Running a small business in India is quite challenging. You need to maintain quality, serve your clients, and reinvent daily to sustain yourself in the competition. However, maintaining your existing business is not enough. You need to leverage opportunities to expand your empire with time. Having said that, business growth and expansion require finance that you can source from a small business loan. With this loan, you can cover several costs, such as premises, inventory, staff, equipment, marketing, and others.
If you are looking forward to expanding your business empire using a business loan, these are a few tips to follow.
Why Do You Need a Business Loan to Expand?
1. Rent or Expand Your Workplace
With a growing business, you may need to look for a bigger workplace as well. You may either decide to rent a bigger workplace or expand your existing one. In both cases, you will need money that a small business loan can provide you. A bigger premise can accommodate your growing needs and help you carry out your operations conveniently.
2. Upgrade or Purchase Additional Equipment
To accommodate your increasing demand, you need to upgrade your existing equipment or purchase new machines. Technologically advanced equipment can help you process your orders faster with higher quality standards. Therefore, apply for a business loan online and get the required finance to upgrade or purchase additional equipment.
3. Purchase Inventory
Sometimes, you may need funds to purchase your inventory, especially before the start of the peak season. You need to keep your inventory full so that you can fulfil any upcoming orders. You would not be able to maintain your business if you don’t have products in your stock. If a large order comes your way, you won’t be able to take that opportunity if you don’t have the funds to fulfil its demand. Therefore, apply for a business loan online and use the loan amount to purchase your inventory.
4. Market Your Business
These days, word of mouth is not enough to attract business clients and customers. Owing to the increasing competition in the market, you need to invest in marketing and promotion as well to create your brand awareness. However, online and offline marketing needs some serious investment that you can source from a small business loan. With video, articles, paid, and podcast marketing, your brand gets attention and expands your reach.
5. Build a Qualified Team
If you are a business owner, you know that growth alone is not possible. Your business success largely depends on your team of employees. However, hiring qualified staff is not cheap, as you won’t be able to retain them for long if you cannot satisfy them, at least financially. This is where a small business loan can help you.
6. Diversify Your Product or Service Offerings
A business loan can provide you the required finance to diversify your product or service range.
7. Build Working Capital
The working capital is the money you need to sustain your business operations, such as paying utility bills, handing out salaries, managing inventory, and others. It becomes difficult to sustain your business if the demand is low and you don’t have sufficient funds to continue your daily operations. This is where your working capital comes to your rescue. When the business is slow, you can use your working capital to meet these expenses. A small business loan can help you build your working capital to sustain business and grow.
Eligibility Conditions for a Business Loan
To apply for a business loan online from Clix Capital, you need to fulfil the following business loan requirements:
- You must be minimum 21 years of age at the time of loan application
- You should not be more than 65 years of age at the time of loan term end
- Your business must have a minimum turnover of ₹ 1 Crore
- Your business must have at least 3 years of vintage in the current work area
- The majority of your business should be routed via the banking system, reporting audited financial statements for the last 2 years, or capturing turnover in the last year through GST returns
Documentation Requirements for a Business Loan
If you are eligible, these are a few documents Clix Capital would like to check:
- Completed loan application form
- Passport size photograph
- Identity Proof, which may be your Aadhaar Card, PAN Card, or government ID if you are a government employee
- Address Proof, which can be your Aadhaar Card, passport, driving license, voter ID card, or utility bills for the last 2 months
- Proof of Ownership
Financial Documents, which include the following:
- PAN Card for a firm, company, or individual
- 6-months bank statement
- Copy of the most recent Income Tax Return form
- Computation of income, audited balance sheet, and profit & loss account for the last 2 years
- Proof of continuity of the business of 3 years, which can be your sales tax certificate, establishment, ITR, or trade license
If you are looking for a business loan to expand your empire, apply for a business loan online from Clix Capital. We offer SME loans of ₹ 5 to 50 lakhs at competitive interest rates with flexible repayment tenure. You can choose your loan plan according to your repayment capacity and fund your business growth in time.
You can also reach out to us at email@example.com or call us at 1800 200 9898