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Tata Capital > Blog > Loan for Business > Tips to Raise Business Funds for Your Long-Term Business Goals

Loan for Business

Tips to Raise Business Funds for Your Long-Term Business Goals

Tips to Raise Business Funds for Your Long-Term Business Goals

There's a famous adage in business that goes, “growth consumes resources at a frightening rate.” And rightly so! As you keep working towards your long-term business goals, investing in your business for subsequent growth is equally significant.

After all, long-term goals determine the direction in which your company is headed, and accomplishing short-term objectives will get you closer to them. To that end, timely funding will play a crucial role.

Wondering how to raise funds to nail your long-term business objectives? Read on.

1. Term loans

Term loan or business loan can be obtained by a business to meet its need for lump-sum funding. You can use term loans for capital infusion, upgrade technological infrastructure, invest in Research and Development (R&D), set up a new plant, etc. Term loans are primarily of three types –

  • Short-term loans - These loans can cater to your short-term business needs, such as working capital requirements or operating costs. They are usually disbursed in small amounts over a short tenure.
  • Intermediate-term loans - These can be used to make machinery upgrades, boost working capital, etc., and the maximum tenure can stretch up to 84 months.
  • Long-term loans - Long-term loans can provide your business with a large lump sum of funding to take care of large capital expenditures. These include working capital needs, acquiring new assets, improving business infrastructure, etc. They have a maximum tenure of 5 years, which can be extended in some cases as per business requirements. However, these are secured loans and require you to pledge collateral.

Moreover, term loans are available at fixed and floating rates of interest. It is up to you to decide which type of interest rate you would like to opt for. But in any case, make sure to use a business loan EMI calculatorto understand your liabilities beforehand. 

Additional Read: Is a Long-Term Business Loan Option Right for You?

2. Venture capitalists

Venture capitalists are private investors that provide large capital to businesses for an equity stake. VCs also act as mentors for your business and help evaluate it from a scalability and sustainability point of view. They usually don’t invest in startups and go for organizations that are already looking to commercialize their idea.

Moreover, they also buy a stake in the business, nurture its growth and look to cash out for a high return on investment.

3. Equipment loans

Today, keeping your equipment up-to-date and in line with the latest technological innovations has become essential for your company's long-term growth. You can avail of equipment loans to finance the purchase of any business equipment and back in easy EMIs at a competitive business loan interest rates. This can be any tangible asset of the company other than real estate.

Additional Read: Long Term Business Loan – Pros and Cons

Bottom line

If you are looking to raise funds for your long-term business goals, look no further. At Tata Capital, we offer collateral-free loans at interest ratesstarting from just 19%! With our broad range of loan offerings and simple documentation, now fulfil your business capital requirements with ease.

Visit our website to check our business loan eligibility criterianow!

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