How to Grow a Business with Business Loan?

Running a successful business, whether it’s big or small, requires significant business growth strategies. Managing people, acquiring equipment and materials, following social guidelines, and understanding legal formalities – are just a few of the necessary tasks for a successful business growth plan.

Another crucial aspect is financial investment. One thing that’s true for most growing business in India is that setting up and operating a business both demand funds. Having a steady and reliable financing option can make achieving business goals much easier. That’s where Business Loans come in. But how to grow your business with Business Loan, and why exactly is a Business Loan a better option?

Also Read: Everything You Need to Know About Business Loans

Explore Five Benefits of a Business Loan:

Expansion of business

Small businesses have big potential for business growth, and Business Loans can help them reach great heights. The business expansion includes leasing larger spaces, acquiring new technology, introducing new verticals, hiring additional staff, and more. Each of these endeavours requires careful planning and a reliable source of funding. Business Loans offer a dependable financing option that allows small business owners to focus on operational details without worrying about funds.

💡 Pro-tip: With an online Business Loan EMI calculator, you can estimate your monthly EMIs and plan finances efficiently.

Tax Benefits

Whether you already own a business or plan to start one, an income tax business calculator will become your best friend. Businesses usually have the customary responsibility of annual taxation. In this context, Business Loans can be a blessing in disguise. While business owners might be concerned about taxes and loan repayments straining their financial system, the Income Tax Act of India allows for the deduction of the interest paid on Business Loans from the company’s profits. Depending on your business’s profit calculations, the Business Loan interest may balance out against the taxes payable, providing a tax benefit.

Also Read: Income Tax Saving Tips Small Business Owners

Working Capital

Business growth strategies for establishing or running a business involves operational costs, such as planning, organizing, production, procurement, manufacturing, distribution, marketing, and more. Availing a Business Loan alleviates the worry of daily working capital requirements. Enterprises can then focus on functionality instead of worrying about liquidity crunches or cash flow issues.

Upgrade & Advancements

Both the service and product industries incur set-up, wear-and-tear, and maintenance costs, and expenses related to advancements. Whether it’s purchasing new machinery for manufacturing, acquiring new vehicles for delivery, or upgrading services, Business Loans offer flexibility in usage that can be utilized for upgrades and advancements to improve the business’s overall performance and profitability

Zero Profit Sharing

While taking a Business Loan from a trusted lender is one financing option, seeking investors is another route to consider. Many investors gladly invest in budding businesses; however, they typically participate with the expectation of sharing in the business profits. Contrary to this, opting for a Business Loan grants complete freedom in business operations and decisions. It enables the utilization of capital without having to share profits, thereby preserving the entrepreneurial spirit.

Godrej Capital Business Loans

Small establishments have the potential to make a significant impact. To support their growth potential, Godrej Capital offers flexible Business Loans to micro, small, and medium-sized enterprises (MSMEs). With exclusive benefits such as customized EMI plans, exciting rewards for timely repayment, quick loan approvals, zero collateral requirements, and more, MSMEs no longer have to be held back from achieving their business goals.

So if you are planning to grow your business or thinking about how to grow your business online, a Business Loan can be a valuable tool. Business owners looking to expand their operations, navigate tax implications, manage working capital, invest in upgrades and advancements, and maintain control of their profits can leverage the benefits of a Business Loan. With the right lender, the benefits of a Business Loan can contribute to the success and growth of small businesses, unleashing their full potential.

Also Read: Solving the Top 5 Challenges of Availing Business Loans in India

Wait no more! Apply for a Business Loan today.

Looking for more information? Visit our Knowledge Centre to get more insights on Business Loans.

Related FAQs

1. What is the eligibility for a Business Loan?

Eligibility for a Business Loan typically requires your business to have been operational for a minimum of 3-5 years. Lenders also look for an adequate annual turnover and a good credit score. Up-to-date financial statements and a clear business plan are essential. These are some of the factors for Business Loan eligibility, as they help demonstrate your business's stability and growth potential.

2. How can I get a Business Loan quickly?

To get a Business Loan quickly, prepare all necessary documents in advance and maintain a good credit score. Choose lenders known for fast processing and consider applying online for Business Loan. Seeking pre-approval options can also expedite the process, ensuring you receive funds promptly to support your business growth.

3. What is the Business Loan rate of interest?

Depending on whether the loan is secured or unsecured, the interest rate for a Business Loan typically ranges from 10% to 20%. This rate depends on various factors such as lender policies, loan amount, and credit score. It's advisable to check with individual lenders for precise rates that best support your business growth. At Godrej Capital, unsecured Business Loan interest rates start from 17% p.a.

4. Which loan is best for a small business?

The best loan for a small business depends on your specific needs. If you have a property to mortgage, you can avail a secured Business Loan like Loan Against Property or Udyog Loan Against Property. If you don’t have a property to mortgage, you can avail an unsecured Business Loan.

5. Who can apply for a Business Loan?

Business Loans are available to sole proprietors, partnership firms, private limited companies, public limited companies, LLPs, and self-employed professionals. These loans are designed to support business growth, particularly in the most rapidly growing business sectors in India.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially.
The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements.
Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com