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7 Reasons Why You Need a Business Loan In India

Clix November 13, 2020


Ample Funding for Growing Business

No matter how well your business is doing, as a business owner, you can always invest and make use of more money for expansion of your business. A business needs funds to address cash flow, working capital issues, employees’ salaries, provisioning for contingencies, and more.

From growing to successful small businesses, every business faces financial challenges at some point. From adding improved equipment, shifting to a new location, starting out an additional vertical, to hiring more team members; every milestone comes with a need for financing.


If you’re wondering whether your business needs more funding, read on to find out 7 reasons it’s time to get a business loan for your venture:

  1. You are facing challenges in paying your Employees

If you’re facing a challenge to maintain a steady cashflow to pay your employees, this doesn’t mean that your business is running into losses. In fact, some businesses start with just one or two employees and gradually expand the team size based on the sales and production. If you find yourself strapped for cash when it comes to paying salaries to your employees, you should consider applying for a business loan right away.

  1. You Need to Stock Up More Inventory

Many a times, small businesses that are constantly growing, are faced with a common challenge – not having adequate funds for the additional inventory to meet growing orders. If your business started with a capacity to accommodate limited orders, a surge in the order quantities can put you in a rough spot. Imagine getting a big order amidst the inventory crisis; your business can be significantly disrupted!

Small business owners facing an inventory issue definitely need a business loan to stock up and meet the growing orders. Inventory financing is one of the most common reasons most businesses apply for a loan to have additional funds at hand.

  1. You Need to Acquire a New Equipment

Ever-growing small to medium-scale businesses are constantly on the lookout for new and improved methods that could lead to a significant dip in the time and cost of production. One of the best ways to fund the purchase of a new and improved equipment is by availing a business loan.

Business equipment financing is the best way to invest in modern, reliable, and cost-efficient equipment.

  1. Your Business Needs a Vehicle/Van

Just like business equipment, investing in a business vehicle is extremely important to have a reliable mode of transport for business purposes. Whether you’re looking to buy a new vehicle or adding to the fleet of existing ones, business loans for vehicles is a great idea.

You can also go for a business loan to upgrade existing vehicles if they’re prone to frequent breakdowns or mechanical errors.

  1. You Want to Boost Your Credit Score

If your business credit is in a bad shape, you should consider applying for a new business loan to pay off the existing balances. Doing so will help your credit score get a boost with timely payments and having a mix of credit in your credit profile. Although applying for a business loan will result in a hard enquiry on your credit score making it dip a little but with regular payments, it will heal itself.

  1. You Need a New Space for Your Business

If your business has outgrown the existing office space, it’s time to apply for a business loan to fund the lease/purchase of your new office space.

Whether you want to move to a new office location, acquire the floor adjacent or above, or want to get additional construction done on the existing commercial property; availing a business loan makes the ride a smooth and uneventful one.

Business loans are specifically designed to meet the growing real estate needs that offer ample funds at an attractive rate of interest with a flexible repayment tenor.

  1. You’re Facing Cash Flow Troubles

One of the most common reasons your business needs a business loan is to regulate the cash flow issues. Cash flow troubles are one of the biggest factors that can make or break a business. if you’re strapped for cash to pay for minor expenses, to fund building repairs, pay off regular expenses or more; it’s about time you apply for a business loan.

Once your business loan is approved and the funds are disbursed, the adequate funding will save you from worrying about missing bill payments, paying vendors, and so on.

If you are a small to medium scale business owner and seem to relate with the points mentioned above, it would be helpful for you to assess the need for a business loan. Reach out to us to secure an easy and hassle-free business loan at an affordable rate of interest with flexible repayment options.

Take your business towards the route to infinite success with our business loans. Write to us at or call us on 1800-200-9898 for any queries.


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