the form of equated monthly instalments over the lifetime of the machinery, thus reducing the financial strain on your business's cash flow and working capital.

What is the need for digital equipment loans?

The rise of the FinTech industry has made digital lending a prudent option for lenders and borrowers alike. Here's why the need for digital equipment loans is rising-

  • High loan costs

In the case of a traditional loan, the application process comes with a processing fee for the new loans. You have to pay a certain percentage of the loan amount as a processing fee for paperwork and verification checks involved in loan approval.

However, with digital equipment loans, the paperless application process reduces the processing fee you have to pay. You can log in to the digital platform to quickly apply for a loan without incurring many expenses.

  • Lengthy application process

Most equipment loans are characterised by lengthy application and approval processes. The verification process can take time, which makes it difficult for you to acquire the business equipment instantly. That is why digital equipment loans ensure you get the loan amount you need in the least time possible.

Moreover, with pre-approved loan offers, you can invest in the latest machinery without any delay.

How to apply for a digital equipment loan?

When looking to upgrade your business equipment without affecting the capital expenditure, apply for a digital equipment loan within a few minutes.

  • Visit the lender's website
  • Log in to the digital loan platform
  • Fill in the application form with your details
  • Check your loan eligibility
  • Get the pre-approved machinery loan offers within minutes

Once you're done with the application process, you can get an all-digital equipment loan hassle-free.

To sum up

When you obtain digital equipment finance, you can invest in state-of-the-art equipment and reserve surplus funds from your business to tackle unforeseen circumstances. What's more, you can use these funds to meet your business needs, repay high-interest debts, supplement your working capital, or invest in R&D.

Tata Capital brings you comprehensive digital equipment loans on a digital platform – apply for a machinery loan up to Rs. 1 crore on our digital platform! Enjoy competitive interest rates, flexible tenure, and pre-approved loan offers. Get in touch with our experts to know more.

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