An essential component defining the success of an engineering venture is positive working capital. A measure of a company’s operational efficiency and financial health in the short-term, a shortfall in working capital can hamper productivity, leading to a loss of revenue.
While an engineer loan can help you meet working capital needs, here’s how you can best utilise it for effective management of this critical business component:
Bridge payment delays from clients
You can bridge payment delays from clients and freeing up your blocked capital with funds from an engineer loan. A delay in receiving payments can hamper your financial commitments such as paying for utilities and paying salaries to your employees among others.
With instant funding of a large amount, you can overcome the shortfalls arising due to delayed payments. With India’s first engineer loan, leading NBFCs offers you a Business Loan for Engineers up to Rs.30 lakh with minimal documentation.
Documents required to get the instant approval on engineer loan:
The list of documents that you need to submit to the lender are:
- KYC documents – It includes identity proof, address proof, signature proof, etc.
- Proof of business vintage – You need to provide 3 years of business vintage documents.
- Photograph – You need to submit passport sized photographs.
- Engineering degree – You need to provide the certificate of your engineering degree.
This collateral-free loan gets approved within 24 hours to help you with the desired funds. Also, they provide pre-approved offers which helps in availing the loan is easy and simple. All you need to do is to share a few basic details to know your pre-approved offer. With an instant loan, overcoming a liquidity crunch becomes easy.
Manage inventory efficiently
With an engineering loan you can manage your inventory more efficiently. Also, this loan allows you to take advantage of bulk pricing while restocking your inventory where an upfront payment is made to take advantage of discounts or special prices being offered.
Discounts availed on inventory improves cash flows which subsequently leads to a positive working capital.
Upgrade to a new equipment
The quality of engineering equipment has a direct impact on output. Top-notch equipment helps you cut production delays and meet strict deadlines. It also boosts operational efficiency, which in turn bolsters revenues.
With an engineer loan, you can get replace outdated equipment with the best machinery for your business. It helps you to remain competitive and stay on top of your business.
An engineer loan helps you with funds to undertake expansion activities which can positively affect your revenues and working capital in the long run. Expansion leads to better management of orders and facilitates production. However, there are many unplanned expenses that might crop up during expansion. Thus, you need to be financially prepared to meet these costs.
This is where the Flexi Loan facility of Business Loan for Engineers from NBFCs comes handy. With this facility, you can withdraw funds as per your requirements from the approved loan limit without having to make multiple applications. Also, interest is charged only on the amount utilised and not the entire limit, thus lowering EMIs and helping in better management of finances.
With deft planning, you can make the best use of your engineer loan to improve working capital, bolster production and enhance productivity. Also, do compare offerings from multiple lenders before opting for this professional loan.