Building a small business is both a dream and a hassle. It takes a lot of sweat and hours to build companies over long periods. Having a plan that includes anticipating needs and preparing for adversities helps ensure that the lows of financial stress never eclipse the highs of achieving the tiniest goals. Tata Capital offers a range of financing solutions to help MSMEs fulfil the ambitious Make in India initiative, from equipment finance to term loans.
The Indian government’s commitment to augment the Make in India program reflects in Budget 2022. Domestic manufacturing continues to be a priority. MSMEs have the opportunity to tap into new opportunities and recover the many financial consequences incurred during the COVID19 pandemic. However, these opportunities cannot translate to reality without proper financial support.
Here are some financing solutions Tata Capital offers to support the Make in India initiative:
Equipment Finance & Leasing
Buying or leasing equipment are safe options when a business needs to expand but may not have the capital for the required investment. A tough decision in such a time must never pivot in the direction of stagnation.
Getting the equipment on loan or lease with the guidance of a trusted advisor like Tata Capital can help businesses bet on growth without draining their capital reserves. New machinery and the latest technology bring along possibilities that can boost productivity and efficiency, in sync with the intent of Make in India.
The uncertainties brought in by the pandemic have made it even more crucial for businesses to look at equipment financing instead of buying assets upfront. Leasing is another attractive option to procure assets that get obsolete quickly due to rapid technological advancements without large capital investments.
Additional Read: What Are the New Business Loan Schemes for SMEs in 2021?
Supply Chain Financing
Visionaries build empires with a resilient supply chain. Its health directly impacts the business in time, effort and most importantly, money. Supply Chain Financing helps keep the entire machinery well-oiled and, in turn, boost the Make in India initiative.
From procuring materials to aid in payments and credit, Supply Chain Financing helps ease and accelerate money flow in the business cycle. With a continuous flow of funds from Tata Capital, MSMEs can ensure uninterrupted operations, innovate and support the Make in India cause.
Small businesses can always turn to Term Loans for immediate and long-term goals. They can use term loans to add assets, enhance production, and expand their scope of operations. Terms Loans can help MSMEs upgrade technological infrastructure and invest in newer processes. Tata Capital designs its credit solutions such that the loan application process is easy for businesses to go through, allowing them the room to innovate, grow and Make in India effortlessly.
When faced with an immediate need for cash, small businesses can bank on Working Capital loans. These help them navigate the tough times without letting cash be a hurdle. The infusion of fresh capital helps the organisation stabilise, grow, and remain operational against all odds. It could be Working Capital Demand Loan, Supply Chain Financing, or Purchase Order Funding. The most important part is identifying the funding gap and fulfilling it as per the needs of the participating business.
The creditworthiness of a business is a factor in getting a loan. It helps institutions assess and define their borrowing and returning capacity. This aspect requires a lot of paperwork too. GST Loans are simpler in comparison. Here, GST Returns determine the creditworthiness of the business. There isn’t even a need for collateral.
GST Loans are convenient and easy, especially for small businesses interested in making in India but may not have the assets required to apply for collateral-backed loans.
Additional Read: Top Government Schemes for Startups and MSMEs in India
Commercial Vehicle Finance
Mobility is what can truly drive the Make in India initiative forward. It is one of the most important logistical factors in the mix. With Commercial Vehicle Finance options, MSMEs can add cutting edge technology to expand the fleet of vehicles available to them. Irrespective of whether the requirement is of a new or a pre-owned car, Tata Capital has solutions for all businesses; tailored to their specific needs.
Access to the correct information is a precious resource for a small business. It is here that the organisation makes informed decisions. At Tata Capital, we aim to be a partner to our clients in their journey of growth. We tailor our products as per the specific needs of the businesses.
With Budget 2022 nudging the development of Make in India, we at Tata Capital are all set to support small businesses with our diverse financing solutions. If you are looking to get guidance on the right financing solution for your business, get in touch with our experts today.