Pro Tips To Grow Your Small Business This Festival With The Best Business Loan

Growing a business is a responsibility that every entrepreneur holds and wishes to accomplish. Especially due to a lack of finance and cutthroat competition, it might get tough to stand in the battle sometimes. A business loan, however, can help you have the leverage and take your business venture to another level. Want to know how to grow your business in the festive season with the help of a business loan? 

Stick to this article to find out everything about business loans, the benefits of taking them, and the ways to grow your business and take it to another level. 

What exactly is a business loan and why is it applied for? 

A business loan is a type of loan that you take from a lender to invest in your business and multiply your growth. The lender lets you borrow money to help you invest in buying raw materials, investing in equipment, spending money on advertising, etc. In return, the lender charges you a specific rate of interest on the principal amount and gives you a set period within which you have to clear the due. 

You can take that money and invest in it, growing your business, producing more goods and services for your businesses, and increasing your sales over time. It gives you a kick-start to your business and helps you overcome the cutthroat competition in the business world. 

What are the benefits of taking a business loan during the festival season? 

Since the festival is around the corner, you need to meet consumer demands effectively. And for that, you need to ensure that you produce more products, focus on providing quality services, and tackle the marketplace. 

Here are some benefits of getting an online business loan this festival:

• High loan amount:

Banks offer you a high loan amount to help you invest more in your business venture. The loan amount can go up to as high as 50 lakhs. In some cases, if your credentials are strong and your business is profitable, then the loan amount can be stretched to even 1 crore.

In addition, various government schemes also focus on providing you with high loan amounts and charging you minimal interest rates. 

• No collateral:

Since most business loans are unsecured, there is no need for collateral or any type of security deposit while applying for it. This is a benefit for you if you are a new entrepreneur and you lack collateral of any kind to make a start. 

• Low rate of interest:

The rate of interest on most business loans is quite low to make sure that your maximum money is invested in your business. You have to deposit a minimum amount of money as instalments and the rest you can use to grow your business. Mostly, the interest rate that most banks charge is between 15 per cent per annum to 20 per cent per annum. You can also look for government schemes that subsidise more so that you don’t have to pay high interest. 

• Quick disbursal:

The approval process is quite fast and you can get your money disbursed within a day Or sometimes, within two to three days. If your credentials are well and the bank has special offers for the festive season, then you can get approval in lesser time. 

How to scale up your small business with a business loan during the festive season? 

With increasing consumer demand, you have to make sure that you focus more on the quantity part along with maintaining the quality of your products. And to do all of that, it takes a good strategy and smart financing choices. 

1. Invest in equipment:

Especially, to increase the production of products to meet customer demands, you need to buy more equipment. The new equipment will be more efficient than the previous ones and help you produce on a large scale. 

2. Invest in the workforce:

The best way to intensify the whole process, you need to hire more workers. Hiring more workers will not only increase production but also fasten the process. You have to make your inventory full of your goods so that when the time of sale comes, all you have to do is focus on selling more products. 

3.  Invest in manufacturing:

Invest the money you take from the business loan in your manufacturing sector as well to produce more goods and keep it in surplus for your inventory. Make sure you have all the raw materials and other requirements to produce more goods in bulk. 

4. Invest in advertising and marketing:

This is a very effective and huge step to increase your sales and take it to the roof. Advertising your product will let people know about your products and offers, and will bring more customers to you. This will amplify your sales and to even fasten the process, you need to market that effectively. Make sure that you don’t invest a lot of money in advertising, and focus more on product manufacturing. 

5. Website creation:

If you have always wanted to have your business website, this is the right opportunity and the right time to do so. You can use a small part of this business loan to invest in creating a website for yourself. Make your website appealing, curate it, and add your social media handles to increase insights and traffic on your website. 

Summing it up

During the festive season, you have to make sure that your inventory is always in surplus and that you never run out of any raw materials. Use the business loan to curate your website as well so that you can connect with more customers who would like to purchase your goods. If you can manage home delivery services in your city, that would even help you increase your sales. 

If you liked this article, and you want to read more on this topic, you can visit Piramal Finance. It has ample content on personal finance, investment schemes, loan systems, stock market information, etc.