Tuesday - Mar 19, 2019

How a Machinery Loan Can Help Grow Your Business


machinery loan interest rate

When you are in the phase of growing your production business, then it is logical that you would need good machinery which can ease your work and reduce manpower. But buying and maintaining them gets tough as a lot of funds get in its way. You cannot always use your working capital, also the amount needed to buy, lease or maintain a machine is not always affordable. In that case, you can opt for business loans which are particularly for machines, generally termed as loan on Machinery.

There Are Various Reasons for You To opt For A Machinery Loan

#1. Machinery or equipment is a part of an industry. They are used in almost every kind of business, be it for construction purpose, or manufacturing business, metallurgy, transport, agriculture or even medicine. In such cases, your main concern is to have a better functioning machine so as to increase your productivity. This requires a lot of maintenance which in turn requires a lot of funds out of your pockets.

#2. when you get a big project to complete in which you require more machines in your factory so that you can complete the project on time without using much labour work. Here, you could either buy new ones or get on a lease. Either way, a huge amount of money would be needed to solve the problem. Bajaj Fiserv provides you with flexible machinery loan so that you can get the loan as quickly possible and you can carry out your work without having any tension.

#3. if you want to save yourself from paying a huge amount of tax then you can buy machines as your assets. This not only gives you tax immunity via depreciation but also improves your balance sheet. So if you have this plan to implement then machinery finance can help you to buy machines in instalments.

#4. it can happen that the kind of machines you want to buy are put up on sale or there is an offer which provides you huge discounts on buying a large number of machines. Still, purchasing can cost you a considerable amount of money which cannot be paid through your working capital. In these cases, you can make the best use of flexible equipment financing, which provides you with a collateral free loan and you can avail them in just a day.

#5. buying machines still could be a day’s task but to maintain it properly so that you can get the best use out of it is another big load of work to do. Machines are bound to get wear and tear because of the heavy use, so they need proper maintenance and care. some machines need upgradation and some needs to be replaced. You cannot always exhaust your current business earnings in maintenance, so as an alternative you can use machinery loan to repair, upgrade or buy machines. This loan ensures that your business productivity is not hampered.

Machinery loan provides you with high loan amount so that you can easily purchase machines or get it on a lease. Many financial service companies or NBFCs like Bajaj Finserv can give you a loan amount of as high as Rs 30 Lakh. Opting for machinery loan also gives you an advantage of flexible loans facility. Imagine, there is a demand for specific products in excess and some random company gives you the project to complete it within months. Now, you need more machines than what already you have and quickly so that you can fulfil the order on time. Also, you had a plan to get your machines repaired in the near future. At this time, you would need a huge amount of money to cover up all your present and future expenses. In that case, flexible machinery loan is exactly what you need. It gives you a particular amount for specific tenor and you can make as many withdrawals as you want within the tenor. The interest you would pay would be based on the amount you have withdrawn.

Bajaj Finserv also brings MSME and SME loans which not only provides you with a low machinery loan interest rate of starting from18% onwards, but offers you loans of up to Rs. 30 lakh. These loans are best for small, micro and medium businesses and just takes 2 documents i.e. the certificate of your business existence and financial documents related to your business.