Statistics indicate that around 52% of the Indian population is under 30 years of age, and India is betting on these young innovators to drive growth. Considering India’s emerging global entrepreneurship and investors market, the government has taken vital initiatives to encourage ambitious and aspiring young Indians. These include Mudra Yojana, Digital India, Make in India, Online Business Loans, and many others.
Considering the rise of entrepreneurship among young Indians, many loan companies have started offering lucrative loan plans at competitive interest rates. A business requires funding at different phases of its lifecycle, such as expanding operations, recovering from losses, handling seasonal peaks, or starting a new product line. Young entrepreneurs must find ways to use Business Loans in every possible way optimally. Below, we will discuss a few ways young entrepreneurs in India can leverage an online Business Loan for their maximum benefit.
1. Buy Inventory
Every business needs inventory to be successful. Maintaining inventory ensures that the business runs seamlessly in a hassle-free way. Getting a Small Business Loan to buy stock can work well as you need to repay the loan in installments, which can be met as you keep selling the product.
2. Spend on Equipment
Many businesses rely heavily on machines and equipment for production. When the time comes to expand the capacity, the company must optimize its production process by adding more machines, repairing or replacing worn-out equipment, and upgrading the current ones. Whatever the business needs are, a Business Loan for SMEs helps cover them efficiently. With an unsecured loan for SMEs, borrowers get a quick money influx that they can use to boost their production capacity.
3. Expand Business
An SME loan helps expand the business, as the borrowers can use it for various reasons, including expanding the workplace, opening a new office, purchasing inventory, hiring qualified staff, or investing in marketing. All these things are crucial when the business is planning to expand.
4. Manage Cash Flow
Many companies sometimes lack funds, finding it difficult to maintain smooth business operations like staff salaries, utility bills, inventory purchases, rent, and shipping. During such times, an unsecured Business Loan comes into play, as getting this funding source helps meet requirements and boost profits. Loan companies do not have any share in the company‘s revenue.
5. Get Tech-Savvy
The way businesses operate has changed significantly over the last few years. Young entrepreneurs prefer running their businesses on the Internet. An effective online presence increases their reach, reduces overhead expenses, and delivers several other benefits associated with e-commerce. However, maintaining maximum visibility on the internet requires sufficient funds and resources.
Since most customers decide on their purchase based on the site’s appearance, young professionals invest significant money and time in building a useful and attractive website. Getting a good web development team, setting up a user-friendly and responsive website, and maintaining it properly requires significant funding that an online Business Loan can provide.
6. Develop Infrastructure
Infrastructure is one of the paramount factors required to operate a business successfully. A robust infrastructure ensures that employees are well-maintained and work in a favorable environment. For young entrepreneurs, a good infrastructure means having a proper office space, keeping the inventory full, building an efficient storehouse, and taking other crucial steps.
7. Employ Valuable Resources
A business expansion requires sufficient resources, and the most valuable assets for a company are the employees it hires. Employing highly skilled people is a way to ensure a company’s smooth functioning. An SME loan increases a company’s capacity to hire quality employees, which eventually increases productivity and gets more work done.
8. Develop a Solid Marketing Strategy
Young entrepreneurs focus more on understanding the market and applying proper strategies to target their customer base. Even with an attractive website, a company needs to market its products and services efficiently to reach customers as desired. Both online and offline marketing requires market study, teams, research, and surveys to target the right crowd. Creating a solid marketing strategy requires capital, and obtaining an online business loan helps a company get the required funds.
9. Grab Opportunities
Young entrepreneurs want to grab every opportunity that comes their way. If they act slowly due to a lack of funds, someone else may seize the prospect, and they will lose their chance to grow. For most businesses, opportunities arrive during particular seasons. High customer demands are the best times to boost productivity and make the most of it.
No one would want to lose such opportunities due to a lack of resources. An unsecured business loan keeps a businessman ever-ready to achieve business milestones and grow whenever possible.
Features of Small Business Loans that Make Them Lucrative Funding Sources
Although SMEs have numerous funding options in India, small business loans are the most popular ones due to several features they only have.
Fast Approvals: Young entrepreneurs prefer new-age NBFCs and fintechs for business loans due to their faster application and approval procedures. When you don’t have the time or patience to wait for weeks to get the loan sanctioned, new-age NBFCs like Clix Capital approve and disburse loans comparatively faster than other funding options.
Unsecured Loan Availability: Young SME owners usually do not have enough assets to pledge as collateral to obtain a business loan. The unsecured nature of small business loans makes them a viable funding source for individuals with minimal risk factors.
Easy Access: The easy eligibility conditions and minimal documentation requirements of NBFCs make business loans accessible to most entrepreneurs without hassle.
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Technologically advanced NBFCs know that each business has diverse needs. Hence, they offer multipurpose finance options to cover them all. They offer attractive interest rates, provide flexible EMI plans, and require minimal documentation on online business loans.
When you want to explore loan options based on the loan amount and the EMI you can pay, go to the Free Business Loan EMI calculator on Clix Capital’s website and facilitate a hassle-free repayment plan.
Summary: Irrespective of size, every business needs funds for operations. An online business loan is the most efficient way for young entrepreneurs to acquire quick funds without collateral. Use the loan properly to achieve business goals and expand at the right time.
