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Tata Capital > Blog > Loan for Business > What is Machinery Loan and Benefits of Availing a Machinery Loan

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What is Machinery Loan and Benefits of Availing a Machinery Loan

What is Machinery Loan and Benefits of Availing a Machinery Loan

Be it a services business or a manufacturing facility, advanced equipment and machinery is key to meeting production and servicing customer demand smoothly. Every now and then, business owners may need to upgrade to the latest machinery, which is a costly affair for small units. If you’re facing a liquidity crunch, a machinery loan can come to your rescue.

What is a Machinery Loan?

Machinery loan finance is availed for the purchase of new equipment or upgrading existing ones. These loans help both big and small business owners manage daily production as well as expand their operations. Here is how you can benefit from a business loan for machinery purchase.

Collateral-free Funding

Machinery loans for start-ups and new businesses are typically unsecured loans and do not require the borrower to pledge collateral. This is especially beneficial to small businesses availing machinery loans for new business since they often don’t possess physical assets to pledge as security. Thus, machinery finance offers a way to ramp up production quickly and at scale.

Easy Funding

When you apply for a business loan for machinery purchase, you require only some basic documents like financial statements, KYC documents, and bank statements. The entire application process can be completed online and in a few minutes. Additionally, the disbursal is quick which means business can keep going on as usual without taking a hit.

Flexible Repayment

Most machinery loans come with flexible repayment options. Business owners can choose a repayment tenure that fits their budget and the company’s cash flow, a distinct advantage when you are undertaking a machinery loan for start-up with uncertain cash flows.

Improved Productivity

With machinery loan finance, businesses can get hold of the latest and the most efficient equipment. Naturally, this means production and other processes take less time and the business enjoys output in a shorter span. In the end, productivity improves.

Availability of Big Amounts

When you apply for a loan for machinery purchase, you can easily get access to high loan amounts. Since machines are big-ticket purchases, it only makes sense that lenders offer a high loan amount. For instance, at Tata Capital you can get machinery loan finance as high as Rs. 75 lakhs.

These are only some of the benefits of availing a machinery loan. The list is indeed long. In even more good news, applying for a business loan for machinery purchase is a simple process with a high success rate. You can compare machinery loan options across various lenders and then choose the one that works the best for your business.

At Tata Capital, we offer unsecured machinery loans for start-up, new businesses, and established corporations. Having been in the industry for several years, we intimately understand the machinery needs of businesses across the spectrum. We have thus designed our machinery finance offerings keeping flexibility and complete financial support at heart. To give your business the boost it needs to spread its wings, get in touch with us and understand more about our business loan options.

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