Every business looks for expansion in the future. While expanding, one generally looks for is to work on infrastructural upgrades, workforce enrichment, and to extend the working capital. To do all of this requires a reasonable sum of money which cannot come just from your savings.
The best option available to you in such circumstances is to go for a loan against property as it can generate a fund for you up to Rs.3.5 crore at a competing interest rate. This can fulfill your monetary needs efficiently and help you recover the cost of borrowing from the revenue as you can save your tax as well.
Here are the tips to help you get the desired funds.
To increase the output Upgrade the Available Machinery.
For any business associated with the production, machinery becomes the most valuable resource. Since machinery determines the quality of output of your product, one should always keep them upgraded. Thus it will lead to increased efficiency. An up to date machine reduces the chances of damage and hence, the overhead cost.
Buying advanced machinery or making changes to current ones is a costly affair. Several financial institutions in the market allow you Rs.5 crore at your disposal and thus can go for the necessary changes.
Increase the Manpower
Getting higher workforce can increase productivity. This method is usually expensive as it involves various processes and after that, you need to chop out the employees’ salaries as well. A loan against property gives you an edge over your working capital and hence allows hassle-free workforce-related payments.
Go for leasing out
In the case, you want to lease out your corporate space to accommodate machinery and staff, Leasing out the office space comes as the first option when you think of expansion.
The another option is to renovate your premises to support your business plans. In both the ways you have to pay a significant amount. Loan against property insures easy to lease or to renovate a workplace, without compromising the working capital and a suitable tenure to pay back the borrowed money.
Stock up the Inventory of High-grade Raw Materials
The quality of raw materials is an essential factor you should consider while thinking of an expansion, especially in the production sector. Though with improving the quality, you need to look for the storage space as well. The final cost can range to a few lakhs.
Work on Research and Development
R&D is a crucial element of expansion, and you could bring new and innovative products in the market through it. Depending upon the the business you are in the research and development can cost you a lot of expenditure. Loan against property can be beneficial to you to stay ahead in the market through research and development.
Go for Targeted and Aggressive Marketing Practices
To inform about the company to the market, you need an aggressive strategy. A loan against property is the best option as you can access the funds as per your needs flexible tenor of up to 20 years.
You can avail the Flexi feature as it allows you to borrow from your sanction at any time and only get charged interest on the amount that you withdraw. You also have an option to pay interest-only EMIs through the tenor and repay the principal at the end. This method can significantly reduce your monthly installments up to 45% and thus your operational expenses as well.
There are options these days available online as well to get a fast and hassle-free loan against property.
Also Read, Why should you opt for a top-up home loan?