Whenever you share the decision of going for a business loan, you may get all sorts of opinions. Some will encourage you saying it is the right way to go about when running a business, while many others may discourage you because they believe that a business loan is nothing but a load of financial and mental stress. But a small loan for business is a significant way to inject much-needed capital into the business. This is especially vital for first-time entrepreneurs, micro traders, women business owners, etc.
How do you know when is the right time to borrow money for your business? Everyone wants their business to grow, and it is well-known that cash is an essential factor for extending it. So, how does a business owner know when to take a loan? After all, a loan is a significant financial responsibility.
Here are a few reasons why a trader should opt for a business loan. These reasons will tell you that applying for a loan at the right time is a perfect push for a growing business, not just a liability.
- You need a larger space.
Are you facing a tough time managing the office space? What seemed to be perfect and enough when starting the business now feels cramped and stuffed with orders and employees? Well, you need a bigger workspace without a doubt. A growing number of employees, larger orders, etc. signify that your business is booming and it is indeed the precise time to make a shift. Going for a business loan for this would be a wise choice.
- You need new machinery.
This one is a no brainer. Upgrading the existing machinery or adding new machinery is essential for running a business smoothly. If you are short on funds for this critical task, then yes, you should go for a business loan.
- You need new inventory.
Business inventory is a major expense. Investing in high-quality inventory is imperative if you have a business that experiences heavy sales during festivals and tourist-seasons. It is also a necessary investment to experience profits. So, taking a business loan for new inventory is always wise. Make sure you do this well ahead of the peak-demand time.
- Clear unpaid bills
Unpaid bills are a big obstacle to business growth. It creates a negative image of the business in the community, and traders lose trust in you. So if the amount of your uncleared bills is mounting up, you should apply for a business loan and clear them off immediately.
- You need more employees.
Small businesses owners usually take care of many responsibilities and perform multiple roles and tasks. However, as the volume of business increases, this becomes difficult. At this point, hiring new employees is a necessary requirement to keep the business in good health. Hence, taking a business loan to initiate the recruitment process is a good idea.
Small businesses do not require heavy amounts of capital very often. Such companies also may not be having enough creditors. Thus they do not want to approach a bank because of the tedious paper works, time-consuming formalities and strict rules for every business category. However, they may require immediate funds at times, even if the amount is small. In such cases, a financial technology company like ftcash is perfect for an instant business loan.
ftcash is a reliable business loan provider in Mumbai that offers financial solutions, especially for the micro traders. With ftcash, you can get secured and unsecured small business loans up to INR 50 lakhs with minimum documentation. They have reasonable monthly interest rates of 1.5%-2% per month for unsecured loans and 1.12%-1.41% per month for secured loans.
They also have the Equated Daily Installment facility option, which allows you to repay the loan in small sums every day. You can also track every loan-related information digitally with the ftcash app. So, if you are looking for a trusted name for a business loan in Mumbai, ftcash is what you need.
